Warner losing money on every Blu-ray sold? - Blu-ray Forum

Zaphod · 05-08-2008, 12:48 PM

I was just curious, does anyone know what the cost of production is for a studio to produce one unit of any given Blu-ray title?

I was just sitting at work (nothing better to do I guess) and wondering...when I purchase titles directly from Warner, how are they making any money off the Blu-ray title itself? I mean, let's say I purchase 4 catalog titles with the 25% off coupon (making each approx. $14.96). On top of that they all are pre-orders with varying release dates. On top of that the order also qualifies for free shipping.

Now I don't know about everyone else, but EVERY title I order with the free shipping comes UPS Next Day Air. I know there are commercial rates for shipping UPS, and for next day they typically start at around the $5-$6 range. So at this the price in shipping alone for four different titles on four different dates is at least $24.00. Now you figure in the cost of production (whatever that may be), and it seems they are selling these at a loss if not close to breaking even.

Now I know they can subsidize due to the ridiculous profits from DVD sales, but it just seemed interesting to me at the time...

dobyblue · 05-08-2008, 01:42 PM

Studios are making money on any title that sells more than 20,000 copies according to R&B Films.

jw · 05-08-2008, 02:00 PM

They are "wholesaling" that BD to you, I bet they are making a few dollars a disc. There is no middle man or marketing costs associated with the disc like ones from a B&M store

I have actually picked up a few and made a dollar or two from there site last christmas

plee · 05-08-2008, 02:15 PM

Once the authoring/production cost are recouped, the studio begins to make money on every disc sold. That's probably around the 20k figure in the earlier post so once they reach that it's gravy so to speak. Not all titles may reach 20k but there will be some that do alot more so it balances in the end.

jw · 05-08-2008, 02:17 PM

heres a title that may never see 10000....

Title says it all

Musashi · 05-08-2008, 04:45 PM

Variable (aka per-disc) costs on blu-ray are minimal. A 1-press BD-ROM is about $1.50. The shell and papers are cheap too.

Clark Kent · 05-08-2008, 10:52 PM

Warner's online store still makes money on every Blu-ray sold even with their coupons and free shipping. By selling directly to the consumer they cut out the traditional retailer's take on a sale. Warner wouldn't mind if every single movie they sold was through their online store. The studios are doing very well on the profit margins(check out what Lionsgate said it was clearing for new Blu-rays).

Azyiu · 05-09-2008, 03:25 AM

Quote:

Originally Posted by Zaphod

when I purchase titles directly from Warner...

Ok, I know I am out of the loop on this one, so could you be kind enough and post the link here?

Zyclone · 05-09-2008, 04:24 AM

Quote:

Originally Posted by Azyiu

Ok, I know I am out of the loop on this one, so could you be kind enough and post the link here?

http://www.wbshop.com/

Azyiu · 05-09-2008, 04:47 AM

^ appreciated that!

Zyclone · 05-09-2008, 04:56 AM

Quote:

Originally Posted by Azyiu

^ appreciated that!

your welcome

Zaphod · 05-09-2008, 11:42 AM

Quote:

Originally Posted by Zyclone

http://www.wbshop.com/

Hey he wasn't asking you!

Zyclone · 05-09-2008, 12:51 PM

Quote:

Originally Posted by Zaphod

Hey he wasn't asking you!

its not my problem if your to busy doing your job and don't have time to sit around helping people on the net

Azyiu · 05-09-2008, 12:59 PM

@ Zaphod & Zyclone

Thanks both of you!

Everyone happy now?

Zyclone · 05-09-2008, 01:00 PM

Quote:

Originally Posted by Azyiu

@ Zaphod & Zyclone

Thanks both of you!

