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Music Industry Compared to Movie Industry

tgibson writes "The Denver Post has an article comparing the missteps of the recording industry to the movie industry's success with DVDs: 'The best-selling "Chicago" movie soundtrack is available on CD starting at $13.86. The actual movie, with the soundtrack songs included, of course, plus additional goodies ranging from deleted musical numbers to the director's interview and a "making-of" feature, can be had for precisely $2.12 more...'"

48 of 553 comments (clear)

  1. Get Off Me! by inertia187 · · Score: 5, Insightful

    They're nickel-and-dime-ing the consumer to death, and no one will do anything about it. What, do they think we're made of money? The surcharges and the "Artist" tax for all CDR related equipment has to stop. When will people take notice? (fp)

    --
    A programmer is a machine for converting coffee into code.
  2. DVDs by dzym · · Score: 4, Insightful
    I don't buy CDs at all, yet I regularly go out and spend $20 each (or more) on DVDs nearly every week.

    Simply put, in my sole estimation, DVDs are worth my money--music CDs aren't.

    1. Re:DVDs by ichimunki · · Score: 3, Insightful

      Great. So it sounds like you're actively funding the other half of the anti-consumer crusade. Last theater movie I went to (Seabiscuit) they had an anti-piracy blurb at the beginning of the film. MPAA are also the people going after Jon Johansen and the other DeCSS folks. So Hollywood knows how to price DVDs... this is not as great as it sounds. The profits on movies are front-loaded at the box office, so the residuals from DVD sales are largely gravy (although admittedly they are spending a lot more on films, hoping to make it up on home releases... and the DVD does have additional material you won't see in theaters).

      --
      I do not have a signature
    2. Re:DVDs by ScrewMaster · · Score: 5, Insightful

      Yes. Part of it is the investment made in producing the product. For example, how much does it take to produce a typical audio CD? $50,000? $100,000? $250,000?

      Contrast that to a major motion picture which might have cost the studio a hundred million dollars or more to create, and I can buy a copy of that production for the price of a music CD. That, to me, is not a bad value. Sure, I dislike the encryption and region coding, and frankly the DMCA is almost enough to keep me from buying DVDs at all, but really there are some damned good movies out there nowadays. Honestly, I don't mind paying $17 or so for a copy of The Hulk or Spiderman or any of the other major motion pictures in recent years. And, I find that there have been thousands of releases of older films that I can buy at Walgreen's for three bucks.

      On the other hand, the music industry may or may not be in financial trouble (hard to say, they lie so often.) If they are, I can tell you this: it has nothing to do with anything they say it does. Rather, their problems are a direct result of providing a poor quality product for too much money. This translates to not being a good value for the customer, and is a typical outcome whenever monopolies are involved. What has happened is that the customer base has been exposed to alternatives (all the way from "free" music from online applications to purchased music created by independent (non-RIAA aligned) musicians) and has begin (slowly, to be sure) to wake up to what a rotten value the major music studios actually deliver.

      --
      The higher the technology, the sharper that two-edged sword.
    3. Re:DVDs by t · · Score: 2, Insightful
      You do realize that HD TVs cost thousands don't you? That they are also not mainstream? This means that the people who buy this tech are much much more knowledgeable than your average consumer with an old TV and a $100 DVD player. And btw, who exactly is "they"? Is that some kind of "if we make it they will buy it" logic? Good luck.

      btw, investing buku millions in a movie and then just "waiting us out" costs them more interest then I'll ever make in a legit job, i.e., ain't gonna happen. And really that's the fundamental difference between the movie and music industries. The movie industries have to pay real cash up-front (not promises of future funds), whereas the music industry claims that it costs them millions to find a hit band. That's why one is forced to bow to their consumers and the other shits on its consumers.

    4. Re:DVDs by t · · Score: 2, Insightful

      Television broadcasters offering it is one thing, making consumers upgrade is entirely different. Also how many channels is that? One? Do you know that in olden times many people never dumped their black&white TVs until they finally broke. The FCC plans say that analog broadcasts cannot be dropped until there is around an 85% conversion of the consumers to HD TVs. In other words, not for a very long time.

    5. Re:DVDs by kryonD · · Score: 3, Insightful

      Actually, the article is not brilliant by any stretch of the imagination.

      Let's take your average Summer Blockbuster. Average pricetag with good actors and good special affects and some reasonable marketing seems to be around the $100M mark. But that was just the cost of making the movie. Now we need to make it into a DVD.

      Lets add another $20M for:
      * The cost of converting 35mm Kodak into digital form.
      * Editing time to get a seperate made for TV "Full Screen" version.
      * Paying spanish and french voice artists to do some dubbing.
      * More editing and remastering time for the "Making Of" mini-feature.
      * Interview time with important cast members.
      * Various royalties associated with having DVD player software come bundled with the disk so you can just pop it into your computer and watch it.

