Sony's HD Strategy in A Busy Market

It has been a furiously busy season of developments in the HD market, and Sony has fought hard to remain in the spotlight. Their new HDR-FX7 ($3500) camcorder may be laden with features, but whether it can stand up to the public’s increasing appetite for affordable, quality HD will be Sony’s toughest challenge.

The Sony HDR-FX7

New products have been pouring into the market. Canon released the XH A1 ($3999) and XH G1 ($6999) – barely stripped-down versions of the professional XL H1 – in late July, then days later unveiled their first consumer HDV camcorder.

AVCHD, a new consumer HD standard based on MPEG-4/H.264 technology jointly developed by Sony and Panasonic, was rolled out in May. The call was out for interested parties, and by mid-July, a long list of licensees were announced. Sony wasted no time implementing the format themselves, and unveiled two new AVCHD camcorders – the HDR-UX1($1400) and the HDR-SR1 ($1500).

On top of this, there have been persistent rumors of JVC’s first Everio HD camcorder on its way. At first it came in drips and drops, but now it seems that HD’s long-awaited explosion onto the market is finally here, from the prosumer to the consumer. Sony was the first manufacturer to have a major presence in the HD market, and with the addition of the HDR-FX7 to its substantial line, it intends to remain a dominant presence.

The new HDR-FX7 makes for seven HD camcorders from Sony. From top to bottom, they include: the pro-line HVR-Z1U ($5946), the prosumer HDR-FX1 ($3700), HDR-FX7 ($3500), HVR-A1 ($3100), and the consumer HDR-HC3 ($1500), the HDR-HC3 ($1500), HDR-SR1 ($1500), and the HDR-UX1 ($1400).

The manufacturer with the next closest number of HD products anywhere near this price range is Canon, with only four models, the XL H1 ($8999), the XH G1, the XH A1, and the HV10 ($1299) - and the latter three have yet to ship. But what Canon lacks in market saturation may well win out in terms of sheer performance for the dollar.

Whether or not Sony intends for the FX7 to compete in the prosumer / pro market, the price point is very close to Canon’s XH A1 ($3999), which offers the same imaging system as the XL H1. Though lacking SD/HD-SDI, timecode, and Genlock, Canon's XH A1 does have XLR inputs, external audio controls, tighter zoom control, and (on paper) a better auto focus control than the HDR-FX7. These are features that pros will gravitate towards. And the reality of the market is that once consumers have entered the $3000+ market, an extra $500 is not a considerable impediment. In a camcorder shop with the Sony HDR-FX7 and the Canon XL H1, the majority are going to lean towards Canon.

Canon's XH A1

Sony’s strategy is a different one from Canon’s. Canon waited for quite a while before releasing their first HD model, the XL H1, in late 2005, then waited nearly a whole year before announcing the lower-priced versions to compete in the budget pro and prosumer markets. Their patience will likely pay off with excellent products that seem to satisfy the demands of both electronic news gatherers (ENGs) and indie filmmakers: size, manual controls, and a solid array of ports.

Sony took a bolder approach, hitting the road hard and fast, filling the market with camcorders in an attempt to strengthen name brand and choice. Though JVC was the first to bring HD down from the professional to the prosumer with the GY-HD1, it was Sony that brought HD to the masses.

Sony’s second strategy for the HDR-FX7, at least as it appears now, is a risky one – narrowing their target market. Indie filmmakers want 24P and that has been made clear in the last few years. Rather than improve the frequently berated Cineframe shooting mode found on the HVR-Z1 and HDR-FX1, Sony has dropped it entirely from the HDR-FX7. Sony has more or less written off indie filmakers as potential buyers of the HDR-FX7.

However, this camcorder will likely be welcomed into the down-and-dirty crowd of ENGs, wedding videographers, and low-budget documentarians – those who have become accustomed to the Sony interface of the DCR-VX2100 and DSR-PD170. Brand loyalty runs strong in these markets, no doubt a fact that Sony is counting on. The Sony is also lighter than most camcorders in its class, weighing in at only 3 pounds, 10 ounces, fully loaded.

The older, but still popular, Sony DCR-VX2100

The bottom-line question remains the same: will the HDR-FX7 succeed? And, as always, speculations abound, but the answer remains to be seen. Our guess (a rather informed one, if we may be so bold) is that indie filmmakers and people willing to trade brand loyalty for better performance will opt for a Canon XH A1. Brand loyalists, the cash-strapped, and ENGs concerned with equipment weight will lean towards Sony.

The HDR-FX7 has been thrust into a crowded and highly competitive market, but the sheer volume of Sony camcorders will likely be enough to make it a profitable gambit.