Electronics Makers Find DVD Success Bittersweet
from the high-volume,-low-margins dept
For all the articles about how rapidly DVDs have been adopted and how much money its made Hollywood, there’s another side that’s been left out. As happy as consumer electronics makers are that DVD players are being bought at record paces, it also means that margins have been squeezed and there’s very little profit to be had in selling DVD players. Some companies are trying to sell “premium” DVD players, but consumers have figured out that a DVD player is a DVD player and aren’t willing to spend too much more on extras. Of course, this is just basic economics at work. Competition drives down the price to a point where margins are minimal.