      Now that you have this $120M master disk, how many copies do you make? How much money are you going to invest in packaging and additional goodies to make the DVD more tempting? How much do blank DVD's run in uber-bulk quantities? How much does the distribution chain cost to get the DVD from your warehouse to the self of the local Wall-Mart in Bum-F*ck, Idaho? If sales are slow, how much is your warehouse space costing per day because you made too many copies?

      According to IRS.gov, there are approximately 130M individual income tax filings. Let's make a conservative estimate that 10M of these are teenagers or newly married couples who chose to file seperately, but live in the same household. That gives us 120M households who may want to purchase your $120M masterpeice. Let's say it's really popular and 10% of these people decide they need their own copy. 12M copies at $10 a pop would barely cover the cost of making it and you still haven't covered the packaging, storage and distribution costs....plus you want to make a little money in profit because your a well adjusted capitalist like the rest of us. $20 a copy should make this work, but then there's the little issue of your last movie that sucked and lost $70M. Then there's the reality that it's a fat chance that 1 in 10 people would purchase a movie for $20 that they can easily rent for $2.

      The reason why DVD's can afford to exist on a $10 to $20 price range is because 12M people already went to a theater and shelled out $10 to see it on the big screen and most of these costs have already been covered. The music equivilant would be a live concert which you just can't do on that scale.

      I'll be the first to say that the RIAA needs to find a new way of doing business, but I'll also be the first to admit that it's not as simple as most folks would think.

      In the case, the article was trying to compare apples to oranges.

      --
      I've dirtied my hands writing poetry, for the sake of seduction; that is, for the sake of a useful cause. --Dostoevsky
    6. Re:DVDs by iocat · · Score: 5, Insightful

      You've vastly overestimated the costs to make a DVD from a movie. Many movies *only* make money once the DVD/video sales are factored in. I believe the original Austin Powers movie was a mediocre success at the box office, but so huge on DVD/video that it spawned an entire (unfortunate) franchise. Movies make about 50% of their profit from overseas and video $$. So the DVD isn't just gravy, it's an integral part of the business structure. As for cost of goods, in the quantities they manufacture, COG for a top of the line DVD is probably well under $2.

      --

      Dude, I think I can see my house from here.

    7. Re:DVDs by letxa2000 · · Score: 5, Insightful
      Obviously the music and movie industry are different. I'll also agree that DVDs can be competitive because they've already made quite a bit of money (hopefully) at the box office.

      However, you need to realize that the customer doesn't care. The question is "I have $20 to spend... What should I spend it on? Chicago DVD with the music for $15.98 or just the music for $13.66?" A heck of a lot of people are going to go for the DVD.

      It's not our problem that the RIAA has a broken business model. In fact, that's exactly the problem. That's why they are suing their customers instead of selling to them. They're trying to defend a broken business model. It's unsustainable.

      They have to compete for a customer's limited entertainment budget. That budget may be split over seeing movies in the theater, buying DVDs, going on a vacation to Cancun... and maybe buying CDs. Their most direct competition is DVDs and in that area they are NOT competitive.

      All they can do is lower their prices DRAMATICALLY and hope that's enough. I'm not talking $10... $10 for a music CD or $15.98 for the same music on a DVD is still a hard sell. I'm talking drop the price down to $3 - $4.99. And even there it's a crapshoot as to whether or not they'll make it. Music is free now because they've overpriced their product and driven tens of millions of customers to get their music for free online. The cat is out of the bag and it's going to be hard to put it back in--even if they lower the price of a CD to $5, a price which might have prevented the original exodus to P2P music sharing, it might be too late for that to bring people back.

  3. Animatrix example by Txiasaeia · · Score: 3, Insightful
    Here in Canada, the Animatrix DVD was about $25. For $30, you could get the DVD as well as the CD soundtrack. This makes *sense*; I don't own a single soundtrack in my CD collection of which I don't also own the DVD.

    On the other hand, not everybody (*gasp*, I know!) has a DVD player, and moreover I'm not even sure how easy it is to rip music from a DVD. Never mind the fact that it's probably evil...

    --
    Condemnant quod non intellegunt.
  4. Yeah but downloading movies still not easy by mozumder · · Score: 2, Insightful

    Even if CD's were priced at $3, it would be much easier to download them instead of buying them.

    1. Re:Yeah but downloading movies still not easy by jarda · · Score: 5, Insightful

      The problem with CDs is that you usually pay for one song you want to and 15 others you're not interested in. With movie DVD, you just pay for what you want.

      --
      "Two beers or not two beers. That's the question." -- Shakesbeer
  5. So what? by Pope · · Score: 2, Insightful

    Seriously. A DVD might have 3 hours of content on it while a CD might have 1 hour of content, but I can bet you 99.9% of the time, the CD is going to be listened to way more than the movie is watched, and therefore is the better value.

