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Discussion Starter · #1 ·
Hmmm.... A significant cut in pricing for Digital Distribution of movies. Who saw that coming....

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Just as DVD retailers get more aggressive in cutting prices on discs, Apple iTunes and Amazon Video On Demand are getting fierce in promoting and slashing prices on digital movie and TV downloads.


Both sites have begun running near regular promotions selling catalog films for less than $5 and renting back-catalog movies for as little as 99¢, well below digital competitors.


Amazon, meanwhile, is now pricing new releases on par with iTunes at $14.99, below the site's previous new releases tag of $17 and often below the price the site sells those same movies for on DVD and Blu-ray Disc.
Quote:
Amazon and iTunes have been particularly aggressive with catalog title promotions. ITunes is now offering a Back to School promotion, with movies School of Rock, Clueless, Good Will Hunting and others available as a download for $4.99.


ITunes has a continual promotion running with a category of Films under $5 and $6, including such catalog films as Rosemary's Baby ($5.99), Meet Bill ($4.99) and Made ($3.99).


Amazon VOD has its own category of Movies for $5.99, which includes Terminator 2: Judgment Day ($4.99) and Troy ($5.49).


But some of the best deals are on TV series, an area in which both sites also face online competition from ad-supported video sites Hulu, TV.com and others. Amazon is selling full-season downloads for as little as $5, the price for NBC hit series 30 Rock: Season 1.
http://www.videobusiness.com/article/CA6685334.html
 

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Now we are getting there.. on order to appeal to everyone digital downloads HAVE to be a lot cheaper than retail disc versions. It's simply not justified for movies to be sold at the same price.


They really need to start realizing that quantity of users that have access to digital downloads now will what will make them a lot of money even if movies are $9.99 at most for example instead of $19.99, especially since they have really very little costs with packaging and other stuff they have with physical media.
 

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Quote:
Originally Posted by Wendell R. Breland /forum/post/17044731


From wally world:


$5.86 Rosemary's Baby (Widescreen)


$3.86 Terminator 2: Judgment Day (2-Disc) (Widescreen, Special Edition)


$5.32 Troy (Widescreen)


$6.86 Clueless: The Whatever Edition (Widescreen, Special Edition)


$8.86 Good Will Hunting (Widescreen, Collector's Edition)



Still not bad.. it's same price for the most part for movies that are worth that much.. If I were to buy those on Blu-ray I'm looking at least twice the price. So it's a good direction.
 

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Discussion Starter · #8 ·

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Originally Posted by fpconvert /forum/post/17044683


Yes, they did adjust...30 day delay or large multi year payment.

Not quite what RB was anticipating and it shows in the parent companies stock prices.

There is no way for the studios to enforce the delay. I suggest educating yourself on the topic. First Sale Doctrine has already been discussed in a couple of forums.
 

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Discussion Starter · #9 ·

Quote:
Originally Posted by Wendell R. Breland /forum/post/17044731


From wally world:


$5.86 Rosemary's Baby (Widescreen)


$3.86 Terminator 2: Judgment Day (2-Disc) (Widescreen, Special Edition)


$5.32 Troy (Widescreen)


$6.86 Clueless: The Whatever Edition (Widescreen, Special Edition)


$8.86 Good Will Hunting (Widescreen, Collector's Edition)

That is awesome!! Yet more pricing pressure for the studios. Do they really want to press a disc, including all the packaging and ship it off to wholesalers (who in turn have to ship it to retailers) just to see it RETAIL for less than the cost of a Big Mac combo?


Thanks for posting that data! Another example of the severe devaluation of physical media!
 

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Quote:
Originally Posted by PSound /forum/post/17046338


That is awesome!! Yet more pricing pressure for the studios. Do they really want to press a disc, including all the packaging and ship it off to wholesalers (who in turn have to ship it to retailers) just to see it RETAIL for less than the cost of a Big Mac combo?

Not sure where you have been but wally world has had bins full of $5.00 DVDs for many years. For new A titles on DVD expect to pay $15.00 to $24.00.
 

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Quote:
Originally Posted by fpconvert /forum/post/17046831


I guess i'll just stream t2 and troy to my tv...oh no, I guess I can't after all. Good thing for cheap shiny discs.

Wait.. how is it that you can't stream to your TV?


