[quote name='Space_Butler']I wonder what percentage of those sales were full price sales? Upon release, many stores like Target, Wal-Mart, Best Buy, etc were selling UMD movies for around 12-15 bucks. House of Flying Daggers, retail, is 29.99 . Kill Bill vol 1 is 24.99. The rest are around 19.99. Im willing to bet the VAST majority of these sales were only at places where they were dirt cheap, because I can't believe there are enough fanboys out there willing to pay 30 bucks for HOFD.
I think in the long term, this format for movies is going to fail like all of Sony's other previous movie formats. The only way it will succeed is if ACTUAL retail price drops towards the 10 dollar mark, or if the PS3 somehow allows you to view UMD movies. The only way I can justify paying 20-25 bucks for a UMD is if they have full seasons of TV shows put onto it (supposedly, they recently announced Chappelles show for UMD this fall, but that could just be because it's the best selling TV dvd of all time, and not necessarily indicative of tv shows coming to UMD).
What is really funny is, if you buy a 512 mb stick, and have a dvd drive on your computer, you can get several free programs to rip DVD's right to the stick.[/QUOTE]
The low end price I'm seeing at big retail chains for UMD movies is around $14. This is in the impulse purchase range for a lot people who see a favorite movie on the shelf. (Anyone holding HOTD in this regard should probably closely watched.) These retailers are long in the habit of selling items like this for small margins and it works out the same for Sony and the movie studios in terms of the wholesale price. The cost to produce a UMD, both in producing the master and in manufacturing, is very low. Take the D1 master produced for the DVD version, produce a 480x272 master, then encode to MPEG-4 and make whatever manual adjustments are needed where the encoder needs a human opinion. If there aren't any extended features to deal with, and the four I've watched so far had none, this is a single day's work for an experienced operator. Drawing off the existing data provided by the DVD versions makes these very inexpensive to produce and the wholesale margins pretty good.
A Memory Stick and a DVD rip isn't a good substitute for a professionally produced UMD. The resolution is limited to 320x240 and the image quality transcoding from an MPEG-2 DVD rather than an uncompressed master makes for a lot of artifacts. As well, a lot of people apparently would rather simply buy the full quality UMD rather than invest their own time in transcoding from DVD.