    I can't watch a movie walking down the street or on my commute to and from work (or at work for that matter), but I can sure listen to music. These arguments are pretty stupid, IMO.

    --
    It doesn't mean much now, it's built for the future.
    1. Re:So what? by notque · · Score: 4, Insightful

      Seriously. A DVD might have 3 hours of content on it while a CD might have 1 hour of content, but I can bet you 99.9% of the time, the CD is going to be listened to way more than the movie is watched, and therefore is the better value.

      I can't watch a movie walking down the street or on my commute to and from work (or at work for that matter), but I can sure listen to music. These arguments are pretty stupid, IMO.


      Because when I'm about with a group of friends, I say, Hey... Wanna listen to my cd collection? .... Half the time music is something to listen to en route to actually doing something. Music is not in itself usually an activity. A DVD, or movies in general are much more entertaining.

      Also, music takes less money to make than a movie. I.E. I will pay more for a movie.

      --
      http://use.perl.org
    2. Re:So what? by ShinGouki · · Score: 2, Insightful

      Also, music takes less money to make than a movie. I.E. I will pay more for a movie.

      true, however movies have a MUCH MUCH higher ROI than music cds do. a movie has two major revenue streams: theater release, dvd/vhs release. a music cd has just one (artists touring doesn't necessarily provide revenue to the record company, at least it shouldn't if you have a decent lawyer working on your record contract)

      now, for the major difference in the revenue streams. the cd and dvd are basically a wash, both cost about the same or thereabouts. the movie gets shown multiple times per day in thousands of theaters across the country and can remain in theaters for anywhere between 6 months to a year depending on its popularity. a touring band normally plays an average of one show every two days for about three months (some bands do more, some less, it depends on how grueling the tour is you've set up for yourself).

      now, take the average quadruple-platinum cd which would sell over 4 million copies and would constitute a blockbuster of a cd release. this nets the record company something in the area of 48 million bux (assuming $12 per cd). now take a blockbuster hit movie, it'll clear 48 million bux on the first weekend after release and will continue to hoover in the money until it doubles or triples that figure, probably more. THEN The dvd comes out.

      summary: yes, cds are far cheaper to make than movies (unless you're metallica and yer spending 4 million dollars on making a cd, for some odd reason). cds also make FAR FAR less money than movies do. the entire point of the article is to show how the movie industry made fairly good business decisions and managed to not completely alienate every single one of its customers, unlike the recording industry.

      --
      -dk
      Dream with the feathers of angels stuffed beneath your head.
  6. Corporate Greed by salmonz · · Score: 1, Insightful

    That is why people pirate music all the time. The industry rips us off by charging us so much.

    As for Chicago, how would the music alone cost $12? and the DVD with 1 1/2 hour video + making + music be $15? (Also you have to consider the costs of the media it's on... DVD is more expensive than CDR media).

    Comes down to corporate greed and basic capitalism.

  7. Re:Basic Comparison by selderrr · · Score: 4, Insightful

    MPAA: Not the RIAA
    that's nonsense. Wait until the day we have gigabit ethernet in every home and we can copy an entire DVD in
    They've just have less enemies cause there's less easy ways to steal/copy. That's all.

  8. Exactly.... by doormat · · Score: 2, Insightful

    I've been saying this for a while! Why buy a CD for $13-15 when you can get a DVD for 15-20. DVDs have way more entertainment value than a CD. With DVD players in cars to occupy your passangers, music CDs realm of entertainment is also being displaced. Somethings you cant watch a DVD to but you could listen to a CD (work for example). Like its been said, bring CD prices to $9.99 and its a far better value.

    --
    The Doormat

    If you're not outraged, then you're not paying attention.
  9. Nonsense by Stargoat · · Score: 4, Insightful
    The industry has placed a large tariff on new CDs. That is, you are not paying for the music, you are paying for: worthless artists who don't create art, executives, CDs that don't have anything special in them as vinyl used to have, and the RIAA. If anything, Congress should be looking into the music industry for collusion.

    Buy CDs used. They're a more reasonably price, even if still over priced.

    --
    Hoist Number One and Number Six.
    1. Re:Nonsense by uncoveror · · Score: 4, Insightful

      Yes, used CDs are good. The RIAA and affiliated labels get nothing from them, as royalties were paid the first time. This is called the first sale principle. When the original owner bought the CD, it became his or her personal property to resel. As no new copy was made, copyright was not involved in the transaction. The RIAA, and pretentious entertainers like Garth Brooks want to abolish the first sale principle, and grab ill-gotten booty from used CD sales. To hell with them! Other than used ones, don't buy CDs.

