View Full Version : OT - Why do movie DVD's cost so much more that video tape

22-06-2004, 10:13 AM
Why is it that a pre-recorded DVD costs typically $40 while the same video tape costs $30. Surely it costs more to produce and handle a tape than a video.

Is someone profiteering from this ?

22-06-2004, 10:20 AM
i reckon dvds cost waaaaaaay more than a tape..

a blank tape pack of 3 is $10.00
and 1 blank dvd is $10.00 (unless its cheaper somewhere but yeah)

and the dvd has more features than tape..

subtitles, behind the scenes, outtakes...sound etc etc

a tape just has the movie and 1 type of sound and nothing more or less...

and a dvd lasts longer....

22-06-2004, 10:20 AM
Of course they are,and they will charge the maximum that the market will sustain.

Back in the day a Video casette cost 70 to 80 dollars so i wouldn't be too put out,in my view 30 to 40 bucks is reasonable for a movie in a good quality format.

22-06-2004, 10:23 AM
and if you are still young then maybe when u get older..prices will drop like they did with video tapes...

22-06-2004, 10:24 AM
I would imagine that the cost of producing a dvd is less then a quarter of the cost of making a vhs copy,but even then we're talking cents and not dollars.

As an example I do know that a cd costs under 20 cents to produce (with artwork) compared to a cassete costing up to a dollar(hence cd's by right should be cheaper),But in the end your paying for whats on the medium.

22-06-2004, 11:16 AM
You are paying for the quality and features :D

But then again, when you think of it, a new release would cost typically around $39.95 and if they're on special it'll be $34.95 or $29.95. Then after a while, $19.95 to 14.95 for the same DVD movie. At $14.95 they're still making a profit.

I wish the computer retail can have that kind of markup. It's really sad to come and think of it, you're with the latest technology but have the lowest markup on the market. :(

22-06-2004, 11:48 AM
I buy Blank CD-R's in a 50-Pack for about $18, and a 25 Pack of DVD-R's for $25

$10 for a DVD? Heck.. Where are you going??? ECM Music??!

That's less than 20c a CD for me, so when somebody asks me to burn them a copy of Ark Linux and mail it to them, even if I fast-post it at 90c, plus $1.20 for the 4x CD's, that's still only $1.70 so its not putting me out-of-pocket ;-)

Blank DVD's at $1 each (Plus a plastik sleeve for a DVD or CD in either case...) means its easy enough to record XYZ (Be it family videos, latest TV Program / Movies) and burn them to a DVD for later viewing on our XBox.

My answer:
DVD's dont cost more than a Video tape!

22-06-2004, 11:53 AM
I suppose they charge what the market will bear - you don't stay long in business by selling to the lowest bidder. PC prices are a bit out of kilter with this theory - maybe more discerning / better informed purchasers

22-06-2004, 11:56 AM
The original query was about pre-recorded medium.

The answer is that whatever it costs to actually produce the item is largely irrelevant. Sure they need to recover costs to produce the movie, pay all the bills, wages etc, but at the end of the day simple supply and demand is the answer.

If people will pay $40 for a DVD movie, then that's the going rate. If they haven't got many of them and people want them, the price goes up. If they have plenty of stock but no one wants them, then price goes down (Paul Holmes CD anyone??).


22-06-2004, 12:00 PM
Producers of DVDs are making hay while the sun shines. So would you. If people didn't pay $40 for a DVD, you'd see the price drop.

It is the latest and greatest technology. The price will settle back a little but not a lot.

When CDs were first produced, they cost $30. At that time a record cost $15 and a cassette tape about the same. Thats 20 years ago.

Today, CDs cost $35 and records and cassettes are largely gone.

So why did a technology at twice the price kill the others? People accepted it and were prepared to pay the price for what they considered a superior product.

If you could earn $40/hour for your particular skill, and people accepted that, would you reduce to $15/hour? Probably not. Its called Capitalism. And long may it continue!

Graham L
22-06-2004, 03:19 PM
Capitalist Hyena. :D

22-06-2004, 06:26 PM
I would pay less for VHS quality on a DVD with no extras, but they dont have this option. :D

mark c
22-06-2004, 07:21 PM
When the ball point pen was first developed it was released in a flash case to the "high end" at an inflated cost and that market snapped it up wishing to be the "first on the block" kind of thing. Then the marketers released a slightly less flashy product (the technology was cheap) at reduced price to pick up the middle market and then now you get free ball points pens with a packet of floppies. :^O :^O

I make no judgments here but I thought it was a salutary story.

Same thing with lots of items of the "latest thing".

23-06-2004, 10:03 AM
"Today, CDs cost $35 and records and cassettes are largely gone."

Hence the reason I very rearly buy audio CD or DVD movies from NZ retailers. I buy online from Canada. After exchange rate and postage they are still cheaper landed.

Here is NZ it a rip off market . Especially CDs which one month are $35 and 8 months later they are in the bargin bin for $20