DVD profit margins double that of VHS
> The most interesting information details the strength of the DVD market. Between 2002 and 2003, MGM saw a 40% boost in DVD shipments in North America, and 53% increase worldwide. One slide shows just how quickly DVD has caught on: it took only five years for 30 million DVD players to be sold, compared to circa 8 years for CD players, and 10 years for PCs to reach that volume. All of this translates into a booming market, which helps explains the considerable profit margins attached to DVDs. This slide indicates that net profit margins on DVD sales are 50-60%, while the lingering VHS business sees 20-30% net profit. To put this into plain English, your average $20 DVD apparent costs around $9 to produce, advertise, distribute, etc., leaving about $11 on top as pure profit. For an industry supposedly under dire threat from piracy, things look pretty rosy.
DVD profit margins double that of VHS
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DVD profit margins double that of VHS
> The most interesting information details the strength of the DVD market. Between 2002 and 2003, MGM saw a 40% boost in DVD shipments in North America, and 53% increase worldwide. One slide shows just how quickly DVD has caught on: it took only five years for 30 million DVD players to be sold, compared to circa 8 years for CD players, and 10 years for PCs to reach that volume. All of this translates into a booming market, which helps explains the considerable profit margins attached to DVDs. This slide indicates that net profit margins on DVD sales are 50-60%, while the lingering VHS business sees 20-30% net profit. To put this into plain English, your average $20 DVD apparent costs around $9 to produce, advertise, distribute, etc., leaving about $11 on top as pure profit. For an industry supposedly under dire threat from piracy, things look pretty rosy.