Video Asylum

Replication costs go down as production goes up and "lessons learned" are applied.

192.35.35.35

oscar

In Reply to: RE: What are the profit margins on the discs? posted by Jack G on December 10, 2007 at 07:54:49

In the long-term, there won't be any replication cost differences (if any) between BD and HD DVD. Similarly with hardware cost differences when economies of scale kick in. Toshiba's only chance to cause Studio defection in favor of HD DVD to pre-empt the slow build up of Blu-ray production and maturation of Blu-ray profiles with dirt-cheap players. If they don't accomplish this soon, all the advantages swing in Blu-ray's favor long-term.

Follow Ups:

doubtful - Jack G 08:40:59 12/10/07 (0)
> > > In the long-term, there won't be any replication cost differences (if any) between BD and HD DVD < < <
I really doubt that. The protective coating alone adds cost, and time to the process. Its not like HD DVD replication costs will stay the same price-they'll go down too, and probably always be cheaper than BD, not to mention the actual replicators, which are already plentiful since all DVD replicators made in the last few years are designed to be quickly and easily convertible to HD DVD. Blu-ray replicators have to be made from scratch, and they aren't cheap. BTW, who do you think will pay the difference when Sony stops subsidizing BD, the studios or the customers?
OTOH, if either format makes the discs too cheap, the same as DVDs, the studios won't have any motivation to go HD at all.
Jack

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