      --
      The Uncoveror: It's the real news.
  10. Wrong! by Anonymous Coward · · Score: 1, Insightful

    You are wrong. If cds are priced at even 5 bucks, it's worth it to buy, rather than leaving kazaa to download tracks of dubious quality (Ugh 128kbps). 5 bucks for a cd is perfectly reasonable. Any more than 8 bucks, in my estimation, is daylight robbery.

  11. Overlooked point by big_fish · · Score: 3, Insightful

    Although I agree with the author on most topics. Heck, my household doesn't buy music anymore on principle, but we still buy DVDs. The price point is right.

    Buy one factor is not considered. A CD of music is more readily conveted to mp3s and shared over the internet than a DVD. The shear size of a movie (800-1600+ MB) make them more resistant to on-line sharing than music (for the moment).

    I do have to applaud the movie industry for trying to make the DVD format more attractive with special content: the making of, choice of widescreen or scaled, alternate endings, etc.

    If they further lowered their prices, people would buy more dvds as a matter of convenience. Everyone likes a nice box and cover art instead of two cdrs and a handwriten index card in the case where someone downloaded a movie.

    The article has a nice junxtaposition bewteen the music and movie industry.

  12. Re:Basic Comparison by ergo98 · · Score: 5, Insightful

    How absurd to see the MPAA cast as the "good guy" on here: Wasn't this the same MPAA that was cast as Satan-in-the-flesh when the whole DeCSS fiasco took place? Indeed, the only reason why the MPAA isn't more on the Slashdot hippocrisy-hitlist is due to bandwidth constraints making it a tad onerous to download DVDs (and compressing a 9GB movie down to a CD or two makes for a vast quality difference, quite unlike CD rips where a CD rip that's perceived as the same quality is an easy download). Soon enough, as bandwidth increases, these same jokers will be yipping about how the movie business model is broken, and they should put out movies for free and make money on toys, or some such moral justification.

  13. All the good advice in the world.... by ikkonoishi · · Score: 1, Insightful

    Nothing will change the minds of these people now.
    They see things in a certain way now, and that is the way that they will continue to think.

    The only thing that can make a large change in the way the RIAA is doing business is a complete change in management.

  14. So Much Music is So Bad by webword · · Score: 2, Insightful

    Today I decided to try to find some music. I visited no less than 5 different stores. I listened to maybe 35-40 different albums using the in-store headphones (yuck!) but I was less than impressed. Album after album sucked, with at best 2 good songs per album.

    While I'm complaining here, I have to say that I really don't like the extra material on CDs, and I really can't stand CDExtra. The material slows down my computer, makes it crash some times, and generally is pretty lame. It often autoruns too, which drives me crazy. In short, I am inclined to avoid the new-and-improved CDs even if I think I'll like the band. How do you feel about this?

    Earlier today, I was thinking (contemplating really) about how I buy music on eBay or used on Amazon or trade on Trodo. I decided that I like that approach much better than buying from a store. eBay is at least 1/2 price off and often you can even get new CDs for a low price. On Amazon, you can often get a music preview, so there is no advantage to visiting a brick and mortar (do people still say that?) music store. And, to top it all off, I can find music I like faster on the web. I can find recommended music, related music in the right genres, and more. It is easier and cheaper. So, can anyone explain wny I should actually visit a store? (My only answer is instant gratification -- I can buy and listen immediately.)

  15. They're owned by the same companies! by techmuse · · Score: 4, Insightful

    Most record companies are owned by a company that also owns a movie studio. Warner music / Warner Bros. / AOL Time Warner. Sony Pictures / Sony music. Universal music / Universal (studios) / Vivendi Universal. They even tie in CD releases to movie releases and book releases. They're competing against themselves.

  16. Also plain old quality by YllabianBitPipe · · Score: 2, Insightful

    I can name several films in the past two or three years alone that I consider classic films, that I would watch over and over and are well worth the 20 bucks tops to get on DVD: Lord of the Rings, Star Wars, Pixar movies, etc.

    Out of all the music released in the past three years, I honestly cannot name a single CD I can say the same for. Seriously. The music these days is pure chewing gum. Single songs, maybe. A big maybe. But whole albums? None.

    I don't think I'm alone in recognizing this total pure crap ola level of quality in the music biz.

  17. Re:I never buy DVD's by ScrewMaster · · Score: 2, Insightful

    A few years? You mean a few months. It used to take years for theater films to be released to the mass market, but now studios actually make most of the income from video rentals and sales. And before it comes out there it shows up on satellite or cable. No problem. But I still like the relatively high quality I get from the disc when compared to cable or satellite (although the gap is narrowing.)

    --
    The higher the technology, the sharper that two-edged sword.
  18. Re:Basic Comparison by ScrewMaster · · Score: 2, Insightful

    You're mostly right, and I sure don't like the MPAA, but they do make a much heavier investment in producing each new DVD. Movies cost a lot more to make than music.

