Video Asylum

You need to keep things in perspective

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Jack G

In Reply to: RE: They still are.. posted by Jazz Inmate on September 04, 2007 at 16:34:23

Paramount made roughly $1.5 Billion last year. The best selling HD discs (300) have only sold a couple hundred thousand copies. Only a few broke 100,000. Some sell in the tens of thousands, but many don't even sell 1,000 discs.
Remember:
DVD=99%
BD=0.6%
HD DVD=0.4%
From the beginning to the end of July, there have only been 3.7 Million discs sold by both formats combined (2.2M BD, 1.5M HD DVD).
We aren't talking big bucks here. Paramount may have given up the equivalent of pocket change now, for bigger gains down the road (cheaper replication costs, better infrastructure etc.). Time will tell if they were right.
Jack

Edits: 09/05/07

Follow Ups:

I was just replying to your series of posts about how it's more expensive to manufacture blu-rays - Jazz Inmate 09:44:00 09/05/07 (3)
I wholeheartedly agree about perspective. So if you know that, why is this tiny manufacturing issue a blip on your radar?
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"I have found that if you love life, life will love you back." -Arthur Rubinstein (1887-1982)
- RE: I was just replying to your series of posts about how it's more expensive to manufacture blu-rays - Jack G 10:21:27 09/05/07 (2)
  > > > So if you know that, why is this tiny manufacturing issue a blip on your radar? < < <
  Good question. My answer is, that I'm not convinced they can solve the problems satisfactorily. The BDA has been working on this for quite a few years now, and *still* the issues remain. If they don't fix the problems soon, its going to hit the fan when the subsidies run out.
  Jack
  - I guess the worry is they've run up against a manufacturing snag technology cannot solve. - oscar 10:50:15 09/05/07 (1)
    That wouldn't be very good news at all for Blu-ray (unless they go back to 25G disks).
    - or that its not really viable (nt) - Jack G 13:26:42 09/05/07 (0)
      .
That 1% is potentially a very juicy plum ;-) - 4season 09:13:35 09/05/07 (1)
I imagine that if the movie studios can bring down costs to produce a Blu-Ray or HD DVD movie sufficiently low, they could be looking at very very nice margins because these movies typically command much higher prices, whereas standard DVD sales are in a slump, and prices are discounted. It's like Apple and iPhone: There, the company's goal is to capture 1% of the USA mobile phone market, and that might not seem like a lot, until you realize it's the choicest part of the market where there's serious money to be made.
- It has much bigger growth potential, that's for sure - Jazz Inmate 09:45:42 09/05/07 (0)
  And that's what shareholders like to see--growth. DVD is a cash cow, but it is a mature market.
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  "I have found that if you love life, life will love you back." -Arthur Rubinstein (1887-1982)

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