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The bottom line is that a DVD is a far less risky product to release, and cheaper to bring to market. Likewise, more consumers are switching to digital downloads instead, and distributors are understandably having to think twice about where they spend on physical disc releases. For a lower profile release, one SKU may be all they’re willing to take.
Even online stories (outside of Amazon, who use TARDISes it seems) have a finite amount of warehouse space. Two facings on the shelf, two SKUs, is a tricky sell-on on anything other than a big blockbuster.
With physical media being squeezed at retail, there’s a further challenge in persuading a supermarket to stock a DVD, yet alone give extra space for a Blu-ray too. Here’s another threat facing Blu-ray, too. To be clear: not from people involved in the titles I mentioned in last week’s article. But still, I’ve heard it directly from one or two in the industry now that these licensing costs are discouraging them from a Blu-ray release. Now the exact prices aren’t clear, and work was done in the past to bring some of those prices down.
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We’d have to license the AACS digital rights management standard (compulsory on commercial Blu-ray releases), pay the AACS title key certificate fees, and then pay a royalty on each unit made to the consortium behind the format. The document I’ve linked to there isn’t a fresh one, but I’m told that such fees are still very much an issue.Īs such, say we’re releasing our independent hit Geostorm Origins on Blu-ray. These are costs that DVD releases do not have to factor in. That’s before any kind of margin has been added.įurthermore, as this document outlines, “there are significant per title license fees and a per disc royalty for all Blu-ray discs”. Those companies charge a fee that for a small distributor can add some 50p to a Blu-ray, per disc made. But that’s not the case with a Blu-ray, where a consortium of companies own the standard, and they expect their payment.
Instead, it’s the licensing fees that are the hidden issue here.Īs I understand it, when a company releases a film on DVD, they don’t need to pay a fee for each disc for the privilege of doing so. Even that though isn’t the hidden problem. The actual physical cost of pressing a Blu-ray over a DVD is slightly higher too, as you’d expect. Especially if it’s a recent theatrical release, those masters will comfortably hold the resolution needed for both formats, so the issue isn’t there. The actual core film masters used for the DVD and Blu-ray releases are oftentimes the same. Since that article ran, I’ve heard from one or two people involved in the industry that the added costs of a Blu-ray release are part of the problem. We’re in an era where smaller releases are having to forsake a physical release altogether, in favour of streaming or on demand options.īut there’s also a further complication. This is in part, of course, due to the declining sales of physical media across the board. The Blu-ray has become a not taken for granted option.
That whilst less higher profile films may be getting a DVD release, in many cases that’s as far as the physical version goes. Last week, I penned a feature on this site noting that for more and more non-blockbuster films, the Blu-ray is becoming something of a luxury.
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