Wednesday, February 08, 2006
New DVDs -- Expect To Pay More
In the constant stream of stories about Blue-ray DVDs versus HD-DVDs (a format war that consumers could care less about), they've always failed to mention one little detail: exactly how much do studios expect people to pay for these new-fangled DVDs? Now we know -- after forking over $500 to $1000 for a new player, the new generation DVDs themselves will cost 15% to 20% more. So say, $25 instead of $20. Not too much, but they better plan to lower it as time goes on. Studios launched CDs successfully, but instead of being happy that people ran out to buy albums they already owned on LP all over again, record labels decided it was a good idea to increase the cost of an album from $10 to $15 -- and then pushed them higher and higher up to $18 today -- all while illegal downloads made every song ever written available online for free. And they wonder why CD sales collapsed. The same situation now applies to movies and TV shows. People can download them for free hours after they air -- studios should be battling back by offering a better product at a lower price. Instead, they're gonna try and jack up the prices and then wonder why DVD sales slow down significantly in five years.