PSP UMD movie sales falter

[Sis]

Some interesting information in this article.

http://www.variety.com/article/VR1117938320?categoryid=18&cs=1&s=h&p=0

With sales falling below expectations, Sony Pictures Home Entertainment, Paramount Home Entertainment and Warner Home Video are cutting back on movie releases for the PSP.

Top PSP movie performers generally sell more than 100,000 units, though the average release posts sales closer to 40,000-50,000 units.

But most interesting:

In a bid to boost the format, execs from SPHE and sister unit Sony Computer Electronics America, which sells the PSP, are touting a new adapter that would allow a user to watch a PSP pic on a TV.

The adapter is an interesting move. UMD movies are, as far as I know, recorded 720X480, the same as DVD so you should get close, if not exact, DVD quality on your TV. As well, the talk of packaging Blu-ray discs with UMDs could help drive sales.

.Sis

 

[Shifty Geezer]

The adapter is an interesting move. UMD movies are, as far as I know, recorded 720X480, the same as DVD so you should get close, if not exact, DVD quality on your TV. As well, the talk of packaging Blu-ray discs with UMDs could help drive sales.

The quality difference between 9 GB and 1.5 GB should be pronounved, though using h.264 PSP's quality difference won't be as bad as it could.

 

[Sis]

The quality difference between 9 GB and 1.5 GB should be pronounved, though using h.264 PSP's quality difference won't be as bad as it could.

That's my take on it, as well. You probably wouldn't want to use the adapter on a monitor that would highlight compression artifacts, but on a standard definition set it may look indistinguishable.

 

[London Geezer]

... handheld forum maybe...?

 

[Sis]

... handheld forum maybe...?

I thought there was only one forum at this site.

In all seriousness, I thought the discussion impacted consoles the same way Blu-ray movies prices impact PS3. But of course the mods can move it if everyone disagrees...

 

[London Geezer]

On the small PSP screen, UMD movies look alright. On a big TV, they're useless. I mean i've already been nagging about how crappy DVD are starting to look, having seen HD material... UMD movies on a big screen would be painful to watch.

 

[Bobbler]

I would think a 1.5-2mbit h.264 stream would be comparable to a ~6-7 mbit Mpeg2 stream. Not sure though... either way those companies seem to be completely missing the heart of the problem: the price.

Make them 14.99 or less (14.99 for new 'expensive' releases, and <9.99 for the average stuff)... they'd no doubt sell pretty well then.

Such a waste of a nearly fresh and untapped market (UMD sales aren't really overlapping much with other markets... it's essentially a new one), all because movie studios don't seem to want to sacrifice possible DVD sales? No surprise UMDs aren't selling so hot.

Add in the fact that they are releasing movies like Barbershop for UMD... who the hell is the target market for that on PSP? I'm pretty sure an almost exclusively 15-25 male market isn't going to be wanting to purchase that. It's stupid business decisions that are hurting the sales... I doubt it's has much to do with a market that is completely uninterested in the possibilities.

 

[cthellis42]

I think they may also be cutting back on some UMD production in preparation for their DVD/UMD bundles, which would steal some of the individual UMD sales.

I'm glad to see them finally getting around to producing a TV-out for the unit, though that capability should have been included from the get-go. (Along with a more enticing price point to give UMD a good establishing shove forward.) It should hopefully look pretty comparable on an SDTV, but I guess we'll have to find out. (And hopefully they'll take advantage of it in other ways, too, such as letting the browser take advantage of added resolution.)

Now all they have to do is let you play games through that thing AND plug a USB Dual Shock 2 into it, and they'll really have something!

 

[Shifty Geezer]

either way those companies seem to be completely missing the heart of the problem: the price.

It's AMAZING how the idea of cutting price goes totally over these companies heads. They just don't see the value of a proprietary format the same way as the public does; just because it's the same film, doesn't mean it justifies the same price on UMD as DVD.

 

[Sis]

It's AMAZING how the idea of cutting price goes totally over these companies heads. They just don't see the value of a proprietary format the same way as the public does; just because it's the same film, doesn't mean it justifies the same price on UMD as DVD.

I completely agree with this point. If UMDs were priced lower than DVDs--say around US$10--I would problaby have a much larger collection than I do today. But I really struggle justifying paying an equivalent price, and sometimes higher, than the UMD movie's DVD counterpart.

It could be, too, that the initial success of the UMD format caught Sony off guard, in which case their licensing may have been structured for a more niche format.

