72% jump in catalog purchases

[KingBing]

Keep em coming!!

[Clark Kent]

Originally Posted by Woody

Blu-ray is in a conundrum.

Masses won't buy it unless it's cheap.

The rapidity of the price erosion on both players and movies concerns me.

Blu-ray was brought about to make studios and CE manufacturers $$. At the rate we are going it isnt going to make sense for them if the margins are the same terrible margins on DVD AND they cost more to make.

Price erosion is fine on a normal scale but that rate at which blu-ray has HAD to drop to build market share is alarming.

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.

[Good Intentions]

This really isn't too much of a surprise, we've gotten some nice catalogue titles released in the past year. The only place for sales to go was up since the studios were slow releasing some of these titles.

[Terjyn]

Originally Posted by DetroitSportsFan

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.

[blueshadow | Kosty]

Originally Posted by Terjyn

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.

[coolmilo]

Originally Posted by DetroitSportsFan

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.

[Jeff Kleist]

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