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Old 01-31-2008, 05:35 PM   #1
zipbags zipbags is offline
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Default How much inventory could they really have?? (re:Uni & Paramount)...

I keep reading that Universal & Paramount are holding back in a bid to sell off inventory. But, seriously. How much inventory could they have? Transformers sold a few 100k copies. It is not like dvd where we are talking millions of copies of one title. I understand they will loose money. But, they could right them off as a loss or just dump them at cost. They are losing millions in revenue now by not providing their product to over 60-70% of the market. And also holding back potential future revenue by the fence sitters.
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Old 01-31-2008, 05:46 PM   #2
TheRealBob TheRealBob is offline
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Quote:
Originally Posted by zipbags View Post
I keep reading that Universal & Paramount are holding back in a bid to sell off inventory. But, seriously. How much inventory could they have? Transformers sold a few 100k copies. It is not like dvd where we are talking millions of copies of one title. I understand they will loose money. But, they could right them off as a loss or just dump them at cost. They are losing millions in revenue now by not providing their product to over 60-70% of the market. And also holding back potential future revenue by the fence sitters.
I suspect that is just speculation, which is mostly unfounded. There's just not that much money at stake to make it worth worrying about.

Having said that, I think they want a proper transition to Blu-ray, so there's no need for them to tank the market for their HD DVDs in the meantime, insignificant as it is. A bigger factor is probably that they don't want to upset retailers by sticking them with a bunch of stock they can't sell.

I suspect they'll end up minimizing the titles they release and printing smaller runs of them. I think they'll also be very conservative about how many discs they make if they need to replenish stock for any of their titles. They know once they announce they're supporting Blu-ray, even if they don't drop HD DVD at the same time, the market for HD DVD is going to go into a nosedive.
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Old 01-31-2008, 05:47 PM   #3
mystiksuicide mystiksuicide is offline
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I have come to this conclusion... anybody that still supports hd dvd must be
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Old 01-31-2008, 06:37 PM   #4
nycomet nycomet is offline
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Paramount and Universal will use any HD-DVD losses as tax write offs anyway.
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