Articles About Cash And Money

Who's Making Money Off DVDs?

I received a few requests over the past couple weeks to explore what I think has happened to the dvd business, and by direct affect, independent film distribution. Before getting into that it's neccessary to remember just how important dvd revenue is for a profitable independent film distribution model. TV sales were always a crap shoot for most independent and arthouse theatrical releases, especially those in a foreign language. Even if a film did secure one, the license fees were welcome but insubstantial. This left dvd sales. And for about ten years, which not so coincidentally parallels the rise of independent film in the marketplace, dvd successfully underwrote most independent theatrical releases. Now that this revenue stream is reduced, it is compromising every area of independent distribution, which of course will quickly affect independent film production--investors stop spending money on losing ventures (its how they keep their money).

So if video killed the radio star, who put the button on dvd? There are a number of factors that have contributed to the steady decline of dvd revenue. I have laid them out chronologically for us to look at.

1. Too many mediocre films have been released theatrically and then on dvd. IFC Films is a big culprit in this regard. Remember that they have a tv channel to feed and so their agenda is different from every other independent distributor. Films can be ok and still be acceptable on television. But at $30.00 a pop at Borders, they better be a hell of a lot better than ok if you buy one. The net result of too much mediocrity is a chastened customer who concludes that their average dvd purchase will no longer be worth the money. The cache, or perceived value, of any one dvd has been at the heart of dvd's popularity for all movies, but especially independent films. This devaluing of the average dvd has been a major factor in the medium's decline.

2. The rise of Netflix. Their business model is great for consumers, especially in the short run. However, because of their setup, Netflix can service their customers with roughly 20% of the inventory that a brick and mortar chain like Blockbuster needs. Netflix can simply mail their copies around the country while Blockbuster and Hollywood Video must stock each store with at least one copy. This descrepancy has pressured Blockbuster in particular, to cut back on the number of independent titles, and units of these titles, that they order. We're talking thousands and thousands of units that are no longer being purchased. A subtler impact from Netflix is the decline of the browsing experience. While their website continues to improve, it is still a far cry from the experience of strolling through Blockbuster to see what seemed appealing that evening. Brick and mortar rental stores provided independent titles with a level playing field to compete with the Hollywood releases. If a film looked good in the box, had some interesting critical quotes, etc., consumers would give it a chance. Finding that same film on Netflix without already knowing the title is akin to finding a needle in a haystack.

3. Collapse of retail sales for independent and arthouse titles. Remember Tower Records? As financial pressures have mounted on the big retail chains, and they see their competitors go out of business, they have become more and more reliant on fast selling product, including dvd. Even if they are making less money per unit, these retail chains have convinced themselves that they are better off devoting entire shelves to Spider Man 3 than stocking slow, but steady selling independent and arthouse titles. Now with the occassional exception of Borders and Barnes And Noble, there is no retail presence for independent and arthouse titles in retail. I am sure that factors 1 & 2 also contributed mightily to this situation.

4. The rise of Video On Demand. Why even bother with Netflix if you can sit on your couch and browse through a decent, if limited, selection of films to rent by clicking a few buttons? The answer should be obvious. I think that eventually the independent and arthouse catagories will have to be included by these services, or website delivery connected to the tv will do it for them. But until that happens the independent and arthouse titles are in a pickle.

So that is why I think dvd sales for independent and arthouse titles have declined so much over the past few years. Feel free to add your two cents in the comments section. Are things different regionally? Does high speed internet and digital tv delivery change things? I am curious to learn what you think.

Bruce Frigeri is a writer for IndieFilmChat.com

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

MORE ARTICLES:

Quick Cash Loans Online - A Fast Way to Get an Emergency Cash Advance
If you need a fast way to get an emergency cash advance, then apply for a quick cash loan online. Payday loan companies now offer instant approval with their paperless process.

Cash Out Refinance Mortgage Loans – Home Equity, 2nd Mortgage or Cash Out Refinance Loan
There are some definite benefits to doing a cash out refinance. Just make sure that overall you are not going to be spending more money in fees and interest doing a cash out refinance as opposed to a home equity loan.

