Originally Posted by chipvideo
Blu-ray is not hugely profitable. It is a financial disater. You can sugar coat it all you want it is not a success financially to anyone.
Is that so?
Lets use some common sense and think about it for a moment.
Blu-ray has huge margins for a mass market high volume retail consumer good and even at its current magnitude it already dwarfs most consumer good retail product categories.
Take a recent week.
2.59 Million Blu-ray units that week at order of magnitude of $15 in receipts to the studios for a seven day period.
You do the math.
Blu-ray already has accumulated around $6 billion in sell through software revenues alone with hundreds of millions more in hardware and rental revenues. Much of that is profit to the studios and their retail partners.
Plus Sony's revenue stream from the PS3 with Blu-ray drives built in.
Plus Blu-ray is obviously profitable enough per title released so that the studios continue to increase the rate of Blu-ray releases over time and keep on producing Blu-ray titles. With around 6000 releases already studios and retailers see profits for Blu-ray releases that keep them releasing more and more Blu-ray titles over time at an ever increasing rate. More and more Blu-ray is being placed at retail inventory and retailers find Blu-ray skus more profitable than the DVD skus it displaces. Studios would not release and retailers would not stock Blu-ray Discs unless it was profitable.
Plus Blu-ray is profitable enough that consumer electronic manufacturers keep on making Blu-ray players, retailers keep stocking them at stores and consumers keep on buying them.
Obviously, somebody is making money on Blu-ray or we would not see it as an actively sold mass market consumer item that is growing year after year.
Common sense applies.
Blu-ray may not be as profitable or as large or growing as fast as some might have hoped, but to say its not a success financially for anyone is more than a stretch. Sony invested most in the development of Blu-ray and its certainly arguable if that was the best financial decision for Sony's sake.
But most Blu-ray supporting companies did not invest anywhere near as much and clearly see Blu-ray as a financially successful product that is generating profits for them on a routine basis and that's why they continue to support Blu-ray and release new Blu-ray skus into the marketplace on a annual monthly quarterly and annual basis.