Disney economics


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Written by Sensitive Stephen am 22 Mar 2001 05:39:22:

As an answer to: alexis77@operamail.com written by Alexis am 22 Mar 2001 04:49:24:

This is speculation, of course, but as I would see it, Disney would not incur those kinds of costs when premastering a DVD version of, say, old Spin and Marty's. I doubt they would pay some outside firm premium fees for conversion, compression, and all the other steps leading to a DVD. I would imagine that they would have their own facilities with all the equipment needed to do the work in-house, along with full-time (and probably under-paid) staff dedicated to recycling new product out of old stuff. To recoup all this investment, Disney would expect that division to churn out a LOT of product. Disney is known for being very concerned with cost efficiency and getting the most out of their investments. They know how to exploit their intellectual property; for example, they release a classic animated film for a few years and then withdraw it, so that demand will build up again for another "limited release." For a fairly straightforward product like releasing old shows onto DVD, I would think it's just a matter of time before they decide to milk the nostalgia cash cow.

I wonder if DVD transfer and pre-mastering might also end up being an off-shore industry the way that cel animation has largely become. TV shows like "The Simpsons" are written and planned in the U.S., but the labor-intensive work of drawing all those cels is done in Asia. It wouldn't surprise me if the same will eventually happen with DVD transfer services.

I was just joking about music recording, you know! But now that I think of it, don't we read all the time about successful recording artists who build their own recording studios? Not the same as recording in a garage, perhaps, but it sounds like it's some kinda trend. Yeah, you and I know that the recording is just a small part of music publishing, just like the printing process is just a small part of book publishing. It's the talent of the person who produces the work--plus the talent and hard work of those who develop, present, and market the work--that is the real story.

Anyways, I'm glad you came back to visit the B.O.Y.S. board. You are ALWAYS a welcome visitor here,

--Sensitive Stephen




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