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Where is the profit in Blu-ray or streaming online release?

Your costs Your income
  • Blu-ray authoring
  • Wrap and disc art
  • MCAA rating
  • Bar code
  • Marketing
  • Distribution
  • Residuals and royalties
  • Manage it's life span
  • Unit sales at premium price
  • Sales at discount price
  • Co-op advertiser's sponsor & inserts
  • Streaming copy VOD sales
  • Internet sales
  • blu-ray authoring flowchart

    Yes, it's complex, but we manage it for you.

    Click to enlarge


    Close Up - Costs and Profits

    Case examples - Table of Contents

    First run content with distribution - 3 month sales targets:

  • A) 3 months sales - Under 5,000 units
  • B) 3 months sales - Between 5,001 and 10,000 units
  • C) 3 months sales - Above 10,001 units
  •  

    Limited release disks created on demand - Annual sales targets: (Customer can mix episodes)

  • D) Annual sales - Less than 2000
  • E) Annual sales - Greater than 2001
  •  

    VOD (Video on Demand), Streaming and File Services

  • F) HD satellite to Cable Programmer
  • G) Streaming Internet protected copy
  • H) Digital Copy on DVD as part of the Blu-ray release
  •  

    Image of Blu-ray discs and cover art


    Suggested mix of Blu-ray features.

    Find the sample case that matches your resell goals.



    First run content with distribution - 3 month sales targets:



    Example cases:

    A) 3 months sales - Under 5,000 units

    1. Full quality cover and disc art
    2. HTMV menus
    3. Full range adaptive encoding
    4. Limit extras to 2 - 3 most popular for this title. If sales take off, you can release an extended version.
    5. Co-op with promotional co-sponsor, advertiser & coupons.
    6. Look for extra streaming revenue: VOD to Cable TV or Internet release.

    HTMV Menus

    Encoding - Full

    Extras - 3

    Co-Op Ads

    VOD

    Stream



    Click to enlarge chart

    Click to enlarge


  • Profit starts at 1,800 unit sales for $15 / disc wholesale.


  • Profit for $8 / disc sell through starts at 4000 unit sales.


  • Minimum order is 2500 blu-ray discs.


  • B) 3 months sales - Between 5,001 and 10,000 units

    1. Full quality cover and disc art
    2. BDJ menus
    3. Full range adaptive encoding
    4. Extras - 6 or more
    5. Co-op with promotional co-sponsor, advertiser & coupons.
    6. Look for extra streaming revenue: VOD to Cable TV or Internet release.

    HTMV Menus

    Encoding - Full

    Extras - 6

    Co-Op Ads

    VOD

    Stream



    Click to enlarge chart

    Click to enlarge


  • Profit are $41K positive for $15 / disc wholesale 5000 units.


  • Profit for $8 / disc sell through starts at 5000 unit sales.


  • Case B has a few more extras that raise the authoring cost, compared to Case A.


  • C) 3 months sales - Above 10,001 units

    1. Full quality cover and disc art and fold out extra cover with collector booklet
    2. BDJ menus
    3. Full range adaptive encoding
    4. Extras 8 or more
    5. Digital Copy
    6. Co-op with promotional co-sponsor, advertiser & coupons
    7. Look for extra streaming revenue: VOD to Cable TV or Internet release

    Java (BD-J) Menus

    Encoding - Full

    Extras - 8

    Digital Copy

    Co-Op Ads

    VOD

    Stream



    Click to enlarge chart

    Click to enlarge

  • Profits are at $97K for 10,000 $15 / disc unit sales.


  • Profit are at $27K for 10,000 $8 / disc sell through.


  • Case C has several more extras that raise the authoring cost, compared to Case B.




  • [ Back to Case Examples   -   Top ]



    2) Limited release disks created on demand - Annual sales targets: (Customer can mix episodes)

    On-Demand is currently available only in DVD.

    Blu-ray on-demand to be available soon.

    Costs below are preliminary and may change.



    Example cases:

    D) Annual Sales - Less than 2000

    1. Template style cover and disc art
    2. HTMV menus
    3. Full range adaptive encoding for titles longer than 100 minutes. For less minutes, pre-set HD high quality high bit rate.
    4. Limit extras main motion menu only.
    5. Co-op with promotional co-sponsor, advertiser & coupons.
    6. Look for extra streaming revenue: VOD to Cable TV or Internet release.

    HTMV Menus

    Encoding - CBR

    Main Menu Motion

    Co-Op Ads

    VOD

    Stream



    Click to enlarge chart

    Click to enlarge


  • Profit starts at 1,000 unit sales for $19.95 / disc.


  • Profit starts at 2,750 unit sales for $16 / disc sell through.


  • Case D uses CBR Constant Bit Rate encoding for content under 100 minutes.


  • Discounts for large amounts of on demand disc fulfillment may be available.


  • E) Annual Sales - Greater than 2001

    1. Template style cover and disc art
    2. HTMV menus
    3. Full range adaptive encoding for titles longer than 100 minutes. For less minutes, pre-set HD high quality high bit rate.
    4. Limit extras main motion menu only.
    5. Co-op with promotional co-sponsor, advertiser & coupons.
    6. Look for extra streaming revenue: VOD to Cable TV or Internet release.

    HTMV Menus

    Encoding - CBR

    Main Motion Menu

    Extras 2

    Co-Op Ads

    Stream



    Click to enlarge chart

    Click to enlarge


  • Profits are at $20K for 5,000 $19.95 / disc unit sales.


  • Profit are at $1.3K for 6,000 $16 / disc sell through.


  • Case E has 2 more extras that raise the authoring cost, compared to Case D which makes sell through profits too slim. If sell through prices are expected, Case D should be used instead.


  • Discounts for large amounts of on demand disc fulfillment may be available.


  • [ Back to Case Examples   -   Top ]



    3) VOD (Video on Demand), Streaming and File Services



    Example cases

    F) HD satellite to Cable Programmer

    1. Conversion to Satellite uplink ready file
    2. Interstitial ad inserts
    3. Explore alternate markets for VOD delivery

    Co-Op Ads

    VOD

    VOD HD encoding and ad insertion available at hourly session rates. Call for more information.

    G) Streaming Internet protected copy

    1. Conversion to Internet ready file
    2. Promotional ads pointing to streaming site
    3. Interstitial ad inserts
    4. Explore alternate markets for Internet delivery

    Co-Op Ads

    VOD

    Stream

    Encoding for the Internet is the same as Digital Copy work for blu-ray DVD's. Commercial Internet sites may add copy protection and ad insertions. Various options and formats are available to serve the video online. Call for more information.

    H) Digital Copy on DVD as part of the Blu-ray release

    1. Conversion to Ipod, PC / Mac Playback file
    2. Interstitial ad inserts

    Digital Copy

    Co-Op Ads



    Price to be determined.



    [ Back to Case Examples   -   Top ]



         Visionary Productions Blu-ray High Definition Official Authoring



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