Originally Posted by Tulpa
And what the consumer is willing to pay. If no one would pay the $6 for an HDX VUDU movie, they'd either drop their prices or close up shop tomorrow.
I'd guess VUDU is not profitable or at least marginally if so .. but with the Walmart cash behind them, it's still trying to build that niche ..
If streaming is the future, then to make it grow as a medium, the price to rent must come down .. in order to convince the renter that they are better off with streamed delivery, and thus grow the customer base, when cheap disk rentals have become so popular (fueled the growth of NF as well as RB) ...
All I'm saying is if a $2.00 high quality stream on a solid new release were available, then it would expand the market .. and volume, if nothing else, would make up for lower pricing, regardless of the infrastucture cost ..
The reason the $6.00 stream / VOD is not replacing the disk is for those same reasons .. bring the price down and it will grow exponentially ..
I have no idea what the ultimate plan of the studios is .. but you can bet they have a plan ..