Question:
Link...http://www.mirror.co.uk/news/allnews/page.cfm?objectid=12409315&method=full&siteid=50143
The cash goes to* 39% Retailers profits
15% VAT
15% fees to Toshiba,
Time Warner,
Philips & other companies that
jointly developed the format
14% Advertising, putting info on Disk etc
7% Manufacturer costs,Putting data on
7% Distribution fees
3% Music royalties
*This is estimated by industry experts
I wonder how much it costs to produce and distribute each copy of the Daily Mirror? :rolleyes:
My point is... of course studios and manufacturers are all making money from DVD, but if they didn't they wouldn't make them at all, nor would they make the films in the first place. Its a business not a charity. The main point of that article is the discrepency between US and UK prices - most of which can be explained by the inclusion of VAT and the fact that the market in the US is many times larger than it is here.
In my opinion, instead of bitching about it, the Mirror (if they really care about it - which of course they don't) would be better off educating their readership in the fact that most DVD players are already able or can be made to play discs from anywhere in the world and the availability of discs from overseas suppliers. That knowledge would then allow people to make the choice of where to buy the discs and then it might cause the industry, the larger retailers (and the goverment) to reconsider their pricing policies.
I personally, on a general level, don't think DVDs are overpriced - even in the UK. But it does depend where you buy them from - Go to HMV and Virgin etc and you will probably be paying 20% or more than you would if you shop around the web - but that's a choice you make either through ignorance or laziness.
As a graphic designer, I am an active part in the over pricing of CDs conspiracy. On average I charge about £500 to design a CD package plus whatever it costs to get it ready to be printed - say another £1000 - not that much money but how many CDs do they have to sell to recoup that cost? It all adds up very quickly.
Andrew
I'm also bemused by the use of the word "rip off" - which of the groups listed do you think doesn't deserve a slice of the proceeds, and why?
You have to question their price comparisons though, they seem to be comparing the cheapest american prices with the most expensive UK ones.
CA spokeswoman Emma Harrison says: "Buy them online or at supermarkets where there are reduced prices. Check rental stores where used ones are much cheaper
Surely anyone with even an ounce of common sense would do that anyway.
Surely that should be 17.5% VAT?
Still, 39% to the retailer is a very hefty chunk.
Originally posted by andrew_lee
Surely that should be 17.5% VAT?
Still, 39% to the retailer is a very hefty chunk.
If people are happy to pay the prices then why shouldn't the retailer/anyone else make as much money as they can out of ir? That's the idea of running a business. I could manage on less than I earn but my employer is happy to pay me what they do, does that mean I'm ripping them off?
Still, 39% to the retailer is a very hefty chunk.
Yep - same with the price of videogames..
People are quick to jump up and down on the publisher's heads saying prices are too high, but their cut is tiny comapared to the greedy high street box shifters..
I love the advice from the Consumers Association to " Check rental stores where used ones are much cheaper."
Aye the scratches come cheap too.
:nono:
Originally posted by Bapapapa
People are quick to jump up and down on the publisher's heads saying prices are too high, but their cut is tiny comapared to the greedy high street box shifters..
...then they knock a fiver off the price in their 'Biggest Ever Sale' which runs every month of the year except December. Or double their previous sale prices for a massive 'Buy one get one free' offer. Not that I'm thinking of any particular store...
Personally, the vast majority of my discs are bought on-line.
Where do the film-makers come into all this? Are they in with the 7% distribution cost?
Originally posted by andrew_lee
Where do the film-makers come into all this? Are they in with the 7% distribution cost?
Yes, though in most cases they'll have already made most if not all of the money they're going to make back through selling or leasing the rights to the distributor in the first place - and the distributor's priority is to make back <U>those</U> costs.
The 14% Advertising also includes the cost of producing directors cuts and promos and royalties to actors/screenwriters.
Originally posted by andrew_lee
Surely that should be 17.5% VAT? Aha, no, its 17.5% of the ex. VAT price, not 17.5% of the inc. VAT price;). The fraction of the inc. VAT price is 17.5/117.5=14.89%(to 2 decimal places);).
Originally posted by Dear Mr Echo
As a graphic designer....
Me too! I design DVD packaging mainly although I do CDs as well.
DVDs are under priced IMO. I love this idea that some people have that they should be able to buy them for the manufacturing cost. Apply the same principle when selling your house. Would you accept a lower price than someone was willing to offer?