Cash Til Payday Loans - When Is The Best Time To Get A Quick Cash Loan
There are times when a cash advance loan or payday loan may be a good way to get you out of a tight, financial scrape. There are times when a payday loan may be a wise decision.

Saving Money: Quick Cash, High Cost
I didn't think it was possible. But it is.

Discover Fast Cash No Credit Check Loans For Your Emergency Cash Needs
Payday loans, which are also known as paycheck advances, have become increasingly prevalent in recent years. There are a growing number of men and women who find themselves with so many bills to deal with or an emergency situation that they have to have some source for immediate cash. The mechanics of payday loans are simple. Payday loans are extended by credit companies as cash advances and are paid back by the borrower when the next paycheck is received. Most payday advances have two week terms and are for amounts between $100 to $1500. Recently, federal legislation was enacted to cap the interest rates on these type of loans below 40% APR.

Cheap Payday Advance Loan: borrow money through cheap payday advance loan
Resources are limited for lending money and requirements of money are plenty because the people meet day to day worthless expenses. Diminishing these problems cheap payday advance loan gives you a potential offer. Cheap Payday Advance Loan is the short-term loan availed between two consecutive paydays. Cheap Payday Advance Loan can be availed by all the people who are working and earning enough to repay the Cheap Payday Advance Loan. Credit history does not matter to borrow Cheap Payday Advance Loan for the lenders who provide Cheap Payday Advance Loan, whether you have good credit history or bad credit history you are eligible to avail Cheap Payday Advance Loan.

Compare Payday Loan or Cash Advance Lenders Online Before You Borrow
Comparing payday loan lenders, also called cash advance lenders, online guarantees that you will find the lowest rates and best terms. Payday lenders are required by law to post their rates and terms, so making comparisons is just a matter of a few clicks of the mouse.

Payday Cash Loans: Urgent Money till Next Payday
You never know when you will be in a tough situation and will require money within a short notice. Nobody can foresee the future and the future is not in your control. A sudden utility bill of an unexpected amount or any medical emergency can make you suffer financially. Even in the days of festivals you may need some urgent cash to buy gifts for your friends and family. You may not have sufficient reserve of funds to meet the urgent requirements and the next payday may also be far away. In those situations you can apply for a payday cash loan.

Faxless Payday & Cash Advance Loans - Fast Cash, No Faxing Loans, The Easiest Payday Loan Process
If you are in a hurry for a payday loan, the last thing you want to have to do is fax in your documents of verification. That's no problem, nowadays, you can find many payday loan or cash advance loan companies that can verify your income and identification without you having to fax in any documents.

Fast Cash Loans - When You Should Borrow and When You Should Wait
A fast cash loan should be an option used as a last resort to avoid a financial emergency. With its interest rates, a cash loan should not be used to purchase the latest gadget or fashion item.

Shaking Your Money Tree: Seven Ways to Make Quick Cash
Does your business have a money tree you can shake when a little extra cash is needed? Every business should have one!What I mean by a money tree is something you can do to quickly generate revenue when you need it. Where can you find a money tree? Although you can't buy one at your local garden store, they are more common than you might imagine.

Payday Loans Cash Advance Fast Money Canada 310-Loan
Come payday and everybody is truly happy, a few days into the month and when the cash situation starts getting a little tight we tend to look forward to the next payday. After receiving the pay, the routine is to first settle all the bills. After this customary practice is completed the amount remaining is the actual disposable income which may be insufficient in case of a contingency. A Payday loan would be ideal in such a situation.

First Cash Loan: Cash To Meet Your Financial Emergencies
Life is unpredictable. No one knows what will happen in the next moment. Cash is something that one may need for any reason, any time. Shortage of cash leaves a person in a firtghtening position. For most people a financial crisis is not unexpected towards the end of the month. However, there are other expenses like medical emergencies, school fees, maintenance of a vehicle that will place everyone under pressure. To meet all these basic family expenses Fast cash loan is a handy and convenient way to get cash in advance. Considering all these things Direct Cash Now has come up with its fast cash loan offer, a fast application process to provide you the money when you need it.

Online Cash Loans: Fast and Easy Cash Loans
As we all know, people have many needs. Some are planned and some cannot be planned. For the unplanned and planned needs many people are not prepared. So online cash loans are designed to help these people in their time of need.