Why do some movies come down in price?

[jw]

Its the same way with video games, cant have inventory just sitting around.

And for a lossleader, that usually only applies for "sales ad" items to get you in the store, not the EDLP . Typically a studio sets the MSRP of a movie at say 39.99, stores offer a discount from that(usually depends on margins) to the EDLP, after that usually within the first week they have the loss leader sales to get you to buy it from Store A vs Store B. Happens more with DVDs than blus as there is a higher demand at this point.

Wal-Mart is great example that I know of, they track those aisle displays weekly and if they arent selling, they are removed and refreshed with an item that will sell better. Sometimes a promotion is applied to it as well and gets the item moving.