Originally posted by Mr Nice
Aha, no, its 17.5% of the ex. VAT price, not 17.5% of the inc. VAT price;). The fraction of the inc. VAT price is 17.5/117.5=14.89%(to 2 decimal places);). :dork: :p
Originally posted by jonathan.e
DVDs are under priced IMO. I love this idea that some people have that they should be able to buy them for the manufacturing cost. Apply the same principle when selling your house. Would you accept a lower price than someone was willing to offer?
Completely agree - but then again, I can remember when VHS tapes cost £50 and laserdiscs cost double that. If someone had told me even ten years ago that I'd only have to pay £15-20 for stunning picture and sound quality in the correct aspect ratio with tons of extras thrown in, I'd say they were living in a dreamworld.
Certainly, some over-the-counter DVDs are overpriced by the individual retailer in question (but anyone with any nous should be able to avoid these), but claiming that DVD prices are a "rip-off" as a matter of principle is just silly.
that 39% to the retailer figure would only apply to those retailers that sell at full RRP so a disc that is 199.99 will be making them 39% but look at companies like play who automatically slice 25% off RRP, less of an outrageous slice for them.
Originally posted by danielzavitz
that 39% to the retailer figure would only apply to those retailers that sell at full RRP so a disc that is 199.99 will be making them 39% but look at companies like play who automatically slice 25% off RRP, less of an outrageous slice for them.
Yeah but play are in Jersey so they don't pay the VAT either.
[QUOTE]Originally posted by jonathan.e
[B]Me too! I design DVD packaging mainly although I do CDs as well.
Ah ha! So it's YOUR fault too!!! Better keep quiet or some of these angry Mirror punters will come round with their torches ablaze! ;)
Originally posted by jonathan.e
Me too! I design DVD packaging mainly although I do CDs as well.
DVDs are under priced IMO. I love this idea that some people have that they should be able to buy them for the manufacturing cost. Apply the same principle when selling your house. Would you accept a lower price than someone was willing to offer?
I'm sensible enough to know that they wouldn't be available at the manufacturing cost. Businesses need to make a profit to stay in business. However, it is staggering to find that a single disc DVD can vary in price from say, £15.99 to £19.99 in just a few hundred yards on the High Street. The non-savvy shopper can get ripped off very easily.
The biggest chunk of magazine revenues go to the newsagent/retailers as well
Originally posted by jonathan.e
Me too! I design DVD packaging mainly although I do CDs as well.
Not for EIV I hope :eek: ;)
[nosey mode] Care to name-drop some titles you have worked on ? [/nosey mode] :)
Another poorly thought out, and poorly presented article on the price on DVD's.
Have you ever seen AOTC for £24.99?
But it is in the mirror so what else do you expect?
How on earth do they get the 39% retailer profit?
A £20 DVD has a dealer price of £13.66 (and discounts aren't as common as some think)
£3 of the retail price is VAT - so the profit is approx 19.99 - 13.66 - 2.99 = £3.24 - 17% not 39%!
A £20 DVD has a dealer price of £13.66 (and discounts aren't as common as some think)
£13.66 might be what Joe Bloggs Video Ltd gets charged by his distributor, but it's certainly not what any of the high street chains will pay.
Discounts of 20% off the dealer price wouldn't be uncommon for a retailer like HMV.
. The main point of that article is the discrepency between US and UK prices - most of which can be explained by the inclusion of VAT and the fact that the market in the US is many times larger than it is here.
If this is the case, how do you explain the Australian market which is miniscule compared to both the UK and US markets, but get's cheaper every day?
I can't - maybe they get them used from rental stores?:p
Originally posted by ryonhilluk
Another poorly thought out, and poorly presented article on the price on DVD's.
Have you ever seen AOTC for £24.99?
But it is in the mirror so what else do you expect?
You can get AOTC and TPM in a box set for £29.99 in most place's.I doubt anyone could get away with selling the single film for £24.99
As you say poorly throught out
If retailers take the largest chunk, why are the studios always moaning on about piracy and not the retailers?
Originally posted by Julian K
£13.66 might be what Joe Bloggs Video Ltd gets charged by his distributor, but it's certainly not what any of the high street chains will pay.
Discounts of 20% off the dealer price wouldn't be uncommon for a retailer like HMV.
Not on new releases - as I was told the other week "why would we discount the DP of Clones when all the retailers will buy it anyway??"
Not on new releases - as I was told the other week "why would we discount the DP of Clones when all the retailers will buy it anyway??"
That simply isn't true, Andy.
Retailers have what's known as a "file discount", which applies across the board to every single purchase made from a company.
The video labels need retailers just as much as retailers need product.
