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 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.