Blockbuster Profits Rise From DVD Growth

Discussion in 'Archived Threads 2001-2004' started by JJR512, Oct 24, 2001.

  1. JJR512

    JJR512 Supporting Actor

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  2. Neil Joseph

    Neil Joseph Lead Actor

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    Yeah I remember when they dipped their toe into the DVD rental market to test it out with only a handful of titles.
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  3. Christopher Wu

    Christopher Wu Auditioning

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    go figure... and this from the rental place that had like two shelves of DVDs while other more daring places had walls upon walls...
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  4. Page

    Page Stunt Coordinator

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    Ironic, ain't it?
    They were so adamantly against DVD when it first started up because of their huge video tape libraries and the fact that DVDs don't wear out any where as quickly as tapes. (Thereby causing customers to have to rebuy the same tape over and over.)
    Then, they tried to set up a high-priced rental only market for DVDs which would stop current new releases from being sold by the studios. (Thereby limiting what you could and could not buy on DVD.)
    Their selection of independent films and documentaries films is pitiful.
    They are huge advocates of pan and scan and full frame versions of films. (Add the fact that they also rent "cut" films which don't meet their "decency standards".
    So, DVD saved their butts, huh? Is there no justice in this world?
    This is one company I would LOVE to see go out of business. Maybe then we would see the independent stores which they pushed out of business reopen and renting films as they were intended to be seen and appreciated.
    (Okay. I'll step off my soapbox.)
     
  5. Johnny Angell

    Johnny Angell Played With Dinosaurs Member

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    Why is DVD a "higher-margin format" than VHS? I take this to mean that the percentage of the profit from the sale of one DVD is greater than that of a VHS tape.
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  6. Martino

    Martino Supporting Actor

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    It would be a "higher profit margin" product because the disks themselves are not setup for rental pricing like the tapes are. They spend $80.00-$120.00 for a new VHS release before the public has a chance to pick them up, but only $15.00 for the same movie on DVD.
     
  7. Marty M

    Marty M Cinematographer

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  8. Ted Lee

    Ted Lee Lead Actor

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    i knew something was up when i last went into bb. they reconfigured the entire store so that the dvd section is now the first thing you see. you absolutely cannot miss it.
    i'm still not getting how they make more money from dvd's though. it sounds like they pay less per copy then they did when they were buying the tapes? that seems weird that they're getting a better deal on dvd.
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  9. Sarah S

    Sarah S Second Unit

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    They make money because they own the dvds out right, making any rental income pure profit. With VHS, a certain percentage of any rental went back to the studio (as I understood it).
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  10. Brad_W

    Brad_W Screenwriter

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    I think it's ironic and hilarious that they are making money from DVDs because they were against it when they helped create DIVX. Now, DIVX is gone and DVD is here to stay.
    The company heads of Blockbuster and Circuit City were probably run by Homer Simpson clones when they came up with that idea. And when DIVX died and DVD prevailed... DOH!
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    My Home Page http://www.geocities.com/masternix/DVD.html
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