Paramount's Switch Failed To Turn Market

[JohnGalt]

Originally Posted by reider

It is quite easy actually. You are correct with all your reasoning, but you missing one significant point - overproduction. Unsold balances are getting bigger and bigger and having two formats doubles that expense.

Very good point. But am I right in thinking that these can normally be liquidated for something in excess of the manufacturing and distribution costs plus the per unit portion of marketing & one-time charges? I can't imagine those costs being over a few bucks per disc in volume whereas I can see the prorated fixed costs being nearly equal to the price of a disc for low-volume titles today. Or maybe I'm talking out of my ass again ....