Several reports have provided evidence that sub $200 Blu-ray players have been big hits so far this Christmas buying season. The fact that Blu-ray sales are now hot, in this economy, supports the idea that after the price barrier is broken, there are tangible reasons for the popularity of the technology.

What appears to be a tipping point for Blu-ray has been reached, just as analysts predicted. We've reached the $200 point for mass market Blu-ray players for the living room.

Sony BDP-S350, a PriceGrabber.com Hit

When the prices were in the $400 range, the off-putting price masked the realities of Blu-ray, namely:

• People are hungry for a better picture, but they haven't had the money to afford the luxury. Now they do.
• It's far easier for an 8 year-old to drop a Blu-ray disc of Ratatouille into the player on Christmas day and press "play" than it is to log onto dad's Mac, launch iTunes, and order up a movie on dad's credit card to be viewed only on dad's tiny 17-inch display.
• A Blu-ray disc is a tangible product that reflects they money paid. Hollywood understands that.
• It is its own backup in that it's durable, and few end up damaged beyond use.

I should mention that one of the truly annoying things about Blu-ray is the incessant marketing for Profile 1.1 and 2.0 players. I saw a TV ad the other night that showed how customers will be able to record their own videos of their reactions to a movie and "share" it with others. Other interactive features allow picture-in-picture effects in which one can watch the director commenting on various scenes. Blech.

I strongly suspect that most customers just want to watch a good movie. Quantum of Solace cost US$230 million dollars to make, and when I buy it on Blu-ray, I'll be watching Daniel Craig and Olga Kurylenko, not the director making cute remarks.

However, if one develops an attitude about the technology based on pre-conceived notions that physical media is dead and interactive features are for idiots, then that dictates how to compete against the technology. So far, customers don't seem to have those notions. They just want to buy a copy of Finding Nemo for their kid and enjoy the look on the child's face. Or own a copy of the Bourne Identity that matches well with the capability of their new HDTV bought at CostCo.

Now that the price balloon has burst, we're seeing people embrace Blu-ray for what it really is, even amidst a recession. That's a powerful lesson about what people really want and how they go get it when they can afford it.