I spent a couple of years as the video buyer for one of the high street retailers and, although it was a while ago, I doubt if anything fundamental has changed.
Maybe someone can clear this up for me.
Surely the figure quoted at the top of the thread is selective rather than fact ?, otherwise companies like EIV wouldnt be able to flog their titles for £9.99 10 mintues after they're released.
So who's taking the loss, EIV or the highstreet ?.
Also, surely the highstreet has to buy the dvds themselves before selling them on to the public. Does the 39% profit margin take this into account or is it trying to imply that business like HMV get given DVD's for free ?.
Originally posted by Jimmyboy
Also, surely the highstreet has to buy the dvds themselves before selling them on to the public. Does the 39% profit margin take this into account or is it trying to imply that business like HMV get given DVD's for free ?. Taking the given percentages as factual, it says that the retailers get charged 100%-39%-15%=46% of the RRP, ex. VAT.
My bro in law is manager of a major high street chain and they definitely pay £13.66 for a £19.99 new release...
...of course this could be a "paper" figure from head office to calulate the profit for that store.
My bro in law is manager of a major high street chain and they definitely pay £13.66 for a £19.99 new release...
Yes, that would be the price on the invoice received with the goods. The file discount would be deducted from that at head office level, after negotiation between the chain's buying team and the label's sales division.
You don't think that Head Office would allow every Tom, Dick and Bro in Law to know what this discount is, do you? It's highly confidential information, potentially of great commercial value to a rival retailer!
Originally posted by andrew_lee
However, it is staggering to find that a single disc DVD can vary in price from say, £15.99 to £19.99 in just a few hundred yards on the High Street. The non-savvy shopper can get ripped off very easily. Anyone who can't be bothered to walk a few yards from HMV to Woolies thoroughly deserves to get "ripped-off", I have no sympathy for these people what-so-ever.
i have to say i think dvds give very good value for money these days (particularly if you shop around). a couple of years ago places like WH smith priced dvds at a stupidly high rate, but it seems pretty good now.
and if you have multi-region its even better!
particularly if you get r1 discs from canada, £15.50 for 16 eps of malcolm in the middle, class!!!
The cash goes to* 39% Retailers profits
15% VAT
15% fees to Toshiba,
Time Warner,
Philips & other companies that
jointly developed the format
14% Advertising, putting info on Disk etc
7% Manufacturer costs,Putting data on
7% Distribution fees
3% Music royalties
*This is estimated by industry experts
Answers:
I wonder how much it costs to produce and distribute each copy of the Daily Mirror? :rolleyes:
My point is... of course studios and manufacturers are all making money from DVD, but if they didn't they wouldn't make them at all, nor would they make the films in the first place. Its a business not a charity. The main point of that article is the discrepency between US and UK prices - most of which can be explained by the inclusion of VAT and the fact that the market in the US is many times larger than it is here.
In my opinion, instead of bitching about it, the Mirror (if they really care about it - which of course they don't) would be better off educating their readership in the fact that most DVD players are already able or can be made to play discs from anywhere in the world and the availability of discs from overseas suppliers. That knowledge would then allow people to make the choice of where to buy the discs and then it might cause the industry, the larger retailers (and the goverment) to reconsider their pricing policies.
I personally, on a general level, don't think DVDs are overpriced - even in the UK. But it does depend where you buy them from - Go to HMV and Virgin etc and you will probably be paying 20% or more than you would if you shop around the web - but that's a choice you make either through ignorance or laziness.
As a graphic designer, I am an active part in the over pricing of CDs conspiracy. On average I charge about £500 to design a CD package plus whatever it costs to get it ready to be printed - say another £1000 - not that much money but how many CDs do they have to sell to recoup that cost? It all adds up very quickly.
Andrew
Answers:
I'm also bemused by the use of the word "rip off" - which of the groups listed do you think doesn't deserve a slice of the proceeds, and why?
Answers:
You have to question their price comparisons though, they seem to be comparing the cheapest american prices with the most expensive UK ones.
CA spokeswoman Emma Harrison says: "Buy them online or at supermarkets where there are reduced prices. Check rental stores where used ones are much cheaper
Surely anyone with even an ounce of common sense would do that anyway.
Answers:
Surely that should be 17.5% VAT?
Still, 39% to the retailer is a very hefty chunk.
Answers:
Originally posted by andrew_lee
Surely that should be 17.5% VAT?
Still, 39% to the retailer is a very hefty chunk.
If people are happy to pay the prices then why shouldn't the retailer/anyone else make as much money as they can out of ir? That's the idea of running a business. I could manage on less than I earn but my employer is happy to pay me what they do, does that mean I'm ripping them off?
