DanR
Supporting Actor
- Joined
- Dec 27, 1998
- Messages
- 676
On the off chance that Universal actually cares and since their marketing and finance departments seem to be asleep on the job, I figured I'd do their job for them. . .
Reposted and edited from my original post in the Software Forum:
They way any rational company SHOULD look at this is as follows (and this is back of the envelope here with very quick data):
1)I have ~24 Universal DVDs after 4 years of Collecting, which is ~6 discs per year.
2)Universal's margin per disc is ~ $11-13 per disc; this should be pretty close to actual.
3)6 * 12 ~ $72 contribution margin to Universal per year from me.
4)Assumption: No matter what the video format is, the margin has to be assumed to be the same; we can't speculate on the DVD-succesor's margin (though we should assume it would actually be more once it reaches maturity, otherwise what incentive would the studio have to support the "new" format?). I'm a collector, and will collect indefinitely until I die, say 45 years from now.
5)$72 per year for 45 years discounted @ the 30 year rate of 5.64% gives a value of ~ $1,150 of me as a lifetime customer to Universal.
So, I'm worth $1,150 to Universal in terms of today. Basically, my lifetime value to Universal as a customer is $1,150 in today's $.
I'm not buying anymore Universal DVDs until they stand by their product. So they just "lost" ~ $1,150 because I am no longer their customer.
6)How much does it cost Universal to press and author the new disc, $2? $3? Add in shipping via USPS Priority Mail @ ~$3 for a total of $6 cost to replace a JP DTS DVD.
Final Result:
By not replacing my Jurassic Park DTS, Universal has just "cost" themselves ~ $1,144 (i.e. -$1,150 loss of me as a customer plus the $6 they "save" by not replacing my JP DTS).
[I'm not extending them the courtesy of signing my name until they extend courtesy to me as a customer]
Reposted and edited from my original post in the Software Forum:
They way any rational company SHOULD look at this is as follows (and this is back of the envelope here with very quick data):
1)I have ~24 Universal DVDs after 4 years of Collecting, which is ~6 discs per year.
2)Universal's margin per disc is ~ $11-13 per disc; this should be pretty close to actual.
3)6 * 12 ~ $72 contribution margin to Universal per year from me.
4)Assumption: No matter what the video format is, the margin has to be assumed to be the same; we can't speculate on the DVD-succesor's margin (though we should assume it would actually be more once it reaches maturity, otherwise what incentive would the studio have to support the "new" format?). I'm a collector, and will collect indefinitely until I die, say 45 years from now.
5)$72 per year for 45 years discounted @ the 30 year rate of 5.64% gives a value of ~ $1,150 of me as a lifetime customer to Universal.
So, I'm worth $1,150 to Universal in terms of today. Basically, my lifetime value to Universal as a customer is $1,150 in today's $.
I'm not buying anymore Universal DVDs until they stand by their product. So they just "lost" ~ $1,150 because I am no longer their customer.
6)How much does it cost Universal to press and author the new disc, $2? $3? Add in shipping via USPS Priority Mail @ ~$3 for a total of $6 cost to replace a JP DTS DVD.
Final Result:
By not replacing my Jurassic Park DTS, Universal has just "cost" themselves ~ $1,144 (i.e. -$1,150 loss of me as a customer plus the $6 they "save" by not replacing my JP DTS).
[I'm not extending them the courtesy of signing my name until they extend courtesy to me as a customer]
