Video Asylum

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RE: Blu-ray DVD’s are still too expensive

Posted by JohanV on March 9, 2010 at 14:53:39:
From a marketing prospective you have to look where they earn their money and that is not with the hardware because it is enabling technology and the margins are very low, say something like 3%. I think the cost price of a Blu-ray disc is probably less than one dollar so selling the product for €30 including 19% sale tax makes a lot of money for the big media companies. For example, Sony sells flatscreens and Blu-ray players but Sony also provides the content with their media company Columbia. So that is how they do it with the Blu-ray discs.
Cheers, Johan