Topic: R3 Discs: The Law of Supply and Demand

[hemisphere]

Fellow collectors hwag kayo magpanic buying, I called up several astro shops..the DVDs are just coming in palang sa shop nila, there was one store even advise me na "sir magpareserve kana baka maubusan ka"
she even told me there are some buyers who gets 2-3 copies of Titanic...hmmmm bad
Honestly, instead na matuwa ako na dumating na ang SE dto sa atin...I felt sad...

Baka matulad na naman tyo sa Tarzan SE, Ice Age EXtreme na nagpanic buying ang tao Pati tuloy yung mga shops naki ride, dey keep on saying wala na wala ng stock and yet hanggang ngayon nagkalat ang copies sa 299...

Remember our ECONOMICS, Law of Demand and Supply !!
I think theres enough for everyone...who knows bka by Dec umabot sa sale toh we can get a copy at 750 or lower dba....
 

actually, i dont feel sad that people are buying legitimate dvds. even if they opt to buy 2 or more copies, fact is they are indirectly fighting piracy and are actually switching/choosing to honor the value of intellectual rights. hard to abide by but very ideal... they may buy it as a gift or reserved.. or they simply love the film.. or the feeling of collecting... or splurging.... whatever their reason is, i find no reason for sadness or dismay.

Tarzan SE and Ice Age ECE, to date, are in limited quantities and availability. 2 out of 4 stores do not hold the titles in stock.

as i have previously posted, the studios are wisening up. based on my observation, they are actually importing less copies to maximize profit and for titles not to end up on occasional sale events.

 

[av_phile1]

Tarzan SE and Ice Age ECE, to date, are in limited quantities and availability. 2 out of 4 stores do not hold the titles in stock.

as i have previously posted, the studios are wisening up. based on my observation, they are actually importing less copies to maximize profit and for titles not to end up on occasional sale events.

 

I don't think local distributors can just import the quantities they want. I read also in this forum that US distributors demand a minimum order quantity for a particular title to be licenced for local distribution.  Anything below that order, the title won't be released locally.  The minimmum order is no a trifling matter, it's quite large.  That's why some titles don't reach our shores. Local distributors like Astro aren't confident they can move a huge inventory at a profit.   

[nicomd]

I don't think local distributors can just import the quantities they want. I read also in this forum that US distributors demand a minimum order quantity for a particular title to be licenced for local distribution.  Anything below that order, the title won't be released locally.  The minimmum order is no a trifling matter, it's quite large.  That's why some titles don't reach our shores. Local distributors like Astro aren't confident they can move a huge inventory at a profit.   

Yes, but it seems lately they are only ordering the MINIMUM required. The latest releases such as Kingdom of Heaven, Episode III, and most likely Titanic S.E. are seen only in limited quantities on stores. That is why they are less likely to have stocks once they go on sale.

I'd better grab myself one once I see this on stores. Don't believe the sales people when they say na "marami" pang stocks. Most likely, they really don't know what they are talking about. Look at what happened to Batman DE. Sabi nila enough daw ang copies for buyers. Pero wala na ngayon. I got one on the first day, and thought about getting another for a gift two weeks later, pero wala na sa stores. Same thing with Episode II DVD. Imagine the frustration of Star Wars collectors who have to settle for an R1 of the Episode II just the complete the saga.

So we can't really blame people who do panic buying.

[hemisphere]

I don't think local distributors can just import the quantities they want. I read also in this forum that US distributors demand a minimum order quantity for a particular title to be licenced for local distribution.  Anything below that order, the title won't be released locally.  The minimmum order is no a trifling matter, it's quite large.  That's why some titles don't reach our shores. Local distributors like Astro aren't confident they can move a huge inventory at a profit.   

i have a theory that asian studios are implementing collective negotiation imposing the number of actual stocks shipped/released to the region.  i dont agree with the idea of minimum order required by US studios nor believe in its existence. this is inhibiting and will put a lot of pressure to the studios, US and local.  minimum orders i believe can be adjusted and not fixed otherwise, asian/local studios would not brave the market even in cases of calculated risks.

based on patterns, i believe this required min order scheme would not work in markets similar to the philippines where legitimate dvd collecting is still considered a luxury and a rich man's hobby--- where economy functions as the primary driver for purchase and taste .