Answers:
Still, 39% to the retailer is a very hefty chunk.
Yep - same with the price of videogames..
People are quick to jump up and down on the publisher's heads saying prices are too high, but their cut is tiny comapared to the greedy high street box shifters..
Answers:
I love the advice from the Consumers Association to " Check rental stores where used ones are much cheaper."
Aye the scratches come cheap too.
:nono:
Answers:
Originally posted by Bapapapa
People are quick to jump up and down on the publisher's heads saying prices are too high, but their cut is tiny comapared to the greedy high street box shifters..
...then they knock a fiver off the price in their 'Biggest Ever Sale' which runs every month of the year except December. Or double their previous sale prices for a massive 'Buy one get one free' offer. Not that I'm thinking of any particular store...
Personally, the vast majority of my discs are bought on-line.
Where do the film-makers come into all this? Are they in with the 7% distribution cost?
Answers:
Originally posted by andrew_lee
Where do the film-makers come into all this? Are they in with the 7% distribution cost?
Yes, though in most cases they'll have already made most if not all of the money they're going to make back through selling or leasing the rights to the distributor in the first place - and the distributor's priority is to make back <U>those</U> costs.
Answers:
The 14% Advertising also includes the cost of producing directors cuts and promos and royalties to actors/screenwriters.
Answers:
Originally posted by andrew_lee
Surely that should be 17.5% VAT? Aha, no, its 17.5% of the ex. VAT price, not 17.5% of the inc. VAT price;). The fraction of the inc. VAT price is 17.5/117.5=14.89%(to 2 decimal places);).
Answers:
Originally posted by Dear Mr Echo
As a graphic designer....
Me too! I design DVD packaging mainly although I do CDs as well.
DVDs are under priced IMO. I love this idea that some people have that they should be able to buy them for the manufacturing cost. Apply the same principle when selling your house. Would you accept a lower price than someone was willing to offer?
Answers:
Originally posted by Mr Nice
Aha, no, its 17.5% of the ex. VAT price, not 17.5% of the inc. VAT price;). The fraction of the inc. VAT price is 17.5/117.5=14.89%(to 2 decimal places);). :dork: :p
Answers:
Originally posted by jonathan.e
DVDs are under priced IMO. I love this idea that some people have that they should be able to buy them for the manufacturing cost. Apply the same principle when selling your house. Would you accept a lower price than someone was willing to offer?
Completely agree - but then again, I can remember when VHS tapes cost £50 and laserdiscs cost double that. If someone had told me even ten years ago that I'd only have to pay £15-20 for stunning picture and sound quality in the correct aspect ratio with tons of extras thrown in, I'd say they were living in a dreamworld.
Certainly, some over-the-counter DVDs are overpriced by the individual retailer in question (but anyone with any nous should be able to avoid these), but claiming that DVD prices are a "rip-off" as a matter of principle is just silly.
Answers:
that 39% to the retailer figure would only apply to those retailers that sell at full RRP so a disc that is 199.99 will be making them 39% but look at companies like play who automatically slice 25% off RRP, less of an outrageous slice for them.
Answers:
Originally posted by danielzavitz
that 39% to the retailer figure would only apply to those retailers that sell at full RRP so a disc that is 199.99 will be making them 39% but look at companies like play who automatically slice 25% off RRP, less of an outrageous slice for them.
Yeah but play are in Jersey so they don't pay the VAT either.
Answers:
[QUOTE]Originally posted by jonathan.e
[B]Me too! I design DVD packaging mainly although I do CDs as well.
Ah ha! So it's YOUR fault too!!! Better keep quiet or some of these angry Mirror punters will come round with their torches ablaze! ;)
Answers:
Originally posted by jonathan.e
Me too! I design DVD packaging mainly although I do CDs as well.
DVDs are under priced IMO. I love this idea that some people have that they should be able to buy them for the manufacturing cost. Apply the same principle when selling your house. Would you accept a lower price than someone was willing to offer?
I'm sensible enough to know that they wouldn't be available at the manufacturing cost. Businesses need to make a profit to stay in business. However, it is staggering to find that a single disc DVD can vary in price from say, £15.99 to £19.99 in just a few hundred yards on the High Street. The non-savvy shopper can get ripped off very easily.
Answers:
The biggest chunk of magazine revenues go to the newsagent/retailers as well
Answers:
Originally posted by jonathan.e
Me too! I design DVD packaging mainly although I do CDs as well.
