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Warner lowers Blu-ray pricing

 
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ecrabb
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Posted: Thu Jul 17, 2008 7:27 pm    Post subject: Warner lowers Blu-ray pricing

I don't recall anybody saying anything about this announcement last week. This is certainly good news. Hopefully, the other studios will follow suit. They gotta get things cooking. I know I'd buy a few more catalog titles if I could regularly buy them for 12 or 13 bucks.

http://www.videobusiness.com/article/CA6577564.html

Quote:
Warner lowers Blu-ray pricing
Retailers could get catalog titles for $11

By Susanne Ault -- Video Business, 7/11/2008

JULY 11 | Warner Home Video is launching aggressive pricing initiatives for the fourth quarter, including its most comprehensive Blu-ray Disc promotion yet, say retailers.

Starting early September and rolling through first-quarter 2009, Warner will offer a Blu-ray point-of-sale rebate program with which retailers will essentially be able to order participating catalog titles for around $11.

Even with a retail mark-up on the featured titles—including The Fugitive, Enter the Dragon, Clockwork Orange, The Shining, The Aviator, Road Warrior and Swordfish—the price tag to consumers should be significantly less than the titles’ current average of $20 to $25 retail price at outlets such as Amazon.com and Best Buy.


In this program, retailers will buy the titles at their present pricing but obtain rebate money back upon the sale of each unit. That should ultimately amount to a relatively inexpensive $11 cost for retailers.

Additionally, Warner will offer rebates, although less extensive, for newer Blu-ray releases, including 300, The Departed, I Am Legend, Ocean’s 13 and We Are Marshall. This layer of the Blu-ray program also will run from early September to the first quarter, according to store sources.

The consumer price for these titles is likely to fall somewhere between $17 and $20. That would still represent a deal for shoppers, as titles such as 300 are now falling between $24 and $30 at outlets such as Amazon and Best Buy.

Warner did not comment by deadline.

Although retailers hope Warner’s Blu-ray strategy will pay off with boosted sales, some store sources worry that the format is becoming devalued too quickly.

“They are trying to get this software business going,” said one source. “But it’s really a double-edged sword. We’re happy to be able to offer it, but it can be a slippery slope. Consumers might get in the mindset that they want everything discounted. If that becomes the case, we will shorten the life of Blu-ray just like we did with DVD.”

At deadline, Newbury Comics buyer Ian Leshin had not yet learned of Warner’s Blu-ray plan. But he seemed to embrace the studio’s strategy. The New England chain found success with Lionsgate’s Blu-ray repricings earlier this year. Lionsgate was the first studio to permanently reprice its Blu-ray titles, including Terminator 2 and Devil’s Rejects, down $10 to a new $19.99 SRP.

“Terminator 2 is our biggest-selling catalog title with the $19.99 SRP,” said Leshin. “It can become more of an impulse thing to buy.”

Warner’s Blu-ray rebate program comes on top of a straight repricing plan for a slew of standard-definition DVD titles that also goes into effect in September. As detailed in a July 2 newsletter to retailers, Warner will drop the price on varying titles to either a $19.96, $14.96 or $12.97 SRP. Some relatively new Warner theatrical DVDs are slated to fall to $19.96, including June 17 release Fool’s Gold and June 24’s 10,000 B.C. The discs originally streeted at a $28.98 SRP.

The $14.96 repricing will span such titles as Harry Potter and the Goblet of Fire and Blood Diamond, and the $12.97 price point will cover titles including Wedding Crashers and Ant Bully.

All studios often reprice titles as they age on shelves, but the retail community similarly has mixed feelings about such plans.

“My first thought is that I like repricings because it does provide our customers with a better value, where they can get the same title for less money and enjoy a better margin,” said Kirk Kirkpatrick, president of video at wholesaler WaxWorks VideoWorks. However, the studios “are repricing a little quickly on some, but they want to get the fourth quarter going.”

One retail executive was less enthusiastic about studio repricings in general, blaming them for unnecessarily encouraging customers to delay purchasing. The executive wishes pricing promotions were shorter in duration.

“Customers get in the habit of seeing the price go down and down, and they’ll get in the habit of waiting longer to buy,” the executive explained. “If you can do something that is very short-term, that will give customers a reason to buy.”


Overall, it sounds like things are moving in the right direction for us consumers. That's great. But, could somebody explain what the F this person is talking about?!??

Quote:
Although retailers hope Warner’s Blu-ray strategy will pay off with boosted sales, some store sources worry that the format is becoming devalued too quickly.

“They are trying to get this software business going,” said one source. “But it’s really a double-edged sword. We’re happy to be able to offer it, but it can be a slippery slope. Consumers might get in the mindset that they want everything discounted. If that becomes the case, we will shorten the life of Blu-ray just like we did with DVD.

