An example of the impact of very high Blu-Ray royalty on Blu-Ray drive prices

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Deadmeat

Jun 23, 2008 - CDT 8:41 AM

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http://www.blu-ray.com/news/?id=1427

BDC-S02BKZ Drive Prices :

China(No Royalty paid) : $145
Taiwan(Royalty paid ) : $230
=======================
Impact of Royalty on MSRP : $85

Skyhawk

Jun 23, 2008 - CDT 9:53 AM

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Maybe now you can give us a link to the article that says Pioneer can ignore BDA royalties for equipment destined for the Chinese market, because that wasn't it.

In fact, last I heard the BDA was being very careful with Chinese companies out of the concern that they might bypass the licensing fees as some have done with DVD.

Meat dude, I have to remind you that Blu-ray is only a media format. You've got to come to terms with HD DVD losing the format war and end your grieving period soon. Enjoy the HD DVDs you own, and forget about Blu-ray altogether until you're absolutely ready, instead of constantly making crap up. Your mental health is at stake here.

Deadmeat

Jun 23, 2008 - CDT 9:59 AM

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Quote:
Maybe now you can give us a link to the article that says Pioneer can ignore BDA royalties for equipment destined for the Chinese market, because that wasn't it.

Nobody pays any royalty in China because China's complete disrespect for foreign IP.

Quote:
In fact, last I heard the BDA was being very careful with Chinese companies out of the concern that they might bypass the licensing fees as some have done with DVD.

Which keeps the price of Blu-Ray players high.

Deadmeat

Jun 23, 2008 - CDT 1:16 PM

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Let's do some math of Funai Blu-Ray player.

+ Walmart Price : $300
- Walmart Margin(15%) : $45
- Shipping : $10
- Funai Margin(10%) : $25
- Blu-Ray/DVD Royalty : $75
=====================
Manufacturing Cost : $145

Funai had to build its Blu-Ray player for $145 in order to sell it for $300 at Walmart and $350 at Best Buy. Given that Funai buys OPU from Sony and SOC from Matsushita, Funai's cost is already barebone indeed. Funai would have to build its Blu-Ray player for $69 before it could hit $199 MSRP.

Now do you see why it's so difficult to hit $199 retail with a Blu-Ray player no matter who makes it, and why the door is wide open for Sub $199 Super Upconversion DVD players to take over the market.

steveo73

Jun 23, 2008 - CDT 1:25 PM

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Ok so now you argue blu-ray will fail because of high royalities??

Man you are reaching!

Deadmeat

Jun 23, 2008 - CDT 1:45 PM

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Quote:
Ok so now you argue blu-ray will fail because of high royalities??

High royalty + High cost was the reason I opposed Blu-Ray from the beginning.

Skyhawk

Jun 23, 2008 - CDT 2:59 PM

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Quote:
Nobody pays any royalty in China because China's complete disrespect for foreign IP.

I doubt all Chinese companies have complete disrespect for foreign IP. I smell racism.

BTW, Pioneer is s a member of the BDA and not a Chinese company! It's based in Tokyo in fact. Before you were just a liar now you're nothing but a joke.

Deadmeat

Jun 23, 2008 - CDT 3:05 PM

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I doubt all Chinese companies have complete disrespect for foreign IP. I smell racism.

They have no legal obligation to pay royalty for product sold in China, since the patents are never recognized in China. Chinese firms do have a legal obligation to pay royalty on product shipped to foreign markets.