Everyone happy now?

i suppose so

Anthony P · 05-10-2008, 03:54 PM

Quote:

They are "wholesaling" that BD to you, I bet they are making a few dollars a disc.

exactly, the question seems odd, because it compares prices from other sources (shops) to WB. The shops will need to make their own profit on it, now WB gets 100%

05-08-2008, 12:48 PM	#1
Zaphod Blu-ray Samurai Member since:Apr 2007 Location:A small planet somewhere in the vicinity of Betelgeuse. Blu-ray collection:350 Trading Score:4	Warner losing money on every Blu-ray sold? I was just curious, does anyone know what the cost of production is for a studio to produce one unit of any given Blu-ray title? I was just sitting at work (nothing better to do I guess) and wondering...when I purchase titles directly from Warner, how are they making any money off the Blu-ray title itself? I mean, let's say I purchase 4 catalog titles with the 25% off coupon (making each approx. $14.96). On top of that they all are pre-orders with varying release dates. On top of that the order also qualifies for free shipping. Now I don't know about everyone else, but EVERY title I order with the free shipping comes UPS Next Day Air. I know there are commercial rates for shipping UPS, and for next day they typically start at around the $5-$6 range. So at this the price in shipping alone for four different titles on four different dates is at least $24.00. Now you figure in the cost of production (whatever that may be), and it seems they are selling these at a loss if not close to breaking even. Now I know they can subsidize due to the ridiculous profits from DVD sales, but it just seemed interesting to me at the time...

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05-08-2008, 01:42 PM	#2
dobyblue Super Moderator Top contributor Member since:Jul 2006 Location:Ontario, Canada Home Theater Gallery:71 4K collection:55 Blu-ray collection:655 Blu-ray reviews: 15	Studios are making money on any title that sells more than 20,000 copies according to R&B Films.

05-08-2008, 02:00 PM	#3
jw Blu-ray Archduke Top contributor Member since:Apr 2007 Location:USA Trading Score:519	They are "wholesaling" that BD to you, I bet they are making a few dollars a disc. There is no middle man or marketing costs associated with the disc like ones from a B&M store I have actually picked up a few and made a dollar or two from there site last christmas

05-08-2008, 02:15 PM	#4
plee Senior Member Member since:Mar 2007	Once the authoring/production cost are recouped, the studio begins to make money on every disc sold. That's probably around the 20k figure in the earlier post so once they reach that it's gravy so to speak. Not all titles may reach 20k but there will be some that do alot more so it balances in the end.

05-08-2008, 02:17 PM	#5
jw Blu-ray Archduke Top contributor Member since:Apr 2007 Location:USA Trading Score:519	heres a title that may never see 10000.... Title says it all

05-08-2008, 04:45 PM	#6
Musashi Blu-ray Ninja Top contributor Member since:Jan 2007 Location:Manchester, CT Home Theater Gallery:5 4K collection:25 Blu-ray collection:337 Blu-ray reviews: 1	Variable (aka per-disc) costs on blu-ray are minimal. A 1-press BD-ROM is about $1.50. The shell and papers are cheap too.

05-08-2008, 10:52 PM	#7
Clark Kent Blu-ray Prince Top contributor Member since:Oct 2007 Location:Metropolis Blu-ray reviews:2 Trading Score:184	Warner's online store still makes money on every Blu-ray sold even with their coupons and free shipping. By selling directly to the consumer they cut out the traditional retailer's take on a sale. Warner wouldn't mind if every single movie they sold was through their online store. The studios are doing very well on the profit margins(check out what Lionsgate said it was clearing for new Blu-rays).

05-09-2008, 04:47 AM	#10
Azyiu Blu-ray Champion Top contributor Member since:May 2008 Location:The Center of Smoked Bacon Research 4K collection:7 Blu-ray collection:369 DVD collection:54 Blu-ray reviews: 14	^ appreciated that!

05-09-2008, 12:59 PM	#14
Azyiu Blu-ray Champion Top contributor Member since:May 2008 Location:The Center of Smoked Bacon Research 4K collection:7 Blu-ray collection:369 DVD collection:54 Blu-ray reviews: 14	@ Zaphod & Zyclone Thanks both of you! Everyone happy now?

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