More Units or More Profits?
"HD-DVD players posted a more successful launch than its Blu-ray rival, at least in terms of the number of players sold. Home Media Retailing quotes an NPD study that found that HD-DVD player outsold Blu-ray players by 33% during their first six weeks after launch. HD-DVD sales began in April, while Blu-ray players followed in June; the only Blu-ray play currently offered is Samsung's $1000 BD-P1000, while HD-DVD players are offered from multiple vendors for prices as low as $450.
Here is the interesting part, though:
The higher price allowed Samsung alone to capture higher revenues than all HD-DVD player manufacturers combined. According to NPD, the BD-P1000 achieved 42% more revenue than HD DVD players during their first six weeks."
So, is it more important to get as many units out there as possible or make the retailers who sell your units more profitable? People have been complaining that Blu-ray is considerably more expensive than HD-DVD, but it appears to be that Blu-ray players are providing larger profit margins (in order to make retailers happier), while HD-DVD manufacturers are actually selling them at a loss. It will be interesting to see which philosophy wins out in the end.
Here is the interesting part, though:
The higher price allowed Samsung alone to capture higher revenues than all HD-DVD player manufacturers combined. According to NPD, the BD-P1000 achieved 42% more revenue than HD DVD players during their first six weeks."
So, is it more important to get as many units out there as possible or make the retailers who sell your units more profitable? People have been complaining that Blu-ray is considerably more expensive than HD-DVD, but it appears to be that Blu-ray players are providing larger profit margins (in order to make retailers happier), while HD-DVD manufacturers are actually selling them at a loss. It will be interesting to see which philosophy wins out in the end.
posted by Frosty @ 10:58 AM
1 Comments:
At 1:47 PM,
Frosty said…
Well, as HD cameras start to come lower and lower in price, along with the shift to pure digital, I assume the movie industry will quickly have to shift. There is always going to be a big push for film, but digital will slowly gain in acceptance. In the meantime, film will just be scanned in at HD resolutions and we'll get better quality that way. In most movies with crazy special effects, the film is already scanned in at extremely high resolutions and companies like Sony are starting to convert a log of their backlog of movies into HD. So, while you initially won't see dramatic results in non-digital movies like you would in a Pixar release, I think things will get a lot better over time. It's just like how the first DVDs looked horrible and current ones look considerably better.
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