 

[Bobbler]

Guess us brown people don't have enough money to buy a psp...and I happen to like Barbershop thank you very much (probably because it was filmed where I grew up and I can relate to the shop). Also considering the market for hip-hop is white suburban youth, I would say the target market is the same one that would buy a psp.

I guess I wasn't thinking of the right movie -- I thought barbershop was some comedy targetted at women. No offense intended.

Regardless, there are lots of movies on PSP at the moment that have no real market in the 15-25male market (be it brown or white or polka-dot or striped!), I'm sure you can agree with that after looking at the release lists.

 

[patsu]

It's AMAZING how the idea of cutting price goes totally over these companies heads. They just don't see the value of a proprietary format the same way as the public does; just because it's the same film, doesn't mean it justifies the same price on UMD as DVD.

Cutting price is usually the final draw because it has many implications.

Many retailers calculate their retail price by 50% markup. If the wholesale price is too low, it may not be worthwhile for them to stock (opportunity cost).

There is also the issue of price protection, the older titles were sold to the distributors and retailers at a higher wholesale price, when you lower the price, some of the bigger retailers will b*tch about it and want price protection. This mean that Sony has to cough out $$$ to pay for the difference in price for old and unsold UMDs on the retailers' shelves. This price protection money has to come out from somewhere this fiscal quarter (The titles may be sold to distis last quarter).

It would be easier to go direct (so no channel issues) but UMD probably will die due to insufficient reach. So their decision to hide/bundle UMD with DVD seems like the best move.

They would want to somehow keep UMD alive because it has lockin value. I will probably buy the Advent Children UMD + DVD bundle... or even Shadow of Colossus UMD and DVD sound track.

 

[cthellis42]

Why beat someone at a game on the PSP, when you can Serve them automatically?

 

[patsu]

Discount/promotion offered by individual retailers are usually ok. They paid for the goods and they have to clear the inventory at a lower profit if they don't "move". They may not order as many or at all next round.

Sometimes videos are used as loss leaders too to draw the crowd in. This may cause some issues with the publishers because it cheapens their brand/product (People will wait for discount if it happens too often).

However if Sony drop the wholesale price of UMD, then it is a different matter altogether. See my previous post.

 

[overclocked]

Lower price combined with a bonus UMD, i really think its as easy as that. For some movies all you want is the extra material or thats why you buy it aleast.

 

[NANOTEC]

either way those companies seem to be completely missing the heart of the problem: the price.

Catch 22..studios probably make more money on DVDs overall compared to UMD anyway. Install base of PSP doesn't justify lowering the price. Look at DVD and notice how the price is still the same for new releases even though there are hundreds of millions of DVD players out there.

Anyway why bother buying more addons just to watch UMD on a tv? Just stick with DVD and convert them and store them on a flash memory stick. Doesn't make sense to buy UMDs when you can't play them on your DVD player that can output using component.

 

[DigitalSoul]

I thought barbershop was some comedy targetted at women. No offense intended.

Barbershop? with Ice Cube? Wasn't a movie aimed specifically at a female audience. I'll assume you havent seen the movie yet or been to a real barbershop

Unless you are talking about The Beauty Shop which was a spin-off of barbershop......

 

[mckmas8808]

Barbershop? with Ice Cube? Wasn't a movie aimed specifically at a female audience. I'll assume you havent seen the movie yet or been to a real barbershop

Unless you are talking about The Beauty Shop which was a spin-off of barbershop......

Yeah I like Bobbler alot, but he really screwed up bad on that quote. But at least he admitted it.

I just want movie price to be $9.99 - $14.99 and I promise I will buy more UMDs than DVDs.

 

[cthellis42]

Either that, or stronger support (like A/V out) and features structure (unique content only made available--or possible--through use of a PSP). Problem is, as it stands it's mainly just "neat" and "convenient" right now, but the neatness wears off fast in the face of just buying a portable DVD player to play ALL your existing DVD's.

It needs less cost or more interest, and while DVD/UMD bundles are a reasonable option for new purchases, it still won't have people looking to purchase repeat content in any real volume.

Needs a bit more thought and effort.

 

[mckmas8808]

My biggest problem with the PSP is that without the games, its meaningless for me. Also, I would imagine if the rumored new, what some are calling "the real video ipod" happens to be true, then I think we will see umd be relegated to a niche section of stores, compared to what they are now.

Damn man what kind of games do you like? The PSP is proven to have games that many people love. It already has the games.