Not for EIV I hope :eek: ;)
[nosey mode] Care to name-drop some titles you have worked on ? [/nosey mode] :)
Answers:
Another poorly thought out, and poorly presented article on the price on DVD's.
Have you ever seen AOTC for £24.99?
But it is in the mirror so what else do you expect?
Answers:
How on earth do they get the 39% retailer profit?
A £20 DVD has a dealer price of £13.66 (and discounts aren't as common as some think)
£3 of the retail price is VAT - so the profit is approx 19.99 - 13.66 - 2.99 = £3.24 - 17% not 39%!
Answers:
A £20 DVD has a dealer price of £13.66 (and discounts aren't as common as some think)
£13.66 might be what Joe Bloggs Video Ltd gets charged by his distributor, but it's certainly not what any of the high street chains will pay.
Discounts of 20% off the dealer price wouldn't be uncommon for a retailer like HMV.
Answers:
. The main point of that article is the discrepency between US and UK prices - most of which can be explained by the inclusion of VAT and the fact that the market in the US is many times larger than it is here.
If this is the case, how do you explain the Australian market which is miniscule compared to both the UK and US markets, but get's cheaper every day?
Answers:
I can't - maybe they get them used from rental stores?:p
Answers:
Originally posted by ryonhilluk
Another poorly thought out, and poorly presented article on the price on DVD's.
Have you ever seen AOTC for £24.99?
But it is in the mirror so what else do you expect?
You can get AOTC and TPM in a box set for £29.99 in most place's.I doubt anyone could get away with selling the single film for £24.99
As you say poorly throught out
Answers:
If retailers take the largest chunk, why are the studios always moaning on about piracy and not the retailers?
Answers:
Originally posted by Julian K
£13.66 might be what Joe Bloggs Video Ltd gets charged by his distributor, but it's certainly not what any of the high street chains will pay.
Discounts of 20% off the dealer price wouldn't be uncommon for a retailer like HMV.
Not on new releases - as I was told the other week "why would we discount the DP of Clones when all the retailers will buy it anyway??"
Answers:
Not on new releases - as I was told the other week "why would we discount the DP of Clones when all the retailers will buy it anyway??"
That simply isn't true, Andy.
Retailers have what's known as a "file discount", which applies across the board to every single purchase made from a company.
The video labels need retailers just as much as retailers need product.
I spent a couple of years as the video buyer for one of the high street retailers and, although it was a while ago, I doubt if anything fundamental has changed.
Answers:
Maybe someone can clear this up for me.
Surely the figure quoted at the top of the thread is selective rather than fact ?, otherwise companies like EIV wouldnt be able to flog their titles for £9.99 10 mintues after they're released.
So who's taking the loss, EIV or the highstreet ?.
Also, surely the highstreet has to buy the dvds themselves before selling them on to the public. Does the 39% profit margin take this into account or is it trying to imply that business like HMV get given DVD's for free ?.
Answers:
Originally posted by Jimmyboy
Also, surely the highstreet has to buy the dvds themselves before selling them on to the public. Does the 39% profit margin take this into account or is it trying to imply that business like HMV get given DVD's for free ?. Taking the given percentages as factual, it says that the retailers get charged 100%-39%-15%=46% of the RRP, ex. VAT.
Answers:
My bro in law is manager of a major high street chain and they definitely pay £13.66 for a £19.99 new release...
...of course this could be a "paper" figure from head office to calulate the profit for that store.
Answers:
My bro in law is manager of a major high street chain and they definitely pay £13.66 for a £19.99 new release...
Yes, that would be the price on the invoice received with the goods. The file discount would be deducted from that at head office level, after negotiation between the chain's buying team and the label's sales division.
You don't think that Head Office would allow every Tom, Dick and Bro in Law to know what this discount is, do you? It's highly confidential information, potentially of great commercial value to a rival retailer!
Answers:
Originally posted by andrew_lee
However, it is staggering to find that a single disc DVD can vary in price from say, £15.99 to £19.99 in just a few hundred yards on the High Street. The non-savvy shopper can get ripped off very easily. Anyone who can't be bothered to walk a few yards from HMV to Woolies thoroughly deserves to get "ripped-off", I have no sympathy for these people what-so-ever.
Answers:
i have to say i think dvds give very good value for money these days (particularly if you shop around). a couple of years ago places like WH smith priced dvds at a stupidly high rate, but it seems pretty good now.
and if you have multi-region its even better!
particularly if you get r1 discs from canada, £15.50 for 16 eps of malcolm in the middle, class!!!
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