What do DVDs cost to make

Discussion in 'DVD Video' started by Matthew L. Martin, Jan 4, 2005.

  1. Next to nothing, given that Walmart is selling 25 public domain titles
    in slim cases for $1 each.

    Matthew (product must cost less than $0.10 to make)
    --
    Thermodynamics and/or Golf for dummies: There is a game
    You can't win
    You can't break even
    You can't get out of the game
    Matthew L. Martin, Jan 4, 2005
    #1
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  2. Matthew L. Martin

    TCS Guest

    On Tue, 04 Jan 2005 18:56:01 -0500, Matthew L. Martin <> wrote:
    >Next to nothing, given that Walmart is selling 25 public domain titles
    >in slim cases for $1 each.


    Walmart doesn't manufactor DVDs. There's no correlation between what
    it costs to manufactor a DVD and what walmart can sell them for.
    TCS, Jan 5, 2005
    #2
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  3. TCS wrote:
    > On Tue, 04 Jan 2005 18:56:01 -0500, Matthew L. Martin <> wrote:
    >
    >>Next to nothing, given that Walmart is selling 25 public domain titles
    >>in slim cases for $1 each.

    >
    >
    > Walmart doesn't manufactor DVDs. There's no correlation between what
    > it costs to manufactor a DVD and what walmart can sell them for.
    >


    Are you saying that someone is taking a loss on PD titles? I'd like to
    see some support for that.

    Matthew

    --
    Thermodynamics and/or Golf for dummies: There is a game
    You can't win
    You can't break even
    You can't get out of the game
    Matthew L. Martin, Jan 5, 2005
    #3
  4. Matthew L. Martin

    Alpha Guest


    >There's no correlation between what
    > it costs to manufactor a DVD and what walmart can sell them for.
    >


    New economics?
    Alpha, Jan 5, 2005
    #4
  5. Matthew L. Martin

    Justin Guest

    Matthew L. Martin wrote on [Tue, 04 Jan 2005 19:27:18 -0500]:
    > TCS wrote:
    >> On Tue, 04 Jan 2005 18:56:01 -0500, Matthew L. Martin <> wrote:
    >>
    >>>Next to nothing, given that Walmart is selling 25 public domain titles
    >>>in slim cases for $1 each.

    >>
    >>
    >> Walmart doesn't manufactor DVDs. There's no correlation between what
    >> it costs to manufactor a DVD and what walmart can sell them for.
    >>

    >
    > Are you saying that someone is taking a loss on PD titles? I'd like to
    > see some support for that.


    It's entirely possible.
    Justin, Jan 5, 2005
    #5
  6. Matthew L. Martin

    Wild Coyote Guest

    On Tue, 4 Jan 2005 16:51:14 -0800, "Alpha" <> wrote:

    >
    >>There's no correlation between what
    >> it costs to manufactor a DVD and what walmart can sell them for.
    >>

    >
    >New economics?
    >
    >


    Arthur Andersen economics as applied by Enron.

    --
    Still Howlin' at the Moon!

    Wild Coyote
    wild_coyote<AT>whoppermail.com
    Wild Coyote, Jan 5, 2005
    #6
  7. Matthew L. Martin

    Impmon Guest

    On Tue, 04 Jan 2005 18:56:01 -0500, "Matthew L. Martin"
    <> wrote:

    >Next to nothing, given that Walmart is selling 25 public domain titles
    >in slim cases for $1 each.
    >
    >Matthew (product must cost less than $0.10 to make)


    It was $0.88 at my local Walmart and they also had another case
    featuring movies like High School USA in cardboard sleeves for $3.00
    I did pick up a few $0.88 DVDs mainly for my parents as they used to
    like the old shows.

    A sign that VHS is really dead; is when DVD sells for less than even
    the bargain priced VHS. ;)
    --
    To reply, replace digi.mon with phreaker.net
    Impmon, Jan 5, 2005
    #7
  8. Loss leader
    -oo0-GoldTrader-0oo-, Jan 5, 2005
    #8
  9. Matthew L. Martin

    mercutio Guest

    On Tue, 04 Jan 2005 19:27:18 -0500, Matthew L. Martin wrote:

    > TCS wrote:
    >> On Tue, 04 Jan 2005 18:56:01 -0500, Matthew L. Martin
    >> <> wrote:
    >>
    >>>Next to nothing, given that Walmart is selling 25 public domain titles
    >>>in slim cases for $1 each.

    >>
    >>
    >> Walmart doesn't manufactor DVDs. There's no correlation between what
    >> it costs to manufactor a DVD and what walmart can sell them for.
    >>
    >>

    > Are you saying that someone is taking a loss on PD titles? I'd like to
    > see some support for that.
    >
    > Matthew


    Many stores have "loss leaders." These are items marked at or below a
    store's break-even point or even below cost. It is one form of
    advertising. Draw the customers in, and hope they will buy other things
    that more than make up for the loss on the item in question.