    --
    The higher the technology, the sharper that two-edged sword.
  19. Remember, if the MPAA had had its way... by kaltkalt · · Score: 4, Insightful

    We wouldn't have had VCR's at all, and there would be no movie rental/purchase industry today. They were legally forced into allowing this industry to develop, which today they earn 60% of their revenue from. If they had had their way, the only way you could see a movie would be in the theater or on TV (and you couldn't record it as you'd have no VCR).

    The music industry can follow suit. Embrace file sharing, don't try to stop casual non-commercial copying, and sell CD's for $3.99 each. They'd make a fortune.

    The problem in both situations is that, when confronted with technology that seems potentially threatening, suing it until it goes away seems less risky and more economical than embracing it and trying to develop a new business model around its existence. Fortunately for both us and the MPAA, they lost. Now they make a fortune in the video industry. Unfortunately for both us and the RIAA, they have not yet lost (better lobbying) and are suing themselves into oblivion, while hurting end-consumers as well. Especially the 12 year old ones.

    --

    Stupid people make stupid things profitable.
  20. Yes BUT by brunes69 · · Score: 2, Insightful

    The point is that the DVD COMES with the soundtrack on it (obviously, Chicago is a musical, the whole movie *is* the soundtrack). And because it's all just digital an dyou bought the DVD you can LEGALLY record the soundtrack right off the DVD for your listening pleasure with any decent Hi-Fi setup.

  21. So little added value on music CDs by KiwiEngineer · · Score: 2, Insightful

    What bugs me is that on a typical music CD, even very recent releases, there is no track titling put on the disc to identify track names.

    It would cost nothing to put on there, would be of (some) value to people with more recent CD players. As it stands the copied CDs where I put track titling on them are of more use as I don't have to find the jewel box to see what the track title is, as most burning software is intelligent enough to look it up and put it there.

    If we can't get basic value added items on our music discs, what hope is there of competing with DVDs where there is more "bonus features" (subtitles, translations, extra scenes)? (rhetorical)

    --
    Nobody expects the Spanish Inquisition!!
  22. Nothing new for the movie studios... by mpthompson · · Score: 3, Insightful

    Over the last 80 years the movie studios have had their business models dramatically disrupted on numerous occasions. In the 40's the movie studios lost anti-trust suits which forced them out of the exhibition business leaving them only control over movie production and distribution. Revenue and profits plummeted within the span of a single year and started the end of the "studio system" of stamping out movies on a weekly basis. Additional jarring changes came in the 50's with the advent of television, the rise of independent studios and actor/producers in the 60's, purchases by multinational conglomerates in the 70's, and then the introduction of the VCR in the 80's. While it is natural to resist change to the status quo, the movie studios have repeatedly demonstrated an amazing adaptability to change when left no other recourse. Learning to cope with disruptive change may be one reason the industry has been able to turn movie video/DVD sales into greater revenue than the actual exhibition of movies.

    Only time will tell if the recording industry can demonstrate similar adaptability to challenges of their traditional business model or go the way of the Dodo.

  23. Re:Basic Comparison by eddy · · Score: 2, Insightful

    The difference is that at the end of a movie you can see a 100-person+ credit scroll buy. You understand that all these people earn a good living doing what they do, you calculate all the time used and all that expensive equipment, and in your head you reach the conclusion that a DVD is worth about as much as you pay for it (sure, many would prefer a lower price)

    CDs on the other hand. There's the band/artist, and producer(s). Then what? Once upon a time a studio might have been a true hi-tech wonder. Nowadays people know what can be produced with a "home studio". The same PR/administration is needed for the Movie, so no difference there. So we have something that takes less man-hours to produce, but is almost as expensive... and so, a CD doesn't feel like good value.

    And I truly don't think that "but you listen to the CD more than you watch the movie!" is a valid argument -- or at least that it's very overrated. It doesn't matter, because you don't price many other articles by how much you use them! The TV? Nope. The computer? Nope. Computer Games? Not really. My new sofa? Not really.

    The RIAA and cohorts gotta understand that we want to pay for the produciton, not some percieved virtual entertainment value. If we all accepted their virtual value of this goods, then copyright infringment wouldn't be as rampant, no? I like CDs. I buy CDs... seldom, and only if they're from non RIAA labels and without and copy-prevention mechanisms.

    Until RIAA and the labels can explain where all that money goes...

    --
    Belief is the currency of delusion.
  24. Music vs. Movies by Esion+Modnar · · Score: 4, Insightful
    When I buy a DVD, I might watch it one or two times, but I am certainly not going to watch it again, and again, and again...

    A music CD, on the other hand, I could easily listen to the music on it hundreds of times, if the songs are good.