 

[firewired]

Yup that's right. When a title is scheduled for release, there's a specific target that's imposed on a geographic area... Region "3" in our case. It's up to all the distributors in that area to consolidate their orders to hit that number. Larger markets will commit to significant quantities while smaller markets like the Philippines will simply ride on. In other words, it doesn't matter if we order the title or not. If the magic number is met, the title is released. If not, it's dropped for the entire region... not permanently, but it's usually delayed. In most cases, countries like Hong Kong, Singapore, and Korea make quota for the entire region. However, in certain cases (Veronica Mars comes to mind ), lack of interest in one of those big markets kills it for the entire region.

Btw, we're off-topic. Anyone want to start a new thread?

[av_phile1]

Yup that's right. When a title is scheduled for release, there's a specific target that's imposed on a geographic area... Region "3" in our case. It's up to all the distributors in that area to consolidate their orders to hit that number. Larger markets will commit to significant quantities while smaller markets like the Philippines will simply ride on. It doesn't matter if we order the title or not. If the magic number is met, the title is released. If not, it's dropped for the entire region... not permanently, but it's usually delayed. In most cases, countries like Hong Kong, Singapore, and Korea make quota for the entire region. However, in certain cases (Veronica Mars comes to mind ), lack of interest in one of those big markets kills it for the entire region.

Btw, we're off-topic. Anyone want to start a new thread?

So the required minimum order is for the entire region.  If not mistaken, there's already a topic about this on titles that didn't make it here or something like that.  Anyway, the issue cropped up because we were thinking that getting the title at a later date when it goes on sale might be a more prudent idea.  That's because based on observation, as in my case, most of the titles that went on 299 sale have already been bought when they were first released.  And knowing all these new titles will go so sale eventually, why not just wait.    But there's valid argument to get them now, if indeed the stocks are not enough. 

[Mr. Hankey]

However, in certain cases (Veronica Mars comes to mind ), lack of interest in one of those big markets kills it for the entire region.

Oh, that's too bad. It's an excellent show. But on a purely selfish note, at least now I can breathe a sigh of relief over my R1 purchase.

Btw, we're off-topic. Anyone want to start a new thread?

Split and done, boss. 

[wrAth]

now that we have the law of supply and demand vis-a-vis quantity down pat, what about the quality of R3 DVDs in the region? who dictates what?

[vtec3]

now that we have the law of supply and demand vis-a-vis quantity down pat, what about the quality of R3 DVDs in the region? who dictates what?

I agree that local distributors should also take a look into the quality of R3 DVD's. Although there is significant improvement na in this area, sana consistent lang sila with all titles. I have purchased titles upon its release locally and a bit disappointed with the video, sound and packaging quality.  If ma resolve na itong problem na ito then I am sure there will be more demand for original R3 copies 

[av_phile1]

R3 copies in Hongkong are said to be excellent.  So I think the R3 copies here been re-packaged by local distributors using cheap cases and poor printing or using DVD5s instead of DVD9s to bring their prices down. 

[wrAth]

R3 copies in Hongkong are said to be excellent.  So I think the R3 copies here been re-packaged by local distributors using cheap cases and poor printing or using DVD5s instead of DVD9s to bring their prices down. 

i believe i only have one HK edition R3 - The Aviator 3disc. Although its dts track is surely a plus, the grammar of the english subtitles were very very poor, to the point of being distracting.

[av_phile1]

I wonder where they make these subtitles.  Also those DVDs with tagalog subtitles. Are those R3 titles with tagalog subtitles also released in other R3 countries?

[hemisphere]

I wonder where they make these subtitles.  Also those DVDs with tagalog subtitles. Are those R3 titles with tagalog subtitles also released in other R3 countries?

yes.. Fox titles usually carry the same set of subs per region.

 

[daigoro]

If the local distributors keep on bringing products with great value in terms of quality and price like Titanic and Batman Begins DE, everybody wins. Both buyers and sellers will benefit.

