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Warner’s Experiment with Reduced Price Blu-ray Titles Has a Catch
Sunday, July 13th, 2008 at 4:00 PM - by John Martellaro
Warmer Home Video will experiment with a retailer rebate program in the fall that will result in the cost of some popular movie titles on Blu-ray selling for as little as US$17, according to Video Business. However, Warner doesnt want customers to get too accustomed to the idea.
The rebate program allows retailers to order certain titles at current costs, but receive a rebate when the disc is sold. The retailer costs should end up at about US$11 and the retail cost at about $17 to $20.
Titles include: The Fugitive, Enter the Dragon, Clockwork Orange, The Shining, The Aviator, Road Warrior and Swordfish.
An unnamed source disclosed the corporate thinking: the plan is to entice customers to make some low cost purchases and boost the Blu-ray business without devaluing the Blu-ray format as a whole.
"They are trying to get this software business going," said one source. "But its really a double-edged sword. Were happy to be able to offer it, but it can be a slippery slope. Consumers might get in the mindset that they want everything discounted. If that becomes the case, we will shorten the life of Blu-ray just like we did with DVD."
The key phase was "we will shorten." One interpretation of that statement is that next generation disc technologies are being developed and if, in an explosion of competition, Blu-ray titles drop like they did for a $5 DVD, the movie industry will try to roll out a new, more expensive, more profitable technology to make all the Blu-ray titles obsolete -- and force a start of the technology upgrade cycle all over again.
With the debilitating Blu-ray/HD DVD war still fresh in memory, that kind of strategy and thinking attributed to Warner may leave a bad taste in the mouth of many videophiles.
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