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hawke : I wonder if some of this has also got to do with licensing fees for the DVD discs themselves, which is a Japanese product.
informational link
I have the impression, rightly or wrongly, that the manufacturers of DVD players have to pay license fees or royalties to the DVD consortium of japanese and american manufaturers like Sony, Philips, IBM, etc.
On the other side, DVD discs makers have to pay the royalties for the MPEG technology used, don't know to whom. THis, in addiiton to royalties to the artists and/or movie producers.
All these royalties are sidestepped by the pirates.
But it makes me wonder what portions of a newly released $18 DVD disc goes to royalties and which goes to production/marketing/distribution and which goes to profit mark-ups. If as the article says only $0.05 goes to technology royalties, and if my information is right that only a few cents goes to movie moguls, then a pirated DVD that is virtually identical to the orig, costing only $1.20/disc at the stands here in the Phils. must already cover for the production and distribution plus profit mark-ups for the pirates and its sellers. The pirated DVDs may not have the slick packaging of the originals, but how much do that cost? Makes me wonder where the rest of the $18.00 go. Let me guess: Corporate Greed?</font>