Video Asylum

Of course the question is...

64.12.116.195

DavidLD

In Reply to: RE: The problem is can they maintain it ? posted by oscar on November 07, 2007 at 08:58:10

Are the printer cartridges profitable enough to sell the printer at a loss?

Are the HD disks profitable enough for Wal Mart to sell the player at a loss? In selling each $99 player, Wal Mart has created a potentially long stream of profits from the sale of HD formatted disks, disks that would not have sold at all otherwise.

If the disks are to sell people have to have a player.

If Wal Mart sells groceries at a loss, it drags people into stores past more profitable merchandise with a higher margin. Sneaky people, those retailers.

D

Follow Ups:

RE: Of course the question is... - Jack G 05:09:49 11/08/07 (0)
If you assume for the moment just for giggles, that there will be only one format, and it will be adopted by the masses, then the big bucks will be in the patents and licensing fees. Potentially billions over the years.
Jack
Groceries are where they make money.... - oscar 16:12:13 11/07/07 (2)
Cheaper to shop at "mainstream" grocery stores...

Also, Wal-Mart, other retailers, and the studios want to maximize profits on software sales. Which means they need to keep the prices up wrt to DVD. Fine balancing act that. If Wal-Mart drops the HD media prices too much, the studios won't want to "play". OTOH, if they keep the prices high, it turns the J6P crowd away from HD media; DVD upsamplers would remain highly attractive. At the moment HD media prices are too high.
- CD was 2x the cost of LP yet it sold brilliantly - 4season 19:37:36 11/07/07 (1)
  Folks will pay a premium if they feel they're getting their money's worth--plus a little extra. And it's a very affordable little luxury too: Just a few extra bucks here and there.
  - Upsampled DVD will be "good enough" for a lot of people... nt - oscar 05:14:59 11/08/07 (0)
    .

Post a Followup:

FAQ

Post a Message!

Forgot Password?

Moniker (Username):
Password (Optional):
	Remember my Moniker & Password (What's this?) Eat Me
E-Mail (Optional):
Subject:

Message:	(Posts are subject to Content Rules)

Optional Link URL:
Optional Link Title:
Optional Image URL:
Upload Image:
E-mail Replies:	Automagically notify you when someone responds.

To view your new posting or follow-up, click on the RELOAD or REFRESH button on your browser.

This post is made possible by the generous support of people like you and our sponsors:

VH Audio