    Obviously, Walmart knows how to make money. They've certainly made a ton
    of it for their owners and investors. Whether or not Walmart is selling
    these DVDs to make a profit or using them for loss-leader advertising is a
    question I don't know the answer to. Whichever it is, Walmart is always
    free to change their mind on the pricing of these DVDs today or in the
    future. As a consumer, just enjoy the ride while it lasts, assuming they
    have a title or two for a $1 a pop that you'd enjoy.
    mercutio, Jan 5, 2005
    #9
  10. Matthew L. Martin

    TCS Guest

    On Tue, 04 Jan 2005 20:26:41 -0500, Impmon <> wrote:
    >On Tue, 04 Jan 2005 18:56:01 -0500, "Matthew L. Martin"
    ><> wrote:


    >>Next to nothing, given that Walmart is selling 25 public domain titles
    >>in slim cases for $1 each.
    >>
    >>Matthew (product must cost less than $0.10 to make)


    >It was $0.88 at my local Walmart and they also had another case
    >featuring movies like High School USA in cardboard sleeves for $3.00
    >I did pick up a few $0.88 DVDs mainly for my parents as they used to
    >like the old shows.


    >A sign that VHS is really dead; is when DVD sells for less than even
    >the bargain priced VHS. ;)


    I've yet to see any movie I'd actually want to own sell at those prices.

    Those movies are about as desirable as a David Lee Roth CD.
    TCS, Jan 5, 2005
    #10
  11. TCS <> wrote:

    >Walmart doesn't manufactor DVDs. There's no correlation between what
    >it costs to manufactor a DVD and what walmart can sell them for.


    A lot of stores are selling $1 DVDs. Target and Dollar Tree come to
    mind. These are all PD titles; the usual movies, some ancient TV shows,
    and a few oddities, like cartoons from the Van Buren studios from the
    1920s and 1930s. I've also picked up a fair number of Grouch Marx TV
    shows to supplement the Shout Factory collections. Some of these discs
    are downright decent, but even the worst I've bought are better quality
    than the typical PD VHS tape.
    Kimba W. Lion, Jan 5, 2005
    #11
  12. Matthew L. Martin

    TCS Guest

    On Tue, 04 Jan 2005 22:01:01 -0500, Kimba W Lion <kimbawlionATaolDOTcom@127.0.0.1> wrote:
    >TCS <> wrote:


    >>Walmart doesn't manufactor DVDs. There's no correlation between what
    >>it costs to manufactor a DVD and what walmart can sell them for.


    > A lot of stores are selling $1 DVDs. Target and Dollar Tree come to
    >mind. These are all PD titles; the usual movies, some ancient TV shows,


    A lot are crap movies that the studios would have liked to get $20 but
    can't give away.
    TCS, Jan 5, 2005
    #12
  13. Matthew L. Martin

    Otter Guest

    On Tue, 04 Jan 2005 18:56:01 -0500, "Matthew L. Martin"
    <> wrote:

    >Next to nothing, given that Walmart is selling 25 public domain titles
    >in slim cases for $1 each.


    First off, these are public domain titles and they're designed to be
    sold for a buck. Best Buy has a number of them as well.

    Secondly, it costs next to nothing to press a DVD or CD. Consider how
    cheap CD blanks are these days. You can buy a 100pk spindle for under
    $20. And you know the company has to be making some sort of profit so
    they're probably really only 1cent a piece. I doubt a DVD costs any
    more, but we'll say .02 each.

    Since these are public domain titles ANYONE can release them. There's
    no cost to aquire the film so the only cost is in mastering and
    pressing, and the packaging.

    Finally someone said none of these are anything anyone would want. I
    disagree. Night of the Living Dead (while not part of this deal) is
    public domain. I've picked up the original Little Shop of Horrors and
    Last Man On Earth from these $1 deals.

    -Otter
    Otter, Jan 5, 2005
    #13
  14. On Wed, 05 Jan 2005 00:52:03 GMT, Justin <> wrote:

    >Matthew L. Martin wrote on [Tue, 04 Jan 2005 19:27:18 -0500]:
    >> TCS wrote:
    >>> On Tue, 04 Jan 2005 18:56:01 -0500, Matthew L. Martin <> wrote:
    >>>
    >>>>Next to nothing, given that Walmart is selling 25 public domain titles
    >>>>in slim cases for $1 each.
    >>>
    >>>
    >>> Walmart doesn't manufactor DVDs. There's no correlation between what
    >>> it costs to manufactor a DVD and what walmart can sell them for.
    >>>

    >>
    >> Are you saying that someone is taking a loss on PD titles? I'd like to
    >> see some support for that.

    >
    >It's entirely possible.



    Does the term "Lost Leader" ring a bell?
    E. Barry Bruyea, Jan 5, 2005
    #14
  15. Matthew L. Martin

    Nonymous Guest

    "TCS" <> wrote in message
    news:...
    > On Tue, 04 Jan 2005 18:56:01 -0500, Matthew L. Martin
    > <> wrote:
    >>Next to nothing, given that Walmart is selling 25 public domain titles
    >>in slim cases for $1 each.

