It's a good chunk of change for sure, but look at how much they get off disc sales. It takes pennies to create a disc with packing and all when it's mass produced. They have to pay some licensing fees, but beyond that they get a huge markup. They ream their customers that join the Disney Movie club too. One would think if the middle-man (retail) is skipped then the savings would be passed on to the consumer. Not so, they in fact charge higher prices to Disney Movie club members than if they were to walk into a store and buy the same thing. When sold in retail, the prices have to be competitive (still overpriced), and when sold digitally they have to conform to the distributor's pricing scheme. Long story short, they don't loose as much money on distribution/manufacturing of physical media as you think.
Of course, digital distribution is even more of a rip-off to me --even though it's cheaper-- because of the DRM.
Reader Comments (Page 1 of 1)
Lars @ Mar 13th 2008 2:39PM
It's a good chunk of change for sure, but look at how much they get off disc sales. It takes pennies to create a disc with packing and all when it's mass produced. They have to pay some licensing fees, but beyond that they get a huge markup. They ream their customers that join the Disney Movie club too. One would think if the middle-man (retail) is skipped then the savings would be passed on to the consumer. Not so, they in fact charge higher prices to Disney Movie club members than if they were to walk into a store and buy the same thing. When sold in retail, the prices have to be competitive (still overpriced), and when sold digitally they have to conform to the distributor's pricing scheme. Long story short, they don't loose as much money on distribution/manufacturing of physical media as you think.
Of course, digital distribution is even more of a rip-off to me --even though it's cheaper-- because of the DRM.
Oh, and please don't post-jack.