Off Topic Messages

Free DVD's with Papers - How Do They Do It ?

Tue Oct 11, 2005 3:22 pm

Free DVD's with newspapers are getting more & more common.

How can they afford it ?

Well, it isn't as expensive as you might think !

This is from the BBC News site today:

"Knock-out 10,000 DVDs and you're looking at maybe 34p each; 100,000 at 25p each, half a million at 23p each.
So when you get into the millions, which are what the tabloids sell, it's even less."

Last week we calculated 3m DVDs were sold in the UK, compared to 10m cover mounts given away with papers

Just think what we paid for the Aloha and 68 Special sets !

Some profit margin, eh ?

Tue Oct 11, 2005 6:07 pm

The material-cost for a DVD is 23p but then there are copyrights to be paid, the distributor needs to make a profit and so does the shop/mailorder company that sells them.
These newspapers strike a deal: we distribute 1,000,000 DVD's but we pay a flat fee rate for copyright, let's say 5p per DVD.
There are no "extra" distribution costs and the profit is in the selling price of the newspaper. And because of the "free" DVD enclosed with the newspaper, they sell more newspapers!