[hemisphere]

agree diagoro. 100%

hope studios would focus on the niche market or "already consumers" and maximize profit coming from that segment.

 

[wrAth]

slightly OT question:

why are locally sold concert/music DVDs so (relatively) expensive? they never seem to go on sale and some specialty items are far more expensive than their Region 1 counterparts.

[d4nu65+3R]

they used to be priced in the 1500 range before but nowadays, i am noticing a lot of concert dvds at oddyssey priced in the 600 - 800 range.  particularly of interest was eagles' hell freezes over and a cure concert i could not recall the title going for 599? not sure.  yun nga lang, the choices are limited to artists that have an audience here in the philippines.  most of the time you wont find any titles from artists that are not really known or sell here.   dun ka talo dahil yun talaga mahal dahil you have no choice but to get the r1 version.  which brings me to another question, are these titles r1 versions?  i seem to recall seeing a motley crue greatest video hits dvd having an all region marking.  and nope, this was not pirated.

[viperkid]

Most of my DVDs are Region One like my whole Star Wars Saga. But I've noticed like most of you did, that most dvds are now lat a lower price but they are quite crappy and they don't have that "little booklet". Like when I bought my 2001:A Space Oddessy for only P250 it was still the same movie with some of the first disc features intact but I still need my features and behind the scenes materials. I think it should be best if they should released those Deluexe/Limited Editions DVDs and please I'm begging New Line and Miramax because they have crappy distributors here in the Philippines namely C(rappy)-Interactive and Star Records. I'm afraid Magnavision is following those footsteps with just a handful "worth it" dvd releases over the past month.

[lord_vader]

If the local distributors keep on bringing products with great value in terms of quality and price like Titanic and Batman Begins DE, everybody wins. Both buyers and sellers will benefit.

There was an interview with Edu Manzano re: his experience as OMB chair, printed in last Saturday's issue of the Inquirer. One question goes like this: Why can't local distibutors just bring down the prices to fight piracy? Edu answered that he hopes this will happen soon. He said that in China, Warner Brothers is selling its DVDs at only $3, around P150.

Kelan kaya mangyayari to dito?

[Mr. Hankey]

He said that in China, Warner Brothers is selling its DVDs at only $3, around P150.

Kelan kaya mangyayari to dito?

Actually, I know someone who went to China and bought a few of these titles. They're like the 299 budget releases of Magna locally - DVD5s without special features. So if Warner suddenly brings down local prices to this level... be careful, you're probably getting what you're paying for.

[maverickph]

I guess kung "The Law of Supply and Demand" of DVD is the main topic here dapat mag launch ang distributor ng Pre order request para malaman kung mataas ang demand kaysa supply.  Di naman maikakaila na ang pinaka main buyer para sa mga new releases ay member ng pdvd. Either pickup sa accredited or delivery from any point in the phils pwede naman sa dami ng courier natin ngayon.  Para naman di maubusan yung lahat ng interested mag order ng mga special dvd releases para malaman kung ilan pwede iaccomodate.  Sabihin na nating medyo un ethical kung bumili yung iba ng marami unit irregardless kung ano ang gagawin nya dun but in this kind of business lets face it na sila ang may mas mataas na purchasing power kaysa marami.  Para sa akin diskarte lang kung paano ka makaka avail ng much awaited dvd kahit na sabihin pa na wala ka pang budget para dun.  Ang alam ko pag ginusto mo gagawa ka paraan just to satisfy human wants.

[rascal101]

Legit DVDs do not sell as much as their pirated counterparts. Why? Due to costs. For the businessmen, even if they get legit DVDs at a very low price they'd still have problems disposing them. Since the supply is quite high but the demand is low, the price will be high. Hence if you want big bucks or easy return for your investment the pirated stuff is easier. Am not advocating piracy ... just that a lot more people are attracted with low costs ...

If our government will really go after this pirates then we can legimately expect the prices to come down.

