Is the ultimate replacement of DVD the true litmus test?
Even with a small user base, does an extra 20% revenue on a new release justify authoring a Blu-Ray release?
I think at this point, blu-ray has already established itself as a revenue vehicle for Studios and new release. All signs still point to a continuing (albeit slower than expected ) increasing in user base. It would be unlikely for studios to discontinue releasing blu-ray titles at this point, and therefore severing a potential high-margin revenue stream.
it's the pricing on movies, which on catalog titles and other ones, at $35-40 is just too darn high. Yes it gives studios more income. but when on a back catalog you take a movie sold for $10 or $15, and price it for $35-40 list price, as Fox does, consumers balk at those higher prices.
these HD Blu-Ray discs should be no more than $5 more than their comparable DVD versions. in this economy people don't want an HD Tax.
+1 Agree 100%, player prices are beginning to drop but software prices need to drop as well. Even enthusiasts are generally not willing to pay $35-40 (or $20-$25 online) for catalog titles.
There are several things that stand in the way of lower BD prices though:
1. Expectations of higher quality make mastering a BD more expensive than mastering a DVD. 2. There are higher material costs involved in pressing BDs, due to the shortage of presses and the slightly more expensive nature of BDs themselves (lower yields due to higher density, plus requirements for protective coatings etc.) 3. Patent royalty rates on BDs is considerably higher than it is for DVDs. 4. Budget DVD titles tend to cut costs like omitting DRM. This cost saving isn't possible with Blu-ray, as DRM is mandatory.
and... the kicker...
5. One of the entire points behind Blu-ray is to introduce a new revenue stream as profits on DVDs aren't anything like what they were.
In the end, the studios and the CE manufacturers are going to blame each other for the high prices, but budget titles really aren't coming any time soon. What we've seen with discs is the same as what's happened with players - every now and again BD users get excited because of a promotion where products are being sold off cheaply, often as a close-out deal, and assume this means that prices have actually fallen. You can get a Profile 1.1 Blu-ray player that the manufacturer is trying to get rid of for under $200 if you shop around. Likewise you can find an old BD title that's been on shelves for a year for under $15.
But those are the exceptions. Those are the equivalents of $5-10 DVDs and $20 DVD players, which you can find too by looking hard enough. The real cuts are not here yet, and there's only so far media prices can fall.
1. This doesn't justify cost increases... they have the source film/files. aside from upfront costs of new editing materials this shouldn't change much at all. 2. Very True largely why so many wanted HD DVD 3. This doesn't have to be... those who hold those royalties will eventually lower thier rates once they see prices can't go much lower. 4. Good point... i wonder they will give up on DRM... (costs more to implement and is useless) 5. I don't think so... you think that they started making HD TVs 10 years ago to help make up lots revenue for Hollywood?
your last point is spot on. In a years time, we'll start see great titles that came out this year at reasonable prices... this is no different than how DVD played the game. Frankly BD is doing quite well all things considered. DVD didn't have this type of competition.
Reader Comments (Page 1 of 1)
Okeygrak @ Jan 5th 2009 10:57AM
Is the ultimate replacement of DVD the true litmus test?
Even with a small user base, does an extra 20% revenue on a new release justify authoring a Blu-Ray release?
I think at this point, blu-ray has already established itself as a revenue vehicle for Studios and new release. All signs still point to a continuing (albeit slower than expected ) increasing in user base. It would be unlikely for studios to discontinue releasing blu-ray titles at this point, and therefore severing a potential high-margin revenue stream.
mitchelljd @ Jan 5th 2009 11:02AM
it's the pricing on movies, which on catalog titles and other ones, at $35-40 is just too darn high. Yes it gives studios more income. but when on a back catalog you take a movie sold for $10 or $15, and price it for $35-40 list price, as Fox does, consumers balk at those higher prices.
these HD Blu-Ray discs should be no more than $5 more than their comparable DVD versions. in this economy people don't want an HD Tax.
Tim @ Jan 5th 2009 11:27AM
+1 Agree 100%, player prices are beginning to drop but software prices need to drop as well. Even enthusiasts are generally not willing to pay $35-40 (or $20-$25 online) for catalog titles.
squiggleslash @ Jan 5th 2009 11:50AM
There are several things that stand in the way of lower BD prices though:
1. Expectations of higher quality make mastering a BD more expensive than mastering a DVD.
2. There are higher material costs involved in pressing BDs, due to the shortage of presses and the slightly more expensive nature of BDs themselves (lower yields due to higher density, plus requirements for protective coatings etc.)
3. Patent royalty rates on BDs is considerably higher than it is for DVDs.
4. Budget DVD titles tend to cut costs like omitting DRM. This cost saving isn't possible with Blu-ray, as DRM is mandatory.
and... the kicker...
5. One of the entire points behind Blu-ray is to introduce a new revenue stream as profits on DVDs aren't anything like what they were.
In the end, the studios and the CE manufacturers are going to blame each other for the high prices, but budget titles really aren't coming any time soon. What we've seen with discs is the same as what's happened with players - every now and again BD users get excited because of a promotion where products are being sold off cheaply, often as a close-out deal, and assume this means that prices have actually fallen. You can get a Profile 1.1 Blu-ray player that the manufacturer is trying to get rid of for under $200 if you shop around. Likewise you can find an old BD title that's been on shelves for a year for under $15.
But those are the exceptions. Those are the equivalents of $5-10 DVDs and $20 DVD players, which you can find too by looking hard enough. The real cuts are not here yet, and there's only so far media prices can fall.
cdpage @ Jan 5th 2009 3:48PM
1. This doesn't justify cost increases... they have the source film/files. aside from upfront costs of new editing materials this shouldn't change much at all.
2. Very True largely why so many wanted HD DVD
3. This doesn't have to be... those who hold those royalties will eventually lower thier rates once they see prices can't go much lower.
4. Good point... i wonder they will give up on DRM... (costs more to implement and is useless)
5. I don't think so... you think that they started making HD TVs 10 years ago to help make up lots revenue for Hollywood?
your last point is spot on. In a years time, we'll start see great titles that came out this year at reasonable prices... this is no different than how DVD played the game. Frankly BD is doing quite well all things considered. DVD didn't have this type of competition.