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kal
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Tom.W
Joined: 09 Mar 2006
Posts: 6635
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| Posted: Wed Jun 03, 2009 5:22 pm Post subject: |
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50 % off a Blur ray movie = $20 ? Bring back HDDVD !
Sorry just venting....
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kal
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| Posted: Wed Jun 03, 2009 9:10 pm Post subject: |
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Tom,
Nobody has ever paid full retail (MSRP) for DVDs or Blu-ray, or HD DVD for that matter. The minimum discount you'll see is always about 30%.
So if MSRP is $40 as you'll see on DVD/Blu-ray news sites, places like Amazon will always sell it for 30% off, or $28. 50% off such as recent title is rare.
If HD DVD had won their prices would be the same. They had a lot of bargain basement prices for some time because they were trying to win. To say that prices would be significantly lower if HD DVD had won is simply not understanding marketing/sales 101.
Kal
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greg_mitch
Joined: 03 May 2006
Posts: 5320
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| Posted: Wed Jun 03, 2009 10:01 pm Post subject: |
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| kal wrote: | Tom,
Nobody has ever paid full retail (MSRP) for DVDs or Blu-ray, or HD DVD for that matter. The minimum discount you'll see is always about 30%.
So if MSRP is $40 as you'll see on DVD/Blu-ray news sites, places like Amazon will always sell it for 30% off, or $28. 50% off such as recent title is rare.
If HD DVD had won their prices would be the same. They had a lot of bargain basement prices for some time because they were trying to win. To say that prices would be significantly lower if HD DVD had won is simply not understanding marketing/sales 101.
Kal |
I would tend to disagree. Walmart has shown that lower prices = more profit. I believe that was HD DVD's plan. Whether they were doing it up front to garner market share will never be known. But that blanket statement doesn't really hold up.
I picked up Indian Jones and Eagle Eye at Target within a month of the original release date for something like $13 a piece.
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ecrabb
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Joined: 13 Mar 2006
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| Posted: Wed Jun 03, 2009 10:28 pm Post subject: |
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Greg, Walmart has NOT shown that lower prices = more profit. Sorry, but that's just a silly idea on it's face! In fact, that idea is KILLING profits in the PC industry lately. Have you seen Dell's last quarter results? 290 million net income on 12.3 BILLION in sales. What is that, a 2% margin? Don't figure on doing much reinvestment in your business when you're turning a whopping 2% profit!
No, what Walmart has shown is that LOWER COSTS (at nearly any "cost") means lower prices and lower prices means beating the competition on price and in turn, THAT = profit. Target is also very profitable, and they don't operate on the identical business model Walmart operates on! Just like Dell and HP can make a profit selling lower-end computers, Apple makes a profit selling more expensive higher-quality computers. In short, there is more than one way to skin a cat.
As for the HD DVD vs. BD thing... Kal, it was a well-known fact early-on that mastering and production of Blu-ray was much more expensive than HD-DVD, because it required an all-new production process - of which very few existed. All we heard from the Blu-ray camp was that prices would fall as new mastering and replication facilities came on line. Of course, we responded from the HD DVD camp that the same was true! Anyway, here we are several years later, and I haven't really noticed falling Blu-ray prices on new releases, have you? Nope.
Anybody waiting for cheaper new releases on Blu-ray... Don't hold your breath. It'll be awhile - if ever.
SC
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greg_mitch
Joined: 03 May 2006
Posts: 5320
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| Posted: Wed Jun 03, 2009 11:40 pm Post subject: |
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| ecrabb wrote: | Greg, Walmart has NOT shown that lower prices = more profit. Sorry, but that's just a silly idea on it's face! In fact, that idea is KILLING profits in the PC industry lately. Have you seen Dell's last quarter results? 290 million net income on 12.3 BILLION in sales. What is that, a 2% margin? Don't figure on doing much reinvestment in your business when you're turning a whopping 2% profit!
No, what Walmart has shown is that LOWER COSTS (at nearly any "cost") means lower prices and lower prices means beating the competition on price and in turn, THAT = profit. Target is also very profitable, and they don't operate on the identical business model Walmart operates on! Just like Dell and HP can make a profit selling lower-end computers, Apple makes a profit selling more expensive higher-quality computers. In short, there is more than one way to skin a cat.
As for the HD DVD vs. BD thing... Kal, it was a well-known fact early-on that mastering and production of Blu-ray was much more expensive than HD-DVD, because it required an all-new production process - of which very few existed. All we heard from the Blu-ray camp was that prices would fall as new mastering and replication facilities came on line. Of course, we responded from the HD DVD camp that the same was true! Anyway, here we are several years later, and I haven't really noticed falling Blu-ray prices on new releases, have you? Nope.
Anybody waiting for cheaper new releases on Blu-ray... Don't hold your breath. It'll be awhile - if ever.
SC |
I think you are talking about margins...not profit.
At least...we are talking about different profits?
Profit is the difference between the income of the business and all its costs/expenses.
Margin: The amount of gross profit made when an item is sold.
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kal
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| Posted: Thu Jun 04, 2009 12:17 am Post subject: |
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| ecrabb wrote: | As for the HD DVD vs. BD thing... Kal, it was a well-known fact early-on that mastering and production of Blu-ray was much more expensive than HD-DVD, because it required an all-new production process - of which very few existed. All we heard from the Blu-ray camp was that prices would fall as new mastering and replication facilities came on line. Of course, we responded from the HD DVD camp that the same was true! Anyway, here we are several years later, and I haven't really noticed falling Blu-ray prices on new releases, have you? Nope.
Anybody waiting for cheaper new releases on Blu-ray... Don't hold your breath. It'll be awhile - if ever.
SC |
Agreed. I think it was about (or less) than a $1/title or something to have Blu-ray titles made because of extra fees. In the end it's not much. Would I rather have that money in my pocket? Of course. But regardless of which side would have won, they would have both charged whatever the market would bear.
We're seeing some cheaper catalog titles come out but you're right that the big titles new releases are still considedrably more expensive than regular DVD. Had HD DVD won I don't think we would have been saving a lot of money. All companies are greedy - that's capitalism. As I said before, they'll simply charge whatever they think the market can bear and what maximizes profits.
IMHO it's still cheap entertainment as far as I'm concerned. It costs me about the same to buy a Blu-ray movie that I watch once than for the wife and I go to the movies, never mind babysitting costs, food/drinks, etc. If I watch a Blu-ray more than once, the price goes down even farther.
Kal
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