    >
    > Walmart doesn't manufactor DVDs. There's no correlation between what
    > it costs to manufactor a DVD and what walmart can sell them for.


    There's no correlation between what it costs to manufacture a product and
    how much it can retail for? Is this some sort of new economics?
    Nonymous, Jan 5, 2005
    #15
  16. Matthew L. Martin

    Donald Link Guest

    Does the fact that the titles are mostly titles that probably cost a
    penny to pay copyrite royalties and the disks are cheap and artwork
    even cheaper on the titles that are not public domain. They are
    almost always a couple of dollars. Lets see say fifty cents profit on
    5 million copies. May be pocket change to Walmart but then repeat
    this a few times a year. Boy!


    On Wed, 05 Jan 2005 05:03:54 -0500, E. Barry Bruyea <it'>
    wrote:

    >On Wed, 05 Jan 2005 00:52:03 GMT, Justin <> wrote:
    >
    >>Matthew L. Martin wrote on [Tue, 04 Jan 2005 19:27:18 -0500]:
    >>> TCS wrote:
    >>>> On Tue, 04 Jan 2005 18:56:01 -0500, Matthew L. Martin <> wrote:
    >>>>
    >>>>>Next to nothing, given that Walmart is selling 25 public domain titles
    >>>>>in slim cases for $1 each.
    >>>>
    >>>>
    >>>> Walmart doesn't manufactor DVDs. There's no correlation between what
    >>>> it costs to manufactor a DVD and what walmart can sell them for.
    >>>>
    >>>
    >>> Are you saying that someone is taking a loss on PD titles? I'd like to
    >>> see some support for that.

    >>
    >>It's entirely possible.

    >
    >
    >Does the term "Lost Leader" ring a bell?
    Donald Link, Jan 5, 2005
    #16
  17. Matthew L. Martin

    Larry Guest

    In article <>,
    says...
    > Does the term "Lost Leader" ring a bell?
    >


    Actually the term is "Loss Leader" and comes from taking a "Loss" on a
    product to "Lead" people into the store.


    DvD DISKS are a commodity, the movies that are on them are NOT commodities,
    they are "intellectual properties" and deserve whatever price the owners of
    the properties can get for them.

    The fact that a DvD costs about a dime to make (once the master is cut) has
    NOTHING to do with how much the disc will cost at the store shelf.

    That price is set by the cost of the movie overall (how much does the owner
    of the movie get, how much does the studio get, et al).

    If the retailer decides to take a "Loss" on selling the movie, it really is
    totally independant of what it cost to make the disk.


    --
    Larry Lynch
    Mystic, Ct.
    Larry, Jan 5, 2005
    #17
  18. Matthew L. Martin

    TCS Guest

    On Wed, 05 Jan 2005 11:18:20 GMT, Donald Link <> wrote:
    >Does the fact that the titles are mostly titles that probably cost a
    >penny to pay copyrite royalties and the disks are cheap and artwork
    >even cheaper on the titles that are not public domain. They are
    >almost always a couple of dollars. Lets see say fifty cents profit on
    >5 million copies. May be pocket change to Walmart but then repeat
    >this a few times a year. Boy!


    oh, right. The studios sells their movies for 50 cents and then blockbuster
    sells them for $25.
    TCS, Jan 5, 2005
    #18
  19. Matthew L. Martin

    TCS Guest

    On Wed, 5 Jan 2005 05:35:58 -0500, Nonymous <> wrote:

    >"TCS" <> wrote in message
    >news:...
    >> On Tue, 04 Jan 2005 18:56:01 -0500, Matthew L. Martin
    >> <> wrote:
    >>>Next to nothing, given that Walmart is selling 25 public domain titles
    >>>in slim cases for $1 each.

    >>
    >> Walmart doesn't manufactor DVDs. There's no correlation between what
    >> it costs to manufactor a DVD and what walmart can sell them for.


    >There's no correlation between what it costs to manufacture a product and
    >how much it can retail for? Is this some sort of new economics?



    No. The DVD manufactoring cost is zilch. What the studios sell them for
    is what hey'd like to recoup for making the movie in the first place.

    Do you really thinks it costs $25 to make a DVD for a first rate movie but
    only 25 cents for a crap movie?
    TCS, Jan 5, 2005
    #19
  20. Matthew L. Martin

    Guest


    > Are you saying that someone is taking a loss on PD titles? I'd like

    to
    > see some support for that.


    Considering the way Walmart is known to strong-arm its suppliers, it
    wouldn't surprise me if a distributor was taking a loss on these
    particular items in order to maintain their relationship with Wally on
    other items.

    And it's likely these discs are price-point items anyway (designed to
    attract your attention). So even Walmart itself may be taking a loss on
    them.

    -Eric
    , Jan 5, 2005
    #20
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