[av_phile1]

Legit DVDs do not sell as much as their pirated counterparts. Why? Due to costs. For the businessmen, even if they get legit DVDs at a very low price they'd still have problems disposing them. Since the supply is quite high but the demand is low, the price will be high. Hence if you want big bucks or easy return for your investment the pirated stuff is easier. Am not advocating piracy ... just that a lot more people are attracted with low costs ...

If our government will really go after this pirates then we can legimately expect the prices to come down.

If the supply is high and the demand low, the price will be low not high. 

There is some obvious reason prices are coming down with those 199, 299 and 399 DVDs (together with quality) is due to the presence of pirated stuff that they are trying to combat by directly competing with them .  If not, the prices will remain high as they did during the fledgling DVD years.  Local R3 DVD is essentially monopolistic with exclusive distribution and pricing rights.  If not for the alternative market which are those imported R1s and R3s from Honkgong, they have a captive DVD market all to themsevles.   They could very well remain with high prices, if not for their desire to wean the market away from the underground markets. 

[rascal101]

If the supply is high and the demand low, the price will be low not high. 

Yes this is correct logic but how come prices are still high? Business can afford to price it high because he can afford to? Even if it doesn't sell he has ways to compensate? Baka siya rin pala nag bebenta nung pirated. He is just showing legit DVDs to cover for his illegitimate business?

[av_phile1]

Yes this is correct logic but how come prices are still high? Business can afford to price it high because he can afford to? Even if it doesn't sell he has ways to compensate? Baka siya rin pala nag bebenta nung pirated. He is just showing legit DVDs to cover for his illegitimate business?

The local primary market for DVD is essentially a luxury market to begin with.  With monopolistic qualities, pricing is dictated by the local distributors across all major outlets.   They can do local packaging which they often do to maintain or improve their margins.  The market is essentially not so price-sensitive.  It can afford to patronize the often more expensive alternative markets comprising of imported R1, R2 and R3 from hongkong and korea or online stores.  So the prices of regular releases remain high.  Because they know the local market can afford them.  It is the local distributors' effort to compete with the underground market for pirated DVDs that they came up with budget versions - cheaper but with crappy packaging and some with dilluted video bitrates.  For this effort, they not only brought the prices closer to the pirated ones, but also made them look like pirated ones.     I really doubt if doing this was the right thing to do.  The primary market usually does not compete with the underground market.  The two address different and often disparate market demographics.

Now whether the businessmen behind these local DVD distributors are also behind the underground market, that's possible but it remains pure conjecture you may want to substantiate. 

[rascal101]

I wanted to buy legit DVDs but their pricing is just too high. Why can't businessmen package a deal wherein you buy x number of DVDs and you get significant discounts much like what is offered in the US. These high prices in a poor country such as the Philippines do not get you distance.

[av_phile1]

It's really a question of supply and demand.  Let's face it,  DVDs released locally are really targeted towards the more affluent market segment.  And that's really a small market.   Unlike in the US where the pricing can be flexible because the market is much broader.  Your typical $18 DVD is just 2% to 3% of the US minimum wage (depending on state).  Whereas here, the regular P895 DVD is already 14% of the minimum wage.

With the possible exception of Warner Phils, these businessmen engaged in local DVD distribution are actually your middlemen between the Studios and the market.  They have to maintain a profit margin.  Sometimes, they'll take a dive in prices just to clear their inventories or when they had a hit release that can offset losses from other titles.  And for the most part, their pricing is really a function of studio prices or from regional distributors.  Warner can seem to afford to bring their prices lower because they employ no middlemen distributors.

[Den MAGNAVISION]

hello im from magnavsion home video ask me any question about my company about universal home video, paramount home video, dream works home video, sony pictures home entertainment weve got it all

[techdude]

Hi Den, nice to see someone from the distributors browsing this forum. 

I have to say Magnavision is one of the better local distributor of DVD in the sense that most new DVD titles (whether popular or not) get released.  Would have love better packaging on those 895 titles than plain case and one page insert...  ganoon din ba ang R1 release ng Sony/Universal etc...

Just update us on upcoming releases and new titles which has hit the streets...

[chinoh151]

HI Sir Den,

Please inform us of upcoming titles please.