Tuesday, January 03, 2006

DVD price wars

Just saw this interesting news:

Distributor hurt in DVD war
DVD prices had dropped by half at two shopping complexes in recent weeks. A group of distributors could not get a key distributor to agree to end the price war.

Price war on the DVD market?

If you are a Megan Media shareholder, how would you evaluate this situation?
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2 comments:

  1. Moolah12:21 PM

    Saw an interesting comment on RHB write-up...


    X Same story in Taiwan. According to an article in Digitimes on September 2005, all Taiwanese optical disk makers, except for CMC Magnetics, reported losses for the period Jan-Sep 2005, due to price erosion.

    See the drastic change in the Disk Makers economics?

    And what about the new blu-ray and HD-DVD discs?...

    i wonder if the disk makers would require new capex to produce these disks onot?

    And if these new discs sells.. i wonder what will happen to the 'old' dvd discs?

    And what will happen to the recently installed expensive machines? Depreciate at a higher rate?

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  2. Moolah9:50 AM

    TC,

    A price war is a price war is a price war.

    So let me ass-u-me some stuff..

    These super-duper DVD distributors have to get their disc somewhere, rite? (where? LOL.. i have no idea)

    With the price war i cannot imagine these distributors not asking their suppliers for some sort of assistance (ie lower prices).

    If so.. surely them disc manufcatures will be affected too!

    Tiok boh?

    ReplyDelete