WTF do they mean, "shorten the life of Blu-ray just like we did with DVD"? They've been selling millions of DVDs for YEARS?!?!? Did they mean it as in, "shorten the amount of time we as retailers can use it to make giant margins and rake customers over the coals?" What, so now that they only make a couple of bucks on each DVD they sell, they're not interested it anymore? Do they really consider it consider it "end of life" just because the prices are reasonable??!!?

SC
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dbaisey



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Posted: Thu Jul 17, 2008 7:39 pm    Post subject:

From the looks of BR transfer quality 'Clockwork Orange' it isn't even worth the $11. This is my opinion only.
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dropzone7



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Posted: Thu Jul 17, 2008 8:54 pm    Post subject:

dbaisey wrote:
From the looks of BR transfer quality 'Clockwork Orange' it isn't even worth the $11. This is my opinion only.


Doug, I have read similar impressions of this transfer and have avoided it for that reason. From what I understand, the well transferred Kubrick titles in that bunch were 2001 A Space Odyssey and The Shining. As for A Clockwork Orange and Eyes Wide Shut, I hear those did not fair as well. I already own 2001 on HD DVD so probably wont buy that one again. The Shining however is a favorite so I will either get the Blu Ray or find a cheap HD DVD copy.

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dbaisey



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Posted: Thu Jul 17, 2008 9:47 pm    Post subject:

I will go as far a saying 2001 on BR wasn't up to it also but yes it was better. Doug
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MikeEby



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Posted: Thu Jul 17, 2008 11:02 pm    Post subject:

dbaisey wrote:
I will go as far a saying 2001 on BR wasn't up to it also but yes it was better. Doug


Interesting, I thought 2001 was great considering the age of the film.


Mike

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AnalogRocks
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Posted: Thu Jul 17, 2008 11:22 pm    Post subject:

dbaisey wrote:
From the looks of BR transfer quality 'Clockwork Orange' it isn't even worth the $11. This is my opinion only.


Awwww nuts Thumbs Down

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kal
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Posted: Fri Jul 18, 2008 12:45 am    Post subject:

dropzone7 wrote:
dbaisey wrote:
From the looks of BR transfer quality 'Clockwork Orange' it isn't even worth the $11. This is my opinion only.


Doug, I have read similar impressions of this transfer and have avoided it for that reason. From what I understand, the well transferred Kubrick titles in that bunch were 2001 A Space Odyssey and The Shining. As for A Clockwork Orange and Eyes Wide Shut, I hear those did not fair as well. I already own 2001 on HD DVD so probably wont buy that one again. The Shining however is a favorite so I will either get the Blu Ray or find a cheap HD DVD copy.

Not your opinion only Doug. Every online review of Clockwork Orange Blu-ray says that it's not that much better than the DVD. The Shining and 2001 are the two best ones and they're quite good. Full Metal Jacket is also well done. These 3 are worth the upgrade.

Too bad about Clockwork Orange. I was finally looking at adding it to my collection. I find I'm fussier now with Blu-ray and catalog titles. Unless they're pretty much as good as they're going to get, I skip it.

Kal

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wallace123456



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Posted: Fri Jul 18, 2008 1:11 am    Post subject:

Heck, lowering the price is great. But the selctions still suck IMO. I looked thru the upcoming releases through the end of the year and well, I wasn't too thrilled.

I'll say it once again, the roll-out of titles is slowing since hd is out. It would be a shame to see bd format die in favor of "the next big thing".

I think Sony has two speeds: If I don't like the one their at now, I sure aint gonna like the other. Evil or Very Mad

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Gary M.
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Posted: Fri Jul 18, 2008 3:15 am    Post subject:

2001 was nothing short of amazing IMHO, same with Shining

-Gary
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MikeEby



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Posted: Fri Jul 18, 2008 3:35 am    Post subject:

Here are a few screen shots from 2001.











Mike

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dropzone7



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Posted: Fri Jul 18, 2008 12:39 pm    Post subject:

Very nice Mike! Still one of my favorite movies ever. Do you have blue defocus tracking ON in your XG?
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paw



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Posted: Mon Jul 21, 2008 2:49 pm    Post subject: Re: Warner lowers Blu-ray pricing

ecrabb wrote:
WTF do they mean, "shorten the life of Blu-ray just like we did with DVD"? They've been selling millions of DVDs for YEARS?!?!? Did they mean it as in, "shorten the amount of time we as retailers can use it to make giant margins and rake customers over the coals?" What, so now that they only make a couple of bucks on each DVD they sell, they're not interested it anymore? Do they really consider it consider it "end of life" just because the prices are reasonable??!!?

SC


Yep! They're talking profit margin. When you can pick up titles on sale for $10, $7 or even $5, there's not much profit left. True that the manufacture cost are low but you've got lots of hands grease on the way to the end consumer.

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