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From: doug@terak.UUCP (Doug Pardee)
Newsgroups: net.video
Subject: Re: Why are prerecorded tapes so ?!$# expensive ?
Message-ID: <558@terak.UUCP>
Date: Thu, 16-May-85 12:40:24 EDT
Article-I.D.: terak.558
Posted: Thu May 16 12:40:24 1985
Date-Received: Sun, 19-May-85 05:05:13 EDT
References: <5260@cbscc.UUCP> <380@rtech.ARPA>
Organization: Terak Corporation, Scottsdale, AZ, USA
Lines: 24

> The primary reason that prerecorded tapes are (for the moment)
> so expensive is that for most of the releases, the sales are made
> to rental club operators.  Each sale represents the equivalent of
> 10 - 20 rentals.  Call it an eventual audience of 40 people.  I
> don't know what portion of a movie ticket goes to the studios,
> but if you figure they get at least $2 out of a $5.50 ticket, that's
> $80 they'd be making from those 40 people under "normal" conditions.

Although I'd believe that the studios think this way, it isn't the way
that things are.  The reason that I don't go to the movies much is not
because I can rent the same movie next year for less.  I wouldn't go
even if I could never see the movie anywhere else.

If the studios want to get me back into the theaters, they've got their
work cut out for them.  They're going to have to start making movies
that I want to see, charging prices that are appropriate (for a really
good movie, current prices are okay), and cleaning up the act at the
theater.

They're kidding themselves if they really believe that rentals are
responsible for box-office drain.
-- 
Doug Pardee -- Terak Corp. -- !{ihnp4,seismo,decvax}!noao!terak!doug
               ^^^^^--- soon to be CalComp