Why are DVDs more expensive than VHS now?

Discussion in 'Archived Threads 2001-2004' started by Chris Bardon, Dec 19, 2002.

  1. Chris Bardon

    Chris Bardon Cinematographer

    Joined:
    Jul 4, 2000
    Messages:
    2,059
    Likes Received:
    0
    Trophy Points:
    0
    I realize that DVDs are getting cheaper every year, but I have to wonder why they're sill more expensive than sell through VHS tapes. Would it not be cheaper to press discs than duplicate tapes? Add to that the shrinking appeal of VHS, and we should be seing lower prices for discs, correct? Are prices being kept high just to maintain a much higher profit margin on each disc?
     
  2. Travis Olson

    Travis Olson Supporting Actor

    Joined:
    Oct 7, 2001
    Messages:
    937
    Likes Received:
    1
    Trophy Points:
    0
    Real Name:
    Travis Olson
    A lot more time and money goes into creating a DVD then a VHS tape. I can't even imagine the resources some of the studios use to create some of the new special editions like The Fellowship of the Ring EE. And the price we pay is a bargain if you ask me.
     
  3. Patrick McCart

    Patrick McCart Lead Actor

    Joined:
    May 16, 2001
    Messages:
    7,566
    Likes Received:
    195
    Trophy Points:
    9,110
    Location:
    Georgia (the state)
    Real Name:
    Patrick McCart
    VHS tapes are getting cheaper, rather than DVDs being more expensive.

    However, it's usually for a reason. VHS tapes don't take a lot of effort compared to even a bare-bones DVD.
     
  4. Todd Phillips

    Todd Phillips Second Unit

    Joined:
    Oct 15, 2000
    Messages:
    279
    Likes Received:
    0
    Trophy Points:
    0
    Prices are set to make a profit for the people who sell the product, not to break even on production costs. Plus inflation tends to push costs up over time. Why would anyone expect prices to go down as long as there is a consistent demand? People still complain about CD prices being more expensive than cassettes. It has almost nothing to do with the cost of the physical media.
     
  5. Jason Seaver

    Jason Seaver Lead Actor

    Joined:
    Jun 30, 1997
    Messages:
    9,306
    Likes Received:
    0
    Trophy Points:
    0
    People are willing to pay more for DVDs, plain and simple.
     
  6. Jesse Skeen

    Jesse Skeen Producer

    Joined:
    Apr 24, 1999
    Messages:
    4,380
    Likes Received:
    268
    Trophy Points:
    4,110
    They seem to be going DOWN, not up- they're WAAAY below what laserdisc prices were; it was a miracle to find anything on LD for under $20!
     
  7. Robert Dunnill

    Robert Dunnill Second Unit

    Joined:
    Jun 16, 2001
    Messages:
    375
    Likes Received:
    0
    Trophy Points:
    0
     
  8. wayne p

    wayne p Stunt Coordinator

    Joined:
    Jun 16, 2002
    Messages:
    162
    Likes Received:
    0
    Trophy Points:
    0
    It is an axiom of capitalism; charge what the market will bear.
     
  9. Jonny K

    Jonny K Second Unit

    Joined:
    Dec 18, 2002
    Messages:
    375
    Likes Received:
    0
    Trophy Points:
    0
    Yup, supply and demand!


    Jonny K.
     
  10. Michael Lee

    Michael Lee Supporting Actor

    Joined:
    Jan 7, 1998
    Messages:
    652
    Likes Received:
    0
    Trophy Points:
    0
    I know for fact that it costs studios $1.57 to make a VHS cassette and $1.02 for the DVD..so that would corroborate with the theories in this thread.

    This is so much better than when we were overjoyed that a bare-bones laserdisc release was going for 39.95!
     
  11. Todd Hochard

    Todd Hochard Cinematographer

    Joined:
    Jan 24, 1999
    Messages:
    2,312
    Likes Received:
    0
    Trophy Points:
    0
     
  12. Brian Kidd

    Brian Kidd Screenwriter
    Supporter

    Joined:
    Nov 14, 2000
    Messages:
    1,939
    Likes Received:
    250
    Trophy Points:
    1,610
    Michael,

    Perhaps that's what it costs to manufacture the physical medium, but does that take into account the cost of the transfer, publicity, rights clearances, etc?
     