    So even for the same price, music vs. DVD, the music gives me more entertainment value. However, I am refraining from buying either, partly due to economic reasons, and partly due to the fact that I hate the RIAA and the MPAA.

    --

    They say the first thing to go is your penis. Well, it's either that or your brain. I forget which...
  25. Re:Josie and the Pussycats better example... by fdiskne1 · · Score: 4, Insightful

    And the most ironic thing about this post is that Josie and the Pussycats movie is all about super-mega-corps brainwashing the public into thinking they need to buy into the latest pop music fads.

    --
    But why is the rum gone?
  26. Re:Quality by The-Bus · · Score: 4, Insightful

    No, the general quality of entertainers (notice I did not say "musicians" or "artists") on MTV (a channel you watch) has decreased.

    STOP COMPLAINING! Who cares what MTV has to offer!

    Artists on MTV / ClearChannel radio might constitute the majority of music industry sales but it's only because of people like you perpetuating these idiots. DON'T BUY CRAP MUSIC. That's the best way for music to improve.

    I've spent plenty of money on Radiohead, Coldplay, Kronos Quarter, Placebo, John Coltrane, DJ Shadow, Turin Brakes, Goldfrapp, Money Mark, Yo La Tengo, Spiritualized, Royksopp, MC Paul Barman, and countless others. Why? Because I haven't allowed myself to be marketed to by the major labels or Viacom's television network or magazines, and I pick up stuff based on what I like, not what I am told to like.

    Now, this might be a revolutionary way of thinking, but I'm sick and tired of people complaining they don't like artists that are being marketed to them. Go get yourself some taste in music and free will and discover artists on your own and stop complaining about the newest Creed album.

    --

    Small potatoes make the steak look bigger.

  27. Re:DVDs should be $3.00 by WIAKywbfatw · · Score: 3, Insightful

    If the movie was any good it would have made a reasonable profit in theatres and the DVD should be able to be released at $3.00 a copy 18 months later. Anything else is a rip off. At least CDs have a production cost to recoup. DVDs have recouped by the time they are released.

    You obviously have no idea about how much of the pie is taken up by the retailer, distributor, manufacturing, etc.

    Typically, 25-40 percent of the price you'll pay in store goes to the retailer. So, on a $20 DVD that's $5-$8, which pays the rent, the wages, the electricity bills, covers shoplifting losses, etc. Turn that $5-$8 into $.75-$1.20 and watch stores go bankrupt in weeks. That's assuming that you could make and distribute a DVD title (whilst covering the cost of DVD extras, advertising, royalties, etc) for around $2 to acheive your mythical $3 price point.

    Frankly, even large scale DVD pirates (who obviously don't have to worry about half the costs the original publishers have to deal with) would struggle to make any money selling DVDs at $3.

    Time for you to come back from never-never land and learn that there's more to making and selling a DVD than you realise.

    --

    "Accept that some days you are the pigeon, and some days you are the statue." - David Brent, Wernham Hogg
  28. Business survival of the fittest by mabu · · Score: 2, Insightful

    I chalk this up to an even more basic concept. You don't need to compare music to movies... it's even more simple than that:

    The market changes. You either embrace these changes or you die.

    The problem is our global economy (due mainly to legislation like the 1996 Telcom Act) has ended up with less competition and larger players, and when they can't quickly adapt to meet the needs of the new marketplace, they try to scare (RIAA), Mislead (AT&T) or coerce (Network Solutions) consumers into continuing to do business with them.

    We saw Microsoft try to do the same thing when they initially ignored the Internet, but eventually MS had to embrace this new medium. History is full of new market dynamics that the established entities claim is unfair and will put them out of business (mail, telephone, radio, television, VCR, CDR, fax, modems, cellular, satellite, cable, digital photography, etc.) It's a never ending cycle.

    Some companies try to legislate the maintaining of the status quo, like the RIAA is doing now, but it will never work, just like SCO can't stop the open source community by suing IBM. These are the companies that don't want to adapt and lose their spot at the feeding trough and have to start over. Unfortunately that's the nature of things. You adapt or you die. Organizations like the RIAA and SCO are either unable, or unwilling to fairly compete using the new market dynamics, so they resort to feeble bullying tactics that don't work.

  29. Brilliant Idea # 1023 by YllabianBitPipe · · Score: 2, Insightful

    Maybe if CDs were more like DVDs more people would buy them. For example:

    Slap some extra tracks, out-takes, alternate versions, remixes on the cd.

    Stick some multimedia content on 'em: music videos, band interviews, behind the scenes making of, tour videos, live video.

    Stick some "trailers" as the first track of every cd: some sample songs from other artists on the same label with releases coming out soon.

    I don't think any of this content would jack up the price to make a cd in the least.

