Quote:
Originally Posted by ack_bak
On new releases they could definitely cut prices, but that is a double edged sword if they do not cut prices on Blu-Ray, downloads, and VOD. The studios want people to move away from DVD. Not cling to it by further price reductions.
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But as you stated so eloquently - these are desperate times.
And DVD represents the lions share of the home video revenue that Hollywood gets.
Hollywood has three "tent poles:"
1. Cinema
2. DVD
3. Television Broadcast
1. Cinema - though the BO pretty much stays the same - the attendance numbers continue to drop and Hollywood makes up for this by yearly increases for a ticket. It is also "quick money." 1 to 2 months.
2. DVD - sales fell 3% last year. This year it could be more depending on Q4 - in a very shaky economy. We also know that the number of titles released has gone down. And it isn't cause they are running out of content to press.
DVD is also quick money - couple of months and they get approx 80+% of the total revenue that title will generate.
3. Television Broadcast - these are done under contracts so there really is no "wiggle" room.
But the studios also own channels and advertising revenue is down and still dropping which affects their bottom line. This is not quick money - stretches out over a longer time period.
HD in the form of DNL or BD or PPV is still in the EA market - high prices - low sales volume. They take time and the path to mainstream is filled with obstacles as we know.
After the "BD Love Fest" that DEG held just a week ago - I am surprised at Sanders comment. If my memory serves me - he was singing a different tune at that event.