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Optical (Blu-ray/DVD) and Digital (EST/UV) Sales Thread

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Old 08-22-2012, 08:23 AM   #3571  
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Originally Posted by GizmoDVD View Post
There was a $3 difference between SKUs at Best Buy and Target.

$3.

If that makes a difference to Lionsgate....well, they have bigger issues to worry about (plus Blu-ray discs are more expensive to produce over DVDs)
A better question is how much of that $3 is Lionsgate seeing on their end. For that matter, what is difference in wholesale price per sku unit between the dvd and bluray versions that BB, Target, WalMart, etc ... are seeing.
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Old 08-22-2012, 08:29 AM   #3572  
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Although I do have to say Morris that you have added a lot to this forum since you have been here and appreciate hearing your opinion and commentary.
Thanks.

Most of my commentary is stream of consciousness type of thinking in the moment, from a completely outsider perspective.
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Old 08-22-2012, 08:47 AM   #3573  
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Something I haven't heard from insiders (or semi-insiders), is how the distribution system of dvds/blurays functions these days.

Many years ago I knew a few semi-insiders who worked in the music cd and book businesses.

The book semi-insiders mentioned that many books on the shelves at bookstores (such as Barnes & Nobel), are sold on consignment from the publisher/distributor. (Technically the bookstore doesn't own many of the books on their shelves). If a particular book doesn't sell, it goes straight back to the publisher/distributor's warehouse.

The music cd semi-insiders mentioned that record stores (when they still existed) usually paid wholesale for the titles they stocked. The store owned the records, cassettes, cds, etc ... they had on their shelves. But unsold titles could be returned to the distributor for credit towards future orders.

It would be interesting to know whether the dvds/blurays distribution system, functions like a bookstore (consignment) or like a record store.

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Old 08-22-2012, 08:59 AM   #3574  
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A better question is how much of that $3 is Lionsgate seeing on their end. For that matter, what is difference in wholesale price per sku unit between the dvd and bluray versions that BB, Target, WalMart, etc ... are seeing.
I think both version were discounted proportionally the same (or close to it), so I would guess the net margin for the studio is between $1-2.
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Old 08-22-2012, 09:00 AM   #3575  
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Originally Posted by GizmoDVD View Post
There was a $3 difference between SKUs at Best Buy and Target.

$3.

If that makes a difference to Lionsgate....well, they have bigger issues to worry about (plus Blu-ray discs are more expensive to produce over DVDs)
It must have made a difference otherwise why would the VP have mentioned it in the press release? He didn't have to mention any details in his statement. They seem pleased with the sales numbers so far and they have received a lot of positive press over the numbers coming in.
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Old 08-22-2012, 09:04 AM   #3576  
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It must have made a difference otherwise why would the VP have mentioned it in the press release? He didn't have to mention any details in his statement. They seem pleased with the sales numbers so far and they have received a lot of positive press over the numbers coming in.
Because they are trying to garner PR? You've been posting here a long time....you should know how this works.
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Old 08-22-2012, 09:06 AM   #3577  
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Quote:
Originally Posted by GizmoDVD View Post
There was a $3 difference between SKUs at Best Buy and Target.

$3.

If that makes a difference to Lionsgate....well, they have bigger issues to worry about (plus Blu-ray discs are more expensive to produce over DVDs)
That's about the same difference between the DVD and BD combo (sometimes it's $5, sometimes $1). That's why the Blu-ray combo shares are so high, since only for a couple of bucks more the DVD buyers can future proof their purchase. But paying $3 more for a version they can't play at home (BD-only) is not very appealing.
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Old 08-22-2012, 09:10 AM   #3578  
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Because they are trying to garner PR? You've been posting here a long time....you should know how this works.
Yep I also know if the numbers are poor they usually don't mention them at all. Lionsgate, the company that released the film and released the DVD,BD and digital are "Pleased". The press also indicates such. Other than being a shareholder in that company, who am I to question that?
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Old 08-22-2012, 09:20 AM   #3579  
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I agree that they are probably not displeased with the overall numbers (otherwise they wouldn't have reported them. But then again, NOT reporting them could raise a red flag so it's possible they were somewhat disappointed and are spinning the results as positive).

