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Old 08-31-2009, 04:04 PM   #1
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Default 72% jump in catalog purchases

BD Prices Fall, Catalog Spending Rises 72%
Posted August 31, 2009 05:37 AM by Juan Calonge

Pricing for BD software has dropped significantly everywhere, fostering an increase in demand and spending. In the US, BD software pricing has fallen more than 10% for new releases and a full one-third on catalog titles since 2008. This has caused spending on theatrical Blu-ray catalog to increase 72% from the same 2008 period. However, retailers would like prices to drop more.
Works for me.
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Old 08-31-2009, 06:28 PM   #2
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Lightbulb BD Prices Fall, Catalog Spending Rises 72%

I say keep this trend going!

BD Prices Fall, Catalog Spending Rises 72%
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Old 08-31-2009, 07:40 PM   #3
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Prices are falling, and sales are going up? No way!
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Old 08-31-2009, 07:42 PM   #4
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Futuresource's Alison Casey confirmed that “Research shows that Blu-ray player owners are making a value judgement call when deciding whether or not to pay the Blu-ray premium”, Casey added, remarking that BD player owners often continued to buy some titles in standard definition.
This seems like the wrong conclusion to me. I can see how someone might make a value call before owning a blu-ray player, but there's no going back once you have experienced the higher quality.

How many of us here decide to buy DVDs over BDs? It seems extremely unlikely to me. We simply shop around for a good price and then buy the blu.

They need to figure out why we buy before they can understand how to developing a marketing strategy.
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Old 08-31-2009, 07:45 PM   #5
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Quote:
Originally Posted by Steve46 View Post
This seems like the wrong conclusion to me. I can see how someone might make a value call before owning a blu-ray player, but there's no going back once you have experienced the higher quality.

How many of us here decide to buy DVDs over BDs? It seems extremely unlikely to me. We simply shop around for a good price and then buy the blu.

They need to figure out why we buy before they can understand how to developing a marketing strategy.
Agreed. I haven't bought a new DVD since going Hi-Def.
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Old 08-31-2009, 07:47 PM   #6
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Quote:
Originally Posted by Steve46 View Post
This seems like the wrong conclusion to me. I can see how someone might make a value call before owning a blu-ray player, but there's no going back once you have experienced the higher quality.

How many of us here decide to buy DVDs over BDs? It seems extremely unlikely to me. We simply shop around for a good price and then buy the blu.

They need to figure out why we buy before they can understand how to developing a marketing strategy.
The people on this forum and other dedicated home theater type forums are not the average consumer. And you have to keep in mind, not everybody is going to drop $20+ on a catalog Blu-Ray title when the DVD is selling for under $10. I think people are also being more frugal due to the economy. I know I am. I rarely drop more than $20 on a movie anymore. I just wait for a sale.
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Old 08-31-2009, 07:50 PM   #7
Steve46 Steve46 is offline
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Quote:
Originally Posted by ack_bak View Post
The people on this forum and other dedicated home theater type forums are not the average consumer. And you have to keep in mind, not everybody is going to drop $20+ on a catalog Blu-Ray title when the DVD is selling for under $10. I think people are also being more frugal due to the economy. I know I am. I rarely drop more than $20 on a movie anymore. I just wait for a sale.
I take your point. There are certainly cases in which people will buy the DVD. Perhaps a Disney title for their child?

But I refuse to believe that people "often" buy DVDs over blu due to price. They hunt for a good price, wait, or buy used instead.

I have bought 196 blu's this year, and 1 DVD (a present for someone who doesn't have a blu-ray player).
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Old 08-31-2009, 11:49 PM   #8
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Originally Posted by ack_bak View Post
The people on this forum and other dedicated home theater type forums are not the average consumer. And you have to keep in mind, not everybody is going to drop $20+ on a catalog Blu-Ray title when the DVD is selling for under $10. I think people are also being more frugal due to the economy. I know I am. I rarely drop more than $20 on a movie anymore. I just wait for a sale.
most of the people that I know (if not all) that have moved to BD have stopped buying DVDs. It is not limited only to people on this forum. Also I think you miss one big thing. If the guy wants the BD then he buys it when it comes out (or drops a bit in price) but if he is happy to pay 10$ for a catalogue title on DVD then chances are that he bought it some time ago. If it is a movie he wanted, why would he wait to buy the DVD when the BD comes out?
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Old 11-19-2009, 04:33 PM   #9
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Quote:
Originally Posted by DetroitSportsFan View Post
Prices are falling, and sales are going up? No way!
+1. I knew as soon as the prices got reasonable they would sell like hotcakes.
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Old 11-19-2009, 04:47 PM   #10
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Keep em coming!!
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Old 11-22-2009, 12:41 AM   #11
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Quote:
Originally Posted by DetroitSportsFan View Post
Prices are falling, and sales are going up? No way!
What I want to know is are profits going up, which is not nearly as guaranteed as sales going up.

Of course they'll never talk about that, it'd give to much insight into the industry.
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Old 11-22-2009, 01:12 AM   #12
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Originally Posted by Terjyn View Post
What I want to know is are profits going up, which is not nearly as guaranteed as sales going up.

Of course they'll never talk about that, it'd give to much insight into the industry.
Blu-ray is far more profitable per unit sold for the studios. If the Blu-ray retail pricing is order of magnitude 50 cents more than DVD pricing for the same title profits for someone are going up. Any Blu-ray unit sold is more profitable than a DVD unit if it selling for more money as the incremental production costs are much smaller than the increase in the retail price. Blu-ray disc production is still a bit more but steadily dropping but Blu-ray packaging costs are actually less than DVD due to standardized and simpler Blu-ray artwork and packaging casework. Retailer profitability can vary based on their negotiated acquisition costs but someone is making more profit per Blu-ray unit sold.
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Old 11-22-2009, 01:32 AM   #13
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Quote:
Originally Posted by DetroitSportsFan View Post
Prices are falling, and sales are going up? No way!
The problem is it looks like the prices are going back up (see January releases). I was sort of hoping the recent pricing model would stick.
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Old 11-22-2009, 02:14 AM   #14
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That was the goal at first, to reintroduce a product with higher margins than dvd. But the studios have internal projections telling them the dvd market will soon be reduced to nothing. Reduced margins on Blu-rays are better than no margins on dvd sales.
That's an exaggeration big time. Like it was during the boom? Hell no. Anyone with half a brain knew that wouldn't last because eventually people would have replaced their library
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Old 08-31-2009, 10:15 PM   #15
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This is great news, but it also has been expected. Every quarter you're going to see BD sales increase by a pretty solid margin with prices falling. Blu-ray continues to show that it's the best way there ever has been to watch film and TV shows. As more and more consumers adopt the format into their homes, the stronger a hold Blu-ray will have on the market. It's going to be the dominate format for a very, very, very long time. And that should make us happy.
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Old 08-31-2009, 10:53 PM   #16
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Hopefully there will be some good deals on players and movies for the holiday season. We need to increase Blu adoption.
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Old 08-31-2009, 10:56 PM   #17
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It looks to me like many of the studios are making a conscious effort to get some new catalog titles out in the marketplace at bargain prices. Not the better releases of course, but Lionsgate is selling a few new catalog titles for $9.99 at Target. Of course that does not even mention the $10 selection at Wal-Mart.

This is all good, and gets consumers into the habit of buying rather than renting Blu-rays.
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