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#122 |
Senior Member
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#123 |
Blu-ray Guru
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#124 |
Blu-ray Knight
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Who remembers Jewdy-Rose?.
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#125 |
Hot Deals Moderator
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#126 |
Blu-ray Guru
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Ok, I'm trying to understand the logic of these Twilight Time releases. They sell 3,000 copies at 30 bucks a pop. That's $90,000. Now how much would the license for the film cost? Less than $50,000? then the production run cost. How much profit are they actually making in the end? $20,000-$30,000? Is that really worth it to them?
Anyway, with no additional features and the price tag, I'm content with my DVD. It's got plenty of goodies and it looks fine up-converted. |
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#128 | |
Special Member
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#129 | |
Blu-ray Knight
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But make sure to check Return of the Living Dead. |
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#130 | |
Active Member
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#131 | |
Special Member
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So let's just play around. Say the profit is 20-30 thousand per title... they intend to do something like 20-30 releases a year, right? Even if it's just 20-30k per film... that amounts to $400,000.00 (20 titles per year at 20k profit per title) $600,000.00 (30 titles per year at 20k profit per title) $600,000.00 (20 titles per year at 30k profit per title) $900,000.00 (30 titles per year at 30k profit per title) All in 1 calendar year. That's a very large profit for a company with little to no overhead costs. They also don't have to do any advertising because it all relies on word of mouth online. It's a genius business model, to be honest. That's just assuming they profit only 20-30k per title. Suppose they're licensing these films for cheaper in bulk with a lower production cost... they could be making quite a bit of extra change. Then add the traffic it drives to their site. Just visiting I happened across a handful of soundtracks that caught my eye. I'm sure these titles will help boost sales across the board by getting more people to visit the site that otherwise may never have. |
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#132 |
Special Member
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It sometimes has many glitches, etc. Probably not the best server or ready to deal with high traffic but it's not like it's unsafe from what I hear. They're a reputable company... I don't have any concerns about my private information leaking out, for example.
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#133 | |
Blu-ray Ninja
Jan 2010
North Augusta, SC
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So... in order to get to that level you are talking about by selling-out in quantity multiple titles... they would have to be able to rely on sellouts... and to this point, that's not something they have proven will happen. I think most of us figure Night of the Living Dead to sellout... but that might be their only sellout this year. Yes, some other older titles are coming close to sellout apparently... but those are titles they released last year... so if it takes you 2 years to sellout, then that "calendar year" profit table would have to be divided in half. |
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#134 | |
Special Member
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Being that before these "limited" titles they sold mostly film scores, etc... it's not like it can hurt their business. Even if it takes 2-4 years to "sell out" of a given one, it'll happen eventually... and they have 3 years at LEAST before a competitor can release the same title. If you do a check on their apparent stock by adding the maximum to your cart you get the following on their currently available stock (release dates in parenthesis) -- this tells me that within a 2 year window many of these WILL sell out. Some faster than others but still. Egyptian - 887 (6/12/11) Mysterious Island - 519 (11/8/11) Fright Night - SOLD OUT (12/13/11) Rapture - 372 (12/13/11) Picnic - 2084 (1/17/12) Roots of Heaven - 2349 (1/17/12) Swamp Water - 1220 (2/14/12) Pal Joey - 1299 (2/14/12) Demetrius and the Gladiators - 1013 (3/8/12) Bite the Bullet - 1347 (3/8/12) Desiree - 1413 (4/10/12) Bell Book and Candle - 1109 (4/10/12) Journey to the Center of the Earth - 676 (5/8/12) The Big Heat - 620 (5/8/12) As Good As It Gets - 2179 (6/12/12) The Wayward Bus - 1742 (6/12/12) For a company that mostly sells film scores and other niche items it's a solid business investment. Obviously that depends on how much it actually costs to license these titles (I'm guessing lower than some people expect.) I'm actually surprised at how low AGAIG is selling. Perhaps it's not such a surprise Sony licensed it after all. |
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#137 |
Hot Deals Moderator
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#138 | |
Blu-ray Ninja
Jan 2010
North Augusta, SC
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IF you assumed $30 per movie at 3000 copies, then that $90,000.00 contains $70,000.00 of expenses factoring in your $20,000.00 profit margin. That's only true if they sellout... So, the best way to look at it is from the other direction... Using your figures, they have to sell 2333 of the 3000 copies to break even at that profit margin... So... any movie with more than 667 copies left in stock has NOT made any profit yet for the company... That means right now only 4 out of 16 movies has turned a profit... with only one complete sellout. Again, we are working with guess-timates so maybe their profit margin is better than your numbers... but if not... then it really isn't a good model to have 75% of your business venture losing money is it? Yeah, I know they sell other things... but they have to sell more of those things to make up the losses on the movie side if this rate continues. Also... even if they do sell-out at some point in the 3 year cycle of exclusivity... they had to pay out all of their expenses in advance (the licensing and the replication costs and stuff)... so getting that money back on sales in year 2 or year 3 isn't worth as much as having that money in year 1. |
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#140 | |
Blu-ray King
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