Originally Posted by fookoo_2010
With this economy, most people are trying to save a little bit here or there by doing things like combining store trips. In the large scale of things, BRs
are cheap when compared to what a Betamax would have cost years ago - even when discounted at $40. Here is something that usually costs $millions to make and you can buy it for <$30. How cool is that? This is the golden era for people who love film because of the available inexpensive technologies available today. Aside from the cost, there is the continual problem of all of the dvds and BRs
eating up space.
Except the economics aren't the same anymore.
Computers cost $3K in 1982 - in 1982 dollars. Today, you can buy something 10000x more powerful for $600 in 2012 dollars. Heck, in the 70's, computers cost a couple thousand and you had to put it together your self and screw it to a plank of wood.
My family's first camcorder was a big VHS shoulder cam costing $900. Now I can get a DSLR that shoots HD for $800 or less and will also shoot 18MP photos. A standalone HD camcorder can be had for around $500. You can get a smart phone that fits in your pocket for next to nothing from most providers that will shoot video far better than that monster I owned decades ago.
Technology gets cheaper to produce as manufacturing techniques improve and economies of scale increase.
We've been using optical disc based media since the 80s. Each step from CDs, to DVDs to BD's is merely an improvement to the technology that starts with less overhead with each advancement.
It's shouldn't cost $100 to buy a movie like it did in the laser disc days. It shouldn't cost $30 to buy a catalog title, either. By the time movies make it to home video, nearly all of them have paid for themselves with theatrical tickets. Catalog titles also often have the added bonus of previous home video releases, TV rights and, in some cases, decades of merchandising. Further, many of these catalog titles were made on very tight budgets that would pale in comparison to those of today, even accounting for inflation.
We aren't paying $20, $25 or $30 for a multi-million dollar movie. We're paying $20, $25 or $30 for our small share of the chance to watch it.
We don't pay $3,000,000 for a chevy because that's how much it costs to produce a prototype. We pay $20,000 for it because that's how much our copy of that prototype costs with a reasonable profit for all those involved.
The right price for something produces the most revenue by setting the right price to sell the maximum number of units vs. what most people will pay. The secret is to not under or overcharge. Too much money and people won't buy and you lose revenue. Too little and you lose to much profit on each unit and lose as much revenue as you would by overcharging.
In the end, it falls on the studio to figure out how to make it at a cost that lets them sell it at a price most of the potential audience for the product will pay.
$30-$35 ain't it.