However I'm not buying that they think the 34% Blu-ray share is "remarkable", unless they are accounting for it not being a combo and knew full well the Blu-ray share would plummet by not having it be a combo. ALL Blu-ray combos of this type are over 50% these days. NO exceptions.
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Last edited by bruceames; 08-22-2012 at 09:26 AM..
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Old 08-22-2012, 09:31 AM   #3580  
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I agree that they are probably not displeased with the overall numbers (otherwise they wouldn't have reported them. But then again, NOT reporting them could raise a red flag so it's possible they were somewhat disappointed and are spinning the results as positive).

However I'm not buying that they think the 34% Blu-ray share is "remarkable", unless they are accounting for it not being a combo and knew full well the Blu-ray share would plummet by not having it be a combo. ALL Blu-ray combos of this type are over 50% these days. NO exceptions.
Yes all good points Bruce.
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Old 08-22-2012, 09:43 AM   #3581  
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However I'm not buying that they think the 34% Blu-ray share is "remarkable", unless they are accounting for it not being a combo and knew full well the Blu-ray share would plummet by not having it be a combo. ALL Blu-ray combos of this type are over 50% these days. NO exceptions.

I don't know if the data is publicly available, but it would be interesting to go back several years to before bluray/dvd combo packs were common, and see whether the bluray-only sku share is around 33% in comparison to the dvd-only sku share for the then-new releases.

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Old 08-22-2012, 09:46 AM   #3582  
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I don't know if the data is publicly available, but it would be interesting to go back several years to before bluray/dvd combo packs were common, and see whether the bluray sku share is around 33% in comparison to the dvd-only sku share.
I was not happy to find that my BD of Hunger Games that i purchased from Amazon wasn't packed with a DVD. I thought I ordered one with DVD/BD and UV. I'm surprised they didn't have a trio version available.
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Old 08-22-2012, 10:01 AM   #3583  
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Perhaps after all is said and done, this Hunger Games case shows that movie companies may be resigned to the notion that the only way to increase/maintain sales of the bluray version to a 50% share, is to piggyback it with a dvd copy in the form of combo packs. Basically bluray combo packs cannibalizing the dvd-only sku version to gain that 50% bluray share.

Better to have that 50% share of bluray skus stock moving, than to only have a 33% share of bluray-only skus stock moving.


Perhaps this is possibly why Lionsgate didn't even publicly bat an eye, when the bluray-only share turned out to only be 34% ?

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Old 08-22-2012, 10:09 AM   #3584  
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Originally Posted by morriscroy View Post
I don't know if the data is publicly available, but it would be interesting to go back several years to before bluray/dvd combo packs were common, and see whether the bluray-only sku share is around 33% in comparison to the dvd-only sku share for the then-new releases.
That wouldn't work because Blu-ray's share is growing about 5-6 percent per year. We have data for Blu-ray shares going back to the beginning of 2009 but back then they were around 10% or so.

It is interesting to track not only the rate of Blu-ray's growth within itself, but also the market share growth. It has slowed somewhat this year for the first time (only about 3-4% higher this year than at this time last year) and that's a troubling sign because normally the market share growth rate of new video formats accelerate until they are clearly the majority format.

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Old 08-22-2012, 10:17 AM   #3585  
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It is interesting to track not only the rate of Blu-ray's growth within itself, but also the market share growth. It has slowed somewhat this year for the first time (only about 3-4% higher this year than at this time last year) and that's a troubling sign because normally the market share growth rate of new video formats accelerate until they are clearly the majority format.
Going back into history, wonder what year the VHS sku share reached 50:50 with the dvd sku share, for then-new releases.
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