Quote:
Originally Posted by emmanuelle
I suspect that the point he is trying to make is that it's difficult for him to sell his dvd titles to consumers @ $39.95 when the same titles can be downloaded for $2.99.
It sucks competing against yourself, but that's a choice one makes when trying to sell to consumers and to other distributers. It's similar to the situation faced by paysites having to compete against their affiliates for search engine traffic.
It sounds like Zappu is making a smart move though, holding back his titles exclusively for a year, before releasing them to other methods of distribution.
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Just want to throw in my 2 cents here...
Quite honestly, as far as I know, you cannot download a full video on a VOD site for $2.99 anywhere. Video downloads are at least $19.95 on AEBN. VOD isnt as bottom-of-the-barrel cheap is it sometimes gets made out to be. VOD is competitive with the DVD markup % that most studios receive, except you only have to pay for the shipping to send the movie to your VOD provider to encode. After that its pure profit. No costs for the production of packaging, disc printing, shipping, etc.
Here at AEBN, anyways, the vast majority of customers seem to repeatedly purchase the smallest minutes packages, instead of buying one large minute package. The smaller minutes packages are about 3 times the price when looking at it by cost per minute.