Why do we Pay More for DVD’s?

***Assessable News Article for University***

DVD_video

The standard price for a DVD in Australia is up to 50% more expensive than in other developed nations.

Mark Jacobsen, Information Services Analyst, for the ACCC said that the cost of a DVD in Australia is increased due royalties and distribution fees payable to overseas companies.

“Distribution fees can range significantly depending on the quality of the product”

“By adding these fees, the distribution companies in Australia have to increase the cost for the consumer to keep profits intact” said Mr Jacobsen.

The company who owns the rights to an overseas film has free reign of the fee payable for selling the film in Australia.

Rob Sheaf, Senior National Account Manager, Twentieth Century Fox said that most film distribution companies in Australia have rights agreements with their parent company in the US.

Although distribution fees are part of the excess costs, there are many factors that add to the cost of a film in Australia said Mr Sheaf.

“Economies of scale, local costs and strength of $AU contribute to the variance in local v overseas costs”

 

Veronica Mars JB

 

 

 

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