[net.video] Why are prerecorded tapes so ?!$# ex

kevin@ISM780B.UUCP (05/15/85)

       Here is how I understand the difference in price between Paramount's
  video releases and the other studios:

	In the beginning (and now and forever and for all time) the studios
  wanted to make money. But, they never felt they could make a lot of it
  from selling tapes. Certainly they could make some, but not a lot.  So they
  went ahead and began selling tapes. And if it wasn't going to make them
  a lot of money it at least was going to have a high profit margin.  So they
  sold the tapes for 80 bucks or more.

	As the market for buying tapes began to grow Paramount decided that
  if it could sell a lot of tapes it could make a better profit.  The best
  way to sell a lot of tapes would be to sell them cheap.  They'd get good
  publicity from it, make there tapes the biggest sellers, and make their
  profit in sheer number of units sold.

	This strategy works.  However look at the number difference.  The
  other studios make about 50 bucks more per tape sold. They don't have to
  work as hard to sell tapes. Paramount has got to have a big seller to make
  money (and check out the ones they sell at that price, box office hits).
  Plus big box office hits sell well whatever the cost.  Sure they don't sell
  as many as a Paramount tape but when your making 50 bucks more per tape, so
  what.

	 Paramount has said it will not continue to sell tapes at a low
  price unless they sell well. That's Show Biz!

					    -^kevin
				     decvax!cca|ima!ism780!kevin