HDcctv Product Pricing and Availability Examined

By John Honovich, Published Jul 29, 2010, 08:00pm EDT

HDcctv product release is likely to start this quarter. However, information from providers reveals significant concerns about the cost competitiveness of the offering.

Last year, we examined a digital HD camera provider offering box HD cameras at over $1,000 MSRP. This provider is OEMing product from a Korean member of the HDcctv organization.

This week, we obtained information from Speco, a US company, planning to release box [link no longer available], bullet [link no longer available] and dome [link no longer available] HDcctv cameras in August 2010. According to Speco's sales department, the box camera has an MSRP of $1250 (without lens) [note: the website shows an integrated lenses but Speco tells us the image is incorrect]. Speco additionally noted that HD DVRs supporting both HDcctv and analog cameras would be available shortly (likely August 2010).

This pricing is unlikely to be competitive with IP. The pricing level for both cameras is the same or higher than expensive HD IP cameras (such as from Sony, Panasonic, Axis, etc.).  HDcctv cameras additionally require encoding through encoding cards/appliances - adding in further cost. Even if you factor in reusing cabling (which should work in many but not all applications) and lower setup costs, the total cost is likely to be the same or higher for an HDcctv solution using these cameras.

This is surprising as the HDcctv advocated lower costs for HDcctv cameras as an important benefit. The basic case was that because HDcctv cameras did not require internal encoders, the complexity and cost would be lower. [For background, read our HDcctv competitive analysis.]

One factor cited for the higher prices is that these are early releases and that with volume, prices will come down. This seems plausible (e.g. Everfocus made the case for much less expensive HDcctv offerings) but how much lower and how soon are key questions.

We believe that market interest in HDcctv will decrease if HDcctv cameras continue to be released at prices equal or higher to high end IP MP cameras.

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