  13. Jonny K

    Jonny K Second Unit

    Joined:
    Dec 18, 2002
    Messages:
    375
    Likes Received:
    0
    Trophy Points:
    0
    Perhaps this would be a good time to introduce some information about CD sales (as it might shed light on the DVD discussion).
    From what I've learned, on a 20 dollar CD you buy (that's Canadian dollars, so maybe $15 US) the artist only gets about 75 cents. That's PER CD. What happens to the other 19 dollars? Is it really all spent on production, distribution, and marketing? I don't think CDs are very expensive to produce, so then is all the money for distribution and marketing then? How much of that amount is profit for the record label? Something tells me it's no small amount.
    So then, how much profit does a studio make on the sale of a DVD?
    (and please, correct me if I'm wrong)
    Jonny K. [​IMG]
     
  14. Mathew Shelby

    Mathew Shelby Second Unit

    Joined:
    Dec 5, 2002
    Messages:
    344
    Likes Received:
    0
    Trophy Points:
    0
    Jonny,
    I couldnt tell you the last time I purchased a CD for $15 US. All the major B&Ms mark them down to ~$10-12. At that price, it is not worth my time to search and burn anymore. As far as DVDs go, I will not pay $20 if I can get the same movie for $15 somewhere else. But I would be willing to pay $20 if I felt the movie was worth it.
     
  15. Jonny K

    Jonny K Second Unit

    Joined:
    Dec 18, 2002
    Messages:
    375
    Likes Received:
    0
    Trophy Points:
    0
    Oh, ok. I guess my US price was off. (since I don't really buy CDs in the US, I wouldn't know).
    And I've got no problem buying a movie, but if the price is way too high, that just annoys me. Just look at Terminator 2. That movie costs a fortune on DVD. Why? Because it's so cool.
    Jonny K. [​IMG]
     
  16. PerryD

    PerryD Supporting Actor

    Joined:
    Aug 28, 2000
    Messages:
    737
    Likes Received:
    0
    Trophy Points:
    0
    Nearly all of the Studios (with the exception perhaps of Paramount) have lowered their older titles down to sell around $10-15, with many sometimes on sale even cheaper. This is something that had never occurred in the audio CD world. The music industry could learn quite a bit from the movie industry if they would drop the price of CDs in half after the first year. Think of how many CDs you would buy, or how fun it would be to "fill out" your collection if CDs could be had for $5-6 or so.
     
  17. Artur Meinild

    Artur Meinild Screenwriter

    Joined:
    Aug 10, 2000
    Messages:
    1,294
    Likes Received:
    0
    Trophy Points:
    0
     
  18. Jan Strnad

    Jan Strnad Screenwriter

    Joined:
    Jan 1, 1999
    Messages:
    1,004
    Likes Received:
    0
    Trophy Points:
    0
    Yeah, raw manufacturing cost is only a tiny part of the expense. It's the same with books, that cost fifty cents or so to print but which sell for $8 or so (thinking of mass market paperbacks). The author may get fifty cents or less per copy and the publisher doesn't do much better.

    CD prices have been too high for too long, and the music industry is now experiencing the backlash. Still, $15 is the price a lot of people are willing to pay, so that's what they charge. I don't know where you're getting them for $10-12!

    Jan
     
  19. Jeff-

    Jeff- Extra

    Joined:
    Mar 15, 1999
    Messages:
    18
    Likes Received:
    0
    Trophy Points:
    0
    I agree with what others have said before. It is simple economics. The studios are willing to supply the DVD with "x" features at "y" price. We as consumers are willing to pay "y" price for "x" features.
     
  20. Lew Crippen

    Lew Crippen Executive Producer

    Joined:
    May 19, 2002
    Messages:
    12,060
    Likes Received:
    0
    Trophy Points:
    0
    Something that no one has mentioned so far, is that tapes (both VHS & Beta) were (initially) priced to rent. DVDs were priced to sell. If one recalls, there was a reasonably large pressure group that tried to force DVD prices up, when they really hit the mass market.

    This failed, and we are seeing the outcome (among other things) in performance of Blockbuster). Of course (as many of you have already written) the price of DVDs has brought appropriate market pressure to bear on tapes.
     

Share This Page