How can papers afford to give away DVDs?

3 comments

Having picked up a UK newspaper at Heathrow Airport while travelling, which included a free DVD (The Last Emperor), I was interested in this BBC article that asks how they manage to give DVDs away for free. And how much it costs the newspaper. Buying the same newspaper additionally gave me £1 off any magazine I bought in the shop (so God knows how Mr Murdoch makes money from the Times)

Quote:
"Knock-out 10,000 DVDs and you're looking at maybe 34p each; 100,000 at 25p each, half a million at 23p each. So when you get into the millions, which are what the tabloids sell, it's even less."
Quote:
The artistic royalties for each film, meanwhile, will be signed up for "maybe £100,000 to £125,000", while the lightweight discs are "superb" for storage and transportation.
Quote:
But doesn't the fact that a DVD can be made for as little as 16p suggest customers are being ripped off in the shops?
Mr Castaldo rejects it as a "facile argument". The cost of DVDs sold in shops reflects the "full costs of creating a film, distribution, marketing and selling it."

So are you being ripped off when you actually buy a DVD or not?

Comments

Make the most of it,

I was speaking to my Girlfriend about this today (She works for Empire Mag)...

Essentially there was a legislation passed recently(I don't know specifics) that's stopping all these papers from giving away these DVD's for free.

She was saying that the reason all of the papers are releasing all their DVD's at their moment, is because by next August they hav to get rid of their stock.

Aparrantly it's damaging DVD sales.

:|

The best one was A Private

The best one was A Private Function DVD free inside the Saturday Times many months ago...what a great film - especially considering it costs £11.99 from Play.com at the moment and £14.99 from Amazon UK ;)

From experience

I am not too sure about the DVDs but I have some experience with the CDs they give away in the UK.

What I can tell you is that although those CDs have a distribution in probably millions, as a songwriter, you don't notice ANY bump at all in royalties. As a songwriter if your songs sold in these quantaties at record stores, then you would have a lot of groupies and your bank manager would want to shag you.

I am not sure what the whole deal is in these, and have been meaning to ask someone for a couple of years now.

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