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Message: <blockquote data-quote="Grog" data-source="post: 3882946" data-attributes="member: 6183">Actually, this isn't true. DVDs have been a mass-market item for a long time now, so you can bet that the studios have figured out the maximum prices that the market will bear, and are charging them right now. It's basic economics - once an item has been on sale for a while (and oftentimes it doesn't even take very long), the seller will figure out the highest price they can charge before further increases start to result in prohibitive losses in sales.By way of example, say you charge $20 for a DVD. If you double the price to $40, and your sales drop by less than 50%, you made money. So you have a strong incentive to find the price point where the number of sales multiplied by the amount you're charging gives you the maximum profit. And the studios have certainly figured that out by now. They're at the point where raising DVD prices will end up reducing their profits.Think about it - if the studios could simply pass the cost of what the writers are asking for on to the consumer and continue making exactly the same profit that they are now, would they be fighting this hard against the WGA? Of course not. The reason they're fighting this hard is because anything more they give to the writers is going to come straight out of their profits.And anyway, given how little the writers are asking for, price increases aren't an issue anyway. It's not like the studios could really raise prices by four cents per DVD, after all.</blockquote>

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