Mark Cuban explains it all
We’ve been talking about how Mark Cuban means to revolutionize the way movies are sold for months. Release movies in all formats (theaters, DVD, and PPV) at the same time, so consumers can choose when, where, and how they see movies. Share the profit with studios and distributors. Now, on his weblog “blog maverick,” he has finally shared his thought process, more or less in full. A quote:
How many DVDs of a title could be sold in theater to viewers who just saw the movie?
How much marketing support could come from DVD retailers and rental outlets to promote both the movie in theaters and for day and date availability in their stores?
How big an order would retailers and renters place that could be used to expand the marketing for the theatrical release?
How much money will be saved by not having to invest in a 2nd wave of advertising for the DVD release?
Would the net value of all the above be more than 1 pct in incremental revenue and cost savings? And if it is, what would be wrong with sharing 1 pct of DVD sales and rentals with theaters?
A very interesting read, but perhaps more interesting are the 90 or so comments at the bottom of his post, which communicate a variety of views, suggestions, questions, and opinions. If you have some free time, sift through them for an increased understanding of the market.
Found via Hackingnetflix