    1. Re:Brilliant Idea # 1023 by forkboy · · Score: 3, Insightful

      I think this is where the recording industry is slowly heading. There are already standards for DVD-audio. I'm sure once portable DVD player tech becomes a lot less expensive and is integrated into Walkman-like devices, you'll start seeing albums get released with a ton of extras. As it stands now, there isn't a whole lot of room for extra material on a compact disc.

      --
      This message brought to you by the Council of People Who Are Sick of Seeing More People.
    2. Re:Brilliant Idea # 1023 by shadow_slicer · · Score: 2, Insightful

      Can you imagine having a CD like that?
      You set it to repeat and get annoyed every time the CD goes to the beginning by some stupid advertisement for artists that you probably don't even like.
      This isn't as much as a problem for movies, because how often do you set a movie to repeat? (Am I the only one that gets outraged that there are advertisements on a DVD that I *PAID* for? )

      As far as multimedia content, I don't buy DVDs for "multimedia content", I buy them for the movie. Putting more extra stuff on them won't make be buy the cd, especially if I don't like the songs on the CD. It's really just extra junk that you might look at once, but doesn't really add any value.

      Music and Movies are entirely different media, what works for one may not work for the other.

      And finally:
      Brilliant Idea # 1024: Lower cd prices and produce something worth buying.

  30. The reasons are technological by Ralph+Spoilsport · · Score: 3, Insightful
    Let's look at the basics, and everything else becomes clear:

    A redbook CD is about 650 megs (usually less) of uncompressed audio. With audio compression techniques, (MP3, Ogg etc.) the CD becomes about 100megs (at a compression rate that doesn't *completely* mangle the music.) and each track comes out to about 5 megs or so. A CDR can be had for much less than a dollar. The last CDRs I bought were FREE after discounts and rebates.

    So, to copy the Original CDR at "full quality" Redbook audio costs nearly nothing and when compressed to MP3, eats 100 megs on my drive.

    DVDs are already compressed, and if the movie is over 2 hours, they are often VERY compressed. The DVD eats (usually) about 4.2 GIGs of space on my drive.

    Now, until very recently hard drives weren;'t all that cheap. The first one I could afford of consequence was in 1994 when I bought a 1 gig drive for $580 and I got a damn good deal on it. DVDs didn't exist, but even if they did, my computer didn't have a large enough drive to store a movie, unless I wanted to experience it at 180x240 at 15ips and compressed beyond all human imagining. Also, the computers were so slow, that to rip that much data would have taken....a reeeally long time, given I was running a 48 mHz machine...

    So, music was the first to get digitised due to its file size. the rest follows, really.

    When the $400 desktop computer I pick up at best buy has a 4 terabyte drive, and processes data in the multiteraflop range, and has 7.1 audio built right in, and the video card has a gigabyte of VRAM, Hollywood will be making the same kinds of noises that the RIAA are right now.

    Compressed audio sounds lousy, but no more lousy than DVDs presently look. Once the file size for DVDs relative to the hard drives and CPU speeds isn't such a big deal, people will cheerfully rip DVDs and burn them for their friends, and their will be precious little Hollywood can do about it.

    When will the bandwidth to my house via (whatever succeeds DSL / cable modems) in 10 years be? No idea, but I kind of doubt that it will be able to move movies around with the rate of speed I can move a title of MP3 / Ogg choonz.

    therefore, the bandwidth for trading movies over the internet at a reasonable quality will lag far enough behind that Hollywood won't give a rats ass about it for quite a while.

    However, as we all know, the bandwidth for trading music, even entire CD Titles, has been around for quite a while, and hence, the RIAA get their knickers in a twist.

    Therefore: Hollywood comes off looking better than the RIAA, because they know that I might have 1000 CDs of music on my 120 gig drive at a quality not very different from the original, but there is no way I'lll have a 1000 movies on my 120 gig drive at the same relative level of quality. Consequently, they toss out DVD movie titles for not that much more money than the MSRP CD title prices...

    Now, when I have a 60 terabyte drive in my machine loaded to the gunnels with movies, and the bandwidth is there and affordable for me to P2P a full length MPEG2 movie in 7.1 audio in less than a half hour, and I'm just sitting back and burning DVDRs for friends and fambly, Hollywood WILL hunt my ass down, just like the RIAA hunted down the Kazaalings.

    RS

    --
    Shoes for Industry. Shoes for the Dead.
  31. May be it has to do with a business model? by Sleeper · · Score: 2, Insightful

    Really. I think the main problem that these people (record labels and such) just don't care about music at all. A decade or so ago the recording industry transmformed itself into "industry of the cool" but because the music is what a lot of regular people still care about the record companies are having problems right now.

