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Fandango at Home Forum Guidelines

The Fandango at Home Forums are designed to help viewers get the most out of their Fandango at Home experience. Here, Fandango at Home customers may post information, questions, ideas, etc. on the subject of Fandango at Home and Fandango at Home -related issues (home theater, entertainment, etc). Although the primary purpose of these forums is to help Fandango at Home customers with questions and/or problems with their Fandango at Home service, there are also off-topic areas available within the Fandango at Home Forums for users to chat with like-minded people, subject to the limitations below.

Please post all comments in English. When posting a comment in the Fandango at Home Forums, please conduct yourself in a respectful and civil manner. While we respect that you may feel strongly about an issue, please leave room for discussion.

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Terms of Use - User Comments, Feedback, Reviews, Submissions

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Ideas: Sale on Purchases

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    Ideas: Sale on Purchases

    OK, I am one of those suckers that loves a deal. I almost never buy my DVDs at full price. Between BestBuy and Circuit City they have so many good deal on sale DVDs.

    Why does Vudu offer selected DVDs to buy on sale? Offer them for a limited time and see what happens. Am I off my rocker? Would anyone else be more motivated to buy a DVD if there was a short term "sale" price?

    Guy
    Last edited by RonV; 02-14-2008, 11:08 AM.

    #2
    Re: Ideas: Sale on Purchases

    Vudu runs promotions on rental items but I don't recall seeing one for purchases.

    P.S. Uhmm.. there's a separate Evangelist forum?

    Comment


      #3
      Re: Ideas: Sale on Purchases

      Originally posted by Rusdude View Post
      Vudu runs promotions on rental items but I don't recall seeing one for purchases.
      Is there a place where it outlines which movie is on sale?

      Comment


        #4
        Re: Ideas: Sale on Purchases

        Originally posted by Guy Gadois View Post
        Is there a place where it outlines which movie is on sale?
        Yeah, go into find movies and look at the collection placards. You'll see this week things like "Free Classic Horror" and "Free Classic Science Fiction."

        Comment


          #5
          Re: Ideas: Sale on Purchases

          I mean more like the Simpsons movie. I can buy it down the street for $12.99 or $19.99 on Vudu. Next week the Simpsons DVD will go up $19.99 locally.

          Why doesn't Vudu discount new releases for a short period to promote buying?

          Comment


            #6
            Re: Ideas: Sale on Purchases

            Originally posted by Guy Gadois View Post
            I mean more like the Simpsons movie. I can buy it down the street for $12.99 or $19.99 on Vudu. Next week the Simpsons DVD will go up $19.99 locally.

            Why doesn't Vudu discount new releases for a short period to promote buying?
            Hard to say. Here's my guess (my guess and $2.10 will buy a cup of coffee at Starbucks):

            A store selling the physical media will buy copies in volume. As such, there is probably a discount on purchases at a particular volume. So then they can offer a discounted price. Vudu being digital media doesn't really buy in volume and then re-sell product. So there's really no way for them to purchase "1000 copies" in advance at a low price and then re-sell them at a discount.

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              #7
              Re: Ideas: Sale on Purchases

              Don't most store use DVD new releases as a loss leader i.e. they take a hit in order to get people in the store to buy other products. There is no need for Vudu to do this as they are just selling and renting movies. So the discount would come on the backside after the movie has had its run.

              Comment


                #8
                Re: Ideas: Sale on Purchases

                Originally posted by kikar View Post
                Don't most store use DVD new releases as a loss leader i.e. they take a hit in order to get people in the store to buy other products. There is no need for Vudu to do this as they are just selling and renting movies. So the discount would come on the backside after the movie has had its run.
                Originally posted by NA9D View Post
                A store selling the physical media will buy copies in volume. As such, there is probably a discount on purchases at a particular volume. So then they can offer a discounted price. Vudu being digital media doesn't really buy in volume and then re-sell product. So there's really no way for them to purchase "1000 copies" in advance at a low price and then re-sell them at a discount.
                Maybe look at this differently. If Vudu was able to increase the number of downloads their cost per download would decrease. In other words, if sales would drive people to buy then the cost may go down and their profit margin increase. This is all predicated on the fact that their contacts have some type of volume discount. I can't imagine the contracts don't address this.

                my $.03 (just a penny more)

                Guy

                Comment


                  #9
                  Re: Ideas: Sale on Purchases

                  I wouldn't be surprised if contracts had no volume discounts. I haven't heard of Apple getting any discounts on music which is a similar model.

                  Comment


                    #10
                    Re: Ideas: Sale on Purchases

                    Originally posted by Rusdude View Post
                    I wouldn't be surprised if contracts had no volume discounts. I haven't heard of Apple getting any discounts on music which is a similar model.
                    Well that doesn't mean much. Apple isn't noted as being open about contracts or internal developments.

                    With or without volume discount Apple does offer sales on various CDs...

                    Comment


                      #11
                      Re: Ideas: Sale on Purchases

                      Originally posted by Guy Gadois View Post
                      Well that doesn't mean much. Apple isn't noted as being open about contracts or internal developments.

                      With or without volume discount Apple does offer sales on various CDs...
                      It's a known fact that for those deals and promotions Apple works with studios to get them to lower prices, i.e. Apple doesn't subsidize those sales.

                      Also, Apple doesn't actually make much profit (in %) from iTunes sales due to transaction costs, royalties, etc. They make their money on hardware sales -- one of the reasons analysts like Apple so much is because its bills of materials are always pretty low compared to retail prices.

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