HDD Economics 101

[view-it-purple]

Someone should explain to these DUD'rs that if you have one product and it's profit margin is $7 to $10 (DVD) per unit and another that profit margin is $14 to $21 () per unit, that the latter () over takes at 34% not 51%. beats DVD at 34%! ... and when studios start making more money on what do you think will end up on single layer DVD 5 gig discs with stereo sound with no extras & coming out 2-3 weeks latter?

[nextoo]

Finally a post with a hint of logic. That being the case let's follow the logic. Or in this case follow the money.

The studies that have come out this year for the most part claim BR will overtake DVD sometime in 2012. These studies are looking at revenue. Not unit volume.

These studies also attempt to peg the average revenue per unit when BR overtakes DVD. The most common prognostications I've read peg BR selling for around $20 per unit with DVD at $10 per unit.

So in 2012 when BR overtakes DVD and becomes the revenue leader the unit sales will still favor DVD by a ratio of 2 to 1. The unit split will be 66% DVD with 34% of unit volume going to BR.

66% to 34% in favor of DVD in number of units sold. With BR leading in revenue. And DVD leading in popularity - by a wide margin.

[Sbert]

Originally Posted by nextoo

Finally a post with a hint of logic. That being the case let's follow the logic. Or in this case follow the money.

The studies that have come out this year for the most part claim BR will overtake DVD sometime in 2012. These studies are looking at revenue. Not unit volume.

These studies also attempt to peg the average revenue per unit when BR overtakes DVD. The most common prognostications I've read peg BR selling for around $20 per unit with DVD at $10 per unit.

So in 2012 when BR overtakes DVD and becomes the revenue leader the unit sales will still favor DVD by a ratio of 2 to 1. The unit split will be 66% DVD with 34% of unit volume going to BR.

66% to 34% in favor of DVD in number of units sold. With BR leading in revenue. And DVD leading in popularity - by a wide margin.

Sounds good to me and very very successful at that.

[nextoo]

Originally Posted by Sbert

Sounds good to me and very very successful at that.

I agree. That would be a very good showing. The down side is having to read all of paranoid blu bots who think DVD must die in order for BR to be successful.

It sure would be nice not to have to read through the palpable paranoia anytime a new DVD player gets sold. Or have to listen to "investment" advice.

Pretty funny actually.

[Centauri]

Aww. You started your own little party.

Can I come?

[Beta-guy]

Originally Posted by nextoo

I agree. That would be a very good showing. The down side is having to read all of paranoid blu bots who think DVD must die in order for BR to be successful.

It sure would be nice not to have to read through the palpable paranoia anytime a new DVD player gets sold. Or have to listen to "investment" advice.

Pretty funny actually.

it's not us that write about DVD's in the smackdown forum, that honor goes to xboxboi, gargamel, mikemorel, and that gang.

honestly I don't care about DVD, and I don't think it belongs in any HD forum.

[Favelle]

Originally Posted by Beta-guy

it's not us that write about DVD's in the smackdown forum,

Strange, in the first 4 posts (aka thread circlejerk), I see DVD mentioned 13 times. Hmmm....

[view-it-purple]

Originally Posted by Centauri

Aww. You started your own little party.

No, it called "a big person thread" you can go back to the kiddy table now. Run along.

Originally Posted by Centauri

Can I come?

All the guys at the bathhouse say too quickly.

[view-it-purple]

Originally Posted by Favelle

Strange... circlejerk... Hmmm....

Are you trying to tell us something?

[vinnie97]

Originally Posted by view-it-purple

All the guys at the bathhouse say too quickly.

wow.

[Flex Mentallo]

It's comedy gold.

[goatmother]

Originally Posted by Centauri

Aww. You started your own little party.

Can I come?

Nope, you chose your grave and you will stay in it

[aaronwt]

ladder????

[view-it-purple]

Originally Posted by aaronwt

ladder????

Latter. Sorry, it's fixed now.

[Kable]

Your formula only works if Blu-ray software prices remain static. If people are still paying 35 bucks retail for a hdm in 2012, you probably won't have to worry about the format hitting 34% in the first place. Blu-ray prices should drop over time, it's also possible that DVD prices could go up as studios attempt to ween the public off of DVD. There's just too many variables and blu is too far from 34% for this calculation to work at this time.