Where’s The Savings At?

08.28.09 8 years ago 9 Comments

I’ll start this off by saying I rarely buy or download movies. Music always seemed like a better investment because I’d use it more. With that being said, I do like the convenience of streaming movie from my laptop to my PS3 or throwing it on the hard drive. So in theory, movies allowed in DivX compatible electronics sounds like a good idea.

Four studios — Paramount, Sony, Warner Bros. and Lionsgate — have each agreed to make their films available for download-to-own on DivX-compatible electronics via the Film Fresh website, reports Home Media Magazine. Consumers can transfer the downloaded movies to DVD, USB drives, SD memory cards, and portable hard drives. The films are being offered on the digital media format DivX, which works with DVD and Blu-ray disc players as well as digital HDTVs and gaming consoles. Older films are expected to sell for $9.99 per download, while a new release will go for $15.99.

But to me the price seem outta whack.

The concept of product mark-up isn’t lost on me (I have a wall full of Nike boxes, mind you), but the only thing taken out of the equation is the DVD.  I’m not sure how much it costs to produce a DVD, but it can’t be over $2.00.  $9.99 for older movies & $15.99 for new releases seem kinda high. Take a look at the the pic below.

There’s almost 75,000 DVD’s Best Best Buy has available online.  Close to 75% of those are $14.99 or less.  There’s no way to know how many of those films belong to Paramount, Sony, Warner Bros. and Lionsgate, but I’m sure a good amount of their movies will fall under those lines.  In that case where’s the savings at?

I suppose it could be argued that the convenience of downloading a movie and being able to do what ever you want with it should justify the price.  But even iTunes had the good sense to know that the price has to drop a little bit.

But right now I can get a movie off of Pay-Per-View for $4.99 and record it to DVD off my DVD player if I want to be quasi-legit.

Four Studios Make Films Available For Download-To-Own On DivX-Compatible Devices [News Briefs]

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