I've read a few things about Wal-Mart and realized something.
One of the reasons theatres are having problems is because DVD's are coming out sooner after the theatrical release so some people are waiting for the DVD. Studios now make most of the money from the movie on DVD which creates pressure to release the movies on DVD sooner.
I read that 60% of DVDs in the US are sold at Wal-Mart. Wal-Mart sells DVDs as loss leaders,meaning they sell them for less than normal, sometimes below cost, in order to get people into the store with the assumption (hope?) they'll buy other items. It's a fairly common retail practice.
However if Wal-Mart sells 60% of the DVDs at an artificially low price that means they are creating an artificially high demand. If they sold them at the regular price the demand would be lower, sales would be lower and DVD revenue wouldn't seem as high compared to theatrical revenue.
3 comments:
One may presume however that this method is far more effective than paying a $4 fee to rent the movie and $20 for 50 DVD-R's to burn the disks?
I'm not sure I understand your comment. Pirating the movies is not the same as selling legal versions cheap. Pirating hurts theatres, retailers and the studios.
Which is exactly the point - Better that the theatres, retailers etc get at least SOME money rather than just stealing the movies
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