DVD prices too low?

Discussion in 'DVD' started by Robert Dunnill, Nov 21, 2003.

  1. Robert Dunnill

    Robert Dunnill Second Unit

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    Interesting article on how some of the major industry players are complaining about DVD discounting.

    And Virgin wonders why I never buy anything there? Usually, I pay under $10 for a title, and I'll almost never pay over $20.

    Admins, if this has been posted already, I apologize.

    RD
     
  2. JustinCleveland

    JustinCleveland Cinematographer

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    They've got that pretty backward...

    Deep discounting happens the week it's released, then the price goes UP. Maybe a year, or six months later, it'll drop below MSRP (or MSRP will change.) Looks like the reporter just misinterpreted her sources.

     
  3. Dave H

    Dave H Producer

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    Just a few thoughts regarding the matter...

    The reality is studios and stores are making money from DVDs. The $14.99 price is only for the opening week, anyway. On any rate, the "loss leaders" are a good thing. I want the best price possible. For myself, customer service isn't a big deal when just buying a DVD. ( I really don't have a customer service issue with Best Buy or Circuit City.)

    In all actuality, I rarely pay over $9.00 for a DVD since I go through Columbia House. $14.99 is too high for me. [​IMG]
     
  4. Jesse Skeen

    Jesse Skeen Producer

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    After getting most laserdiscs for an average of $35, anything under $15 is FREE as far as I'm concerned!
     
  5. Malcolm R

    Malcolm R Executive Producer

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    Below Wherehouse's cost, perhaps, but I'd wager the studios are selling DVD's at a per-unit price that's considerably lower to Best Buy and Wal-Mart who may order 500 copies per store than to Wherehouse which might stock 10-20 copies per store. Economies of scale, ya' know.
     
  6. Wayne Bundrick

    Wayne Bundrick Cinematographer

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    DVD prices are not too low, unless you're comparing them to CDs, and then to use the CD as comparison you'd be arguing that CD prices aren't too high.
     
  7. Tom B

    Tom B Extra

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  8. Robert Dunnill

    Robert Dunnill Second Unit

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    I dunno...MGM and others are marketing catalog titles for $10 MSRP, and some contain two features (with high-quality transfers).
     
  9. Seth--L

    Seth--L Screenwriter

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    It basically sounds like studios and stores are pissed that they're not making more money than they currently are and believe the number of sales would be the same if prices were higher.
     
  10. Craig W

    Craig W Second Unit

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  11. Robert Dunnill

    Robert Dunnill Second Unit

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    Laserdiscs were expensive to produce and volumes were low. DVD , on the other hand, is probably cheaper to produce than VHS and volumes are very high. I know companies want to charge higher margins because they know that DVD is worth more to consumers, but still, many of us simply can't afford product at those prices.
     
  12. Garrett Lundy

    Garrett Lundy Producer

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    Oh Boo-Hoo. The customer is paying in excess of ten dollars for a product that costs less than a nickel to produce and people are bitching because they dont make enough money. They should see DVD pricing in Afghanistan where a $2 DVD will have three movies on it, all of them still in the theater!

    But maybe the studios loosing money will force them to sell Blu-Ray disks and players sooner.
     
  13. JustinCleveland

    JustinCleveland Cinematographer

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  14. Glenn Overholt

    Glenn Overholt Producer

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    And Justin gets a prize for figuring it all out.

    Isn't Virgin basically a record label - and if so, why are they trying to sell things other than records? Oh, and how high are their record prices?

    And outside of all that, we all know that the chain stores have low prices on these to drive the competion out of business, and after they are 'the only store in town', they can set their own price on them.

    Glenn
     
  15. BrianB

    BrianB Producer

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  16. Robert Dunnill

    Robert Dunnill Second Unit

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    Virgin has had a chain of large stores for years. In fact, it was at the Grapevine Mills branch that I bought my first DVD (at full MSRP!), but I don't think I bought any others there. Soon afterwards, I clued into the fact that much better deals could be had at Best Buy, Circuit City, and Fry's (and later, e-tailers).
     
  17. Johnny G

    Johnny G Supporting Actor

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    What makes you think these are loss leadres for the big boys? Have you seen the discounts they get?

    Quantity counts for everything, that's why they're cheap for the first few weeks. As soon as their initial batch sells out, the price goes up. Their pre-order will be at anything up to 70% off dealer price, depending on studio.

    This is the sole reason mom & pop stores can't compete, they don't get the same discounts, some may only get 10% - 20% off on their pre-order or even nothing at all!!!
     
  18. David Williams

    David Williams Cinematographer

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  19. Paul D G

    Paul D G Screenwriter

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    In comparison to CD prices, I think CDs are way too high. Consider "Concert for George" which just came out on both CD and DVD.

    Best Buy were selling them at $19.99 each. The DVD contains 5.1 surround and the video of the performance, and I would assume higher production costs compared to the CDs stereo audio only version. The CD should be half the price.

    As another example, Michael Jackson's Number Ones. Amazon has a DVD list price of 14.98 while the CD is $18.98. Should be the other way around, really.

    And the RIAA wonders why no one buys CDs anymore...

    -paul
     
  20. Glenn Overholt

    Glenn Overholt Producer

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    Ok, Virgin's assets sort of slipped my mind. After all, how many virgins are really left? [​IMG]

    Having said that, you'd think they'd know that they can't get the same price, and keep out of the market, but maybe if they lowered the prices on the rest of their stuff, they might stand a chance.

    I think that if I were a retailer I'd try to get together with others and buy the DVD's in quantity. If they could meet the price, it could get pretty funny.

    Glenn
     

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