Re: Speculation for Warner Bros. 85th Anniversary Celebration
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Originally Posted by MarcoBiscotti
Well that's silly... I guess they figure they've profited all they can off of the current releases and any income generated from leftover stock copies in retail will suffice until 2009?
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Actually, from a business perspective it makes a lot of sense. DVD's make money for a studio in the first several weeks of the new release, before they discount the price. As you know, it's not what the DVD sells for it's what the merchant pays for it.
So, every time a new release comes out it gets them back to full market price. So, building up some demand for the next release at a better margin can be an effective strategy. Naturally, they are also estimating the number of Blu-Ray players out there in 2009, hoping that will be a factor for demand as well.