Video Asylum

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What are the profit margins on the discs?

Posted by Jack G on December 10, 2007 at 07:54:49:
I'm sure studios are looking at disc sales, but I bet they are also looking at the profit margins of each, both now and in the future for the bigger picture. How long are replication fees going to be subsidized? How much will it cost when Sony stops subsidizing BD replication? Sales numbers? I'm sure they are looking at sales of BOGOs Vs. normal pricing-which do you think makes them happier?
I'm sure the studios are painfully aware that only 4 million BDs (despite all the PS3s) and 2.5 million HD DVDs sold since inception. They are also aware that catalog sales aren't doing squat, which is probably one of the main reasons they went HD. Its not a pretty picture overall.
Just my 2 cents.
Jack