    I think it all happened in the beginning of 90's with rap invading a mainstream and an unexpected breaktrhough from Seatle. It all was raw, real and it was for sure cool. However gangsta rap was really difficult to package in the beginning while Seatle bands just did not want to sell out on the industry terms. So the recording industry took a lesson and started to manufacture all that stuff. And we all eded up with a lot of overproduced shit performed by people we do not care about.

    I think recording industry have been hearing for whom the bell tolls (for them that is) for quite some time. You could see that on those so called "music channels" all the way through the 90s. When they constantly were trying to get in bed with fashion industry, movie industry etc. They just forgot about the music in the process.

    Instead they are trying to fuel the public's interest by all that other shit such as rivalaries between rap artists, who is screwing with whom, extreme sports, lame models that cannot put to words together without spraining their brain and so on.

    Lately they started to produce really wierd shit. Such as punk band that never went on tour but got a major record label (Good Charlotte) or a "garage band" that went straight on MTV awards (White Stripes, I mean they are pretty good, but nothing special. Really).

    Of course all that "manufacturing of cool" requires a huge overhead. So music becomes even more fogotten.

    As for movie industry. They are the same greedy bastards as RIAA. The only thing that they do differently is ... let me see... They still make and sell movies...

    --
    - Back off man. I am a scientist
  32. Re:Quality by dirk · · Score: 4, Insightful

    This is ofcourse totally subjective but, it seems to me the general quality of music has decreased with time while movies have improved.
    I feel contempt when I watch MTV while I actually pay attention to movie trailers.
    I feel used by ("new") musicians while moviemakers entertain me.


    This would be you aging and losing touch with the younger generation. If you ask anyone, at any point in history, they will tell you that things were better "before". Music in the 70s was not all great. Neither was music in the 60s or 80s. It was mostly crap whatever time you want to look at. The difference is that as time goes by, the horrible crap fades and the truly great stuff stays. Look at the top songs of any year and you will see the biggest load of crap that you are thankful you don't remember (top song of :1970-Close to You by The Carpenters, 1975-Mandy by Barry Manilow, 1979-Hot Stuff by Donna Summer, 1984-What's Love got to Do with It by Tina Turner). Music hasn't gotten worse, you've gotten older.

    --

    "Information wants to be expensive" - Stewart Brand, the same guy who said "Information wants to be free"
  33. superficial research by alizard · · Score: 2, Insightful
    Anyone who knows about the history of the DMCA knows that the RIAA and MPAA are Tweedledum and Tweedledee. The DMCA was a result of joint effort. So is the arguably worse Broadcast Protection Discussion Group proposals.

    Through a combination of intelligent design, lucky accident and the good sense to follow the consumer's lead, movie companies settled on the VHS video format for 25 years before gently introducing a DVD alternative.

    Try lucky accident. Jack Valenti of the MPAA is the guy who said that home taping would kill the movie industry when he was trying to get Congress to stop it. If they'd had their way, there would have been no VHS.

    The main difference between the MPAA and RIAA is that the MPAA companies had sense enough to pick a lower price point and add extra content over and above the movie.

    Why is the MPAA fighting alongside the RIAA to kill filesharing?

    P2P pirating of movies simply isn't economically significant. The bandwidth to the home just isn't there yet and isn't going to be as ubiquitous as the TV for years and years.

    So what's the problem?

    Same as the RIAA, it's about control. When those broadband pipes to the home are in place, it'll be possible for the next Steven Spielberg to make a movie on his desktop with capabilities better than the best high-end Hollywood has to offer now, rendering and special effects courtesy of a closet full of PCs loaded with high-end programmable video cards... and consumers will be able to download it.

    Where is Hollywood in this picture?

    For them, that's the problem.

    So they're willing to go along with the RIAA on proposals that'll turn the Net into a controlled domain where the only audio/video entertainment content available for public distribution will be "blessed" by Hollywood.

    Why is the RIAA out there all by itself suing 12 year olds?

    It seems that the RIAA is being the "bad guy" to the MPAA "good guy", and this makes no sense. Gangs of scumbuckets don't make sacrifies for each other unless there's benefit in store for them.

  34. Re:watch it again, and again by Technician · · Score: 2, Insightful

    You don't have kids do you? I have a couple grandkids. I've lost count of how many times I've watched Monsters Inc. Too bad stuff on TV has gotton so bad that it's almost never on. most of it is not suitable for kids except some stuff on PBS and FOX. I remember when all broadcast TV was suitable for all ages. (except the cig adverts.)

    --
    The truth shall set you free!
  35. Re:Not a fair comparison by 16K+Ram+Pack · · Score: 2, Insightful

    How many movies get 'McDonalds Happy Meal Toy' status or Action Figure status. I know lots of people talk about merchandising, but it's probably And some movies don't shift merchandise because their subject matter doesn't suit it or they have a more adult audience. The Reservoir Dogs lunch box with bonus ear, anyone?