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Consumer Association calls for Office of Fair Trading to investigate dvd pricing

Discussion in 'Movie Forum' started by dgj, Nov 28, 2002.

  1. dgj

    dgj
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    In a artical in todays Mirror There is a item on the diferrence in the cost of a DVD between here and the USA.

    It highlights the cost of producing dvd's and where the profit goes, you can see the article at www.mirrror.co.uk, click on news and look for the the item headed "The Great DVD Rip Off".

    39% of the cost of the disc goes in profit, 15% goes as fees to the companies who developed the format, 15% is VAT, 14% is advertising, 7% distrbution fees, 7% manufacturing cost and pakaging, 3% music royalties.

    The article ends with a call from the Consumers Association for the Office of Fair Trading to investigate the pricing of DVD's.
     
  2. PoochJD

    PoochJD
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    Hi,

    Unfortunately, the article is a) telling real fans of DVD nothing new, and b) has some inaccuracies in its pricing of the DVD titles it uses to string its story together.

    Example:-

    "Lord Of The Rings: The Fellowship...." Standard Release can be easily obtained for £17-99 in most High Street stores. Only the 4-disc "Extended Release" of LOTR has a RRP of £24-99. However, they are quoting the price for LOTR as being £29-99, which it isn't at all! You may pay that figure, if you buy the special LOTR boxed set with the four discs and the two bookends, online, but otherwise even that has an RRP of £49-99, and most shops aren't selling it for less than £44-99.

    It's another tabloid story that's not actually of much use to fans of DVD's. And stupid people who take the story at face value, probably aren't intelligent enough to shop around anyway!

    Just my opinion of course...! :D

    Pooch
     
  3. LDR

    LDR
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  4. Lex

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    Sorry Pooch but you are wrong, the LOTR does have an rrp of £29.99.
    Anyway I think you are missing the point... Yes retailers on the high street do sell dvds for less than the rrp, but then so do retailers in the USA, thus the ratio remains the same. "Shopping around" does not alter this fact, as were you to shop around in US high streets as well, you would get them even cheaper. :)
     
  5. Squirrel God

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    I'm sick of hearing about how much profit is made from CDs and DVDs and seeing endless breakdowns of the ratios of various elements of the pricing.

    At the end of the day, the cost of the materials of CDs and DVDs is irrelevant. When we buy a DVD we're paying for the movie. The movie costs money to make and money to advertise and money to distribute, and everyone in the chain has to recoup their costs and make a decent profit. Quite simply, if people don't want companies to make a profit, then they should vote for the Communist candidate in the next election ;)

    Companies will always charge as much as the market will bear (read "as much as they can get away with"). If people are stupid enough to pay high-street prices then good luck to the companies that get away with it. The Internet brings us as close to the "perfect market" as we have ever been with consumers able to achieve close to "perfect information" about the market place and compare prices, services and so on. If people don't use this wealth of information to their advantage, then more fool them I'm afraid.

    Tabloid sensationalism strikes again! The Mirror have obviously got nothing better to do :rolleyes:
     

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