Quote:
Originally Posted by NemesisEnforcer
I agree. There are companies in porn valley that can?t break the 1,000 piece barrier on a new release anymore. Let?s do the math; 5 scenes at an average cost of $2,000.00 per scene, editing, artwork, and replication. With a new release average price of $10 per piece combined with the aforementioned expenses, this means that on street date, they are already in the red on a DVD release. Why do they still produce? So they may collect on outstanding invoices. It?s common practice that if the distributor does not get any new releases, they don?t pay previous invoices. There are distributors that are over 365 days in arrears and the producers want their money.
A number of companies have stopped shooting and are now releasing comps as new releases or simply buying content to put on DVD. They can?t afford to shoot anymore.
The good news is that some of these companies are now doing other things to supplement their income.
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Your basis argument is right, many todauy are not shooting because they are not selling. Where you're wrong is the cost of releasing a DVD. $1,500 per scene might just cover the cost of the models, shooters, lighting, sound, make up, location, other costs take it way over $2,000 jhust to shoot the film. Then editing, packaging, duplicating and promotion is more costs. Also I believe that unless the movie is that level they will be getting more like $5. The good movies try to cover all costs with US DVD sales, then there is mobile, Internet, Cable, Hotels and overseas licenses. This is where the profit is made. EU is the same. Just EU sales instead of US sales.
Produce a movie for $10,000 and the danger is it will not sell in many of these markets and consumer loyalty will suck as well after a few editions.
Some DVD companies realised that and many did not. That was the biggest reason for drop in sales once the consumer did not
have to buy.