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Posted by rb on 08/02/07 02:42
>>Actually, even at the start, DVDs were about 1/4 the price of VHS titles.
>
> Again, you're not making a valid comparison. "Rental" vhs prices
> are irrelevent.
As I recall, some studios would typically initially offer VHS titles at a
high price because they couldn't rake in any percentage of the rental
business. After the rental frenzy was over the price would drop. I seem to
recall that Paramount was the studio that first decided to offer "sell
through" pricing of DVD's, figuring a lower price would encourage people to
buy discs rather than rent, enlarging studio coffers instead of rental
outlets.
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