Everything I buy on Amazon for example I can watch on my TV thanks to multitude of devices like my X360 or PS3 or new TVs with AMAZON integrated or my HTPC or anything that can access Windows Media Center.


You must have missed that every major CE manufacturer now sells TVs with support for these services too.
 

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I'm sure this would work out great for WW where they are assured of selling dvds to the RB man for something more than wholesale but less than retail. This may make up for any lost sales WW might encounter from used discs. RB will need to buy massive quantities of WB discs from the WWs to load into RBs at supermarkets, c stores and other places.

Not what they were counting on...
 

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Quote:
Originally Posted by fpconvert /forum/post/17047668


So i'm going to spend $100 to $2000 so I can spend more at itunes or amazon for what I can get for less at WW.

That's using your money wisely.

That's a shortsighted view IMO.. obviously you refuse to acknowledge that over 60 million people alone have the access to it through their consoles plus 100s of millions who already have computers and so on.


If someone is to buy a TV now they will automatically get the ability and they don't have to spend money on anything other than TV. No need for DVD/Blu-ray players no need for buying discs and so on.


If you can't see how this is beneficial to consumers and of course nature itself by getting rid of plastic and additional equipment than I don't think you are being sincere.
 

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Discussion Starter · #17 ·

Quote:
Originally Posted by fpconvert /forum/post/17047691


I'm sure this would work out great for WW where they are assured of selling dvds to the RB man for something more than wholesale but less than retail. This may make up for any lost sales WW might encounter from used discs. RB will need to buy massive quantities of WB discs from the WWs to load into RBs at supermarkets, c stores and other places.

Not what they were counting on...

RB is going to obtain discs, rent a ton at $.99 and turn a profit.


The studios are going to see a large number of their discs dumped on the used market for ~ $7 just a few weeks after release. The combination of the used price and the rental price will continue to devalue the content and make cost control even more important for the studios.
 

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Quote:
Originally Posted by Bozster /forum/post/17050322


That's a shortsighted view IMO.. obviously you refuse to acknowledge that over 60 million people alone have the access to it through their consoles plus 100s of millions who already have computers and so on.


If someone is to buy a TV now they will automatically get the ability and they don't have to spend money on anything other than TV. No need for DVD/Blu-ray players no need for buying discs and so on.


If you can't see how this is beneficial to consumers and of course nature itself by getting rid of plastic and additional equipment than I don't think you are being sincere.
http://a330.g.akamai.net/7/330/2540/...OverallPie.jpg


So with all that potential why do you suppose it's still only 10% of the entire pie?
 

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Quote:
Originally Posted by PSound /forum/post/17050348


RB is going to obtain discs, rent a ton at $.99 and turn a profit.


The studios are going to see a large number of their discs dumped on the used market for ~ $7 just a few weeks after release. The combination of the used price and the rental price will continue to devalue the content and make cost control even more important for the studios.

You mean they will have to buy more shiny discs. Excellent!


If I buy a disc, I want the package, the inserts, bonus discs and all.

I don't wan't a scratched up disc in some plain holder for $7 when I can buy it off Amazon in near new shape for $10.
 

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Discussion Starter · #20 ·

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Originally Posted by fpconvert /forum/post/17050726


You mean they will have to buy more shiny discs. Excellent!

Yes, which directly results in a lower overall amount of discs being sold. Each disc purchased by Redbox serves the needs of more consumers than in traditional rental outlets (due to efficiencies of the service) and many eventually take the place of a sell-through sale.


If you wish to counter this information at least bring in real data or executive quotes. Each and every studio executive that has been quoted has shown concern about the kiosk model to the studio's business.


If you can counter that with information from the studios or legitimate Wall Street analysts, then there may be something to discuss. Insinuation or unsupported anecdotal stories simply do not cut it.


Quote:
If I buy a disc, I want the package, the inserts, bonus discs and all.

I don't wan't a scratched up disc in some plain holder for $7 when I can buy it off Amazon in near new shape for $10.

Good for you.


The issue of used disc prices from Redbox is sufficient enough to be on the radar of each and every major studio. Each studio has either reached an agreement with Redbox to limit the amount of used shiny discs or has taken action to limit Redbox's access to their discs.


The issue of the impact on content pricing is real and clear. Simply because you do not understand this does not make it any less real.


If you have data (anecdotal info or personal preferences are not data) that kiosks are good for studios or that studios seem excited about the new consumer value being placed on their content, then please provide that info.
 
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