What really happened is this.. http://www.nytimes.com/paidcontent/PCORG_317734.html?ref=technology Toshiba was starting to push for lower HD-DVD prices. This new HDM disk war was lost then. Warner Bros. and all the studios were not going to let lower prices happen so soon. The new HDM disks are a potential new cash cow for them and they are banking on everyone wanting to switch over all their movies from DVD to the newest HDM disk, whatever it is. By keeping the disk price so high that allows for greater profit taking. Start lowering the disk prices so soon...less profit from all the early adopters whom are usually not price sensitive.
How is it that Toshiba had control over the prices of movies? Toshiba shouldn't have had anything to do with the price of a movie, the studios should have controlled that. Oh, unless you mean Toshiba's bribes to the movie studios let them control the movie prices too. Hmmm. Yes, then Toshiba also controlled that didn't they?
Seems like Toshiba was spending a lot more time behind the scenes than Sony ever was.
Toshiba could pressure the prices lower by lowering its royalty cost. When HD-DVD prices would go lower Blu-Ray would have to match to save some face. Therefore either the Blu-ray association royalty or the movie companies profit would shrink. This was a dangerous first step in a price war where the consumer would benefit, but the movie studios would lose out on profit... follow the money as the saying goes.
Just like when everybody switched from VHS to DVD, the movie companies stand to make billions as everybody re-buys their movie collections. Since this new HDM disk is such higher quality it deserves a premium price. This premium price is pure profit for the studios... don't mess with that profit.
Reader Comments (Page 1 of 1)
Joseph Lark @ Feb 23rd 2008 1:36PM
What really happened is this.. http://www.nytimes.com/paidcontent/PCORG_317734.html?ref=technology
Toshiba was starting to push for lower HD-DVD prices. This new HDM disk war was lost then. Warner Bros. and all the studios were not going to let lower prices happen so soon. The new HDM disks are a potential new cash cow for them and they are banking on everyone wanting to switch over all their movies from DVD to the newest HDM disk, whatever it is. By keeping the disk price so high that allows for greater profit taking. Start lowering the disk prices so soon...less profit from all the early adopters whom are usually not price sensitive.
mugatu @ Feb 23rd 2008 2:25PM
How is it that Toshiba had control over the prices of movies? Toshiba shouldn't have had anything to do with the price of a movie, the studios should have controlled that. Oh, unless you mean Toshiba's bribes to the movie studios let them control the movie prices too. Hmmm. Yes, then Toshiba also controlled that didn't they?
Seems like Toshiba was spending a lot more time behind the scenes than Sony ever was.
Joseph Lark @ Feb 23rd 2008 3:00PM
Toshiba could pressure the prices lower by lowering its royalty cost. When HD-DVD prices would go lower Blu-Ray would have to match to save some face. Therefore either the Blu-ray association royalty or the movie companies profit would shrink. This was a dangerous first step in a price war where the consumer would benefit, but the movie studios would lose out on profit... follow the money as the saying goes.
Just like when everybody switched from VHS to DVD, the movie companies stand to make billions as everybody re-buys their movie collections. Since this new HDM disk is such higher quality it deserves a premium price. This premium price is pure profit for the studios... don't mess with that profit.
Galley @ Feb 23rd 2008 3:43PM
Potential profits in a new format can be in the billions. Profits in a format war that goes on for years is near zero.