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Forums - Sales - Does Sony get royalties from each BD sold?

Panasonic receives more money from Blu-ray than any other company. Panasonic owns more Blu-ray patents than any other company, with Sony being a close 2nd. Funny thing is, even Microsoft receives money from Blu-ray disc sales since a lot of discs use their VC-1 codec.



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DVD patents should start to expire any year now, which should make it even cheaper.



Yet, today, America's leaders are reenacting every folly that brought these great powers [Russia, Germany, and Japan] to ruin -- from arrogance and hubris, to assertions of global hegemony, to imperial overstretch, to trumpeting new 'crusades,' to handing out war guarantees to regions and countries where Americans have never fought before. We are piling up the kind of commitments that produced the greatest disasters of the twentieth century.
 — Pat Buchanan – A Republic, Not an Empire

tuoyo said:
Many people on this site (actually I mean Sony fanboys) have gone on and on about how Blu Ray in PS3 was the right decision and that in the end the royalties would make the losses on the PS3 hardware worth it.

Of course Blu-ray was the right decision for Sony. Don't build a fanboy strawman argument if you don't see the reason for it. Sony controls two studios which have massive archives of movies, ready to go to Blu-ray discs. There is your money, not in the royalties. Sony knew that right from the start and now you do, too.

 



drkohler said:
tuoyo said:
Many people on this site (actually I mean Sony fanboys) have gone on and on about how Blu Ray in PS3 was the right decision and that in the end the royalties would make the losses on the PS3 hardware worth it.

Of course Blu-ray was the right decision for Sony. Don't build a fanboy strawman argument if you don't see the reason for it. Sony controls two studios which have massive archives of movies, ready to go to Blu-ray discs. There is your money, not in the royalties. Sony knew that right from the start and now you do, too.

 

 

 So? Almost no one is going to rebuy DVD movies they already own on blu-ray. At best instead of buying a DVD they'll buy the blu-ray version instead. So unless your name is Sony, there isn't a lot on insentive to push blu-ray movies over DVD.



Yet, today, America's leaders are reenacting every folly that brought these great powers [Russia, Germany, and Japan] to ruin -- from arrogance and hubris, to assertions of global hegemony, to imperial overstretch, to trumpeting new 'crusades,' to handing out war guarantees to regions and countries where Americans have never fought before. We are piling up the kind of commitments that produced the greatest disasters of the twentieth century.
 — Pat Buchanan – A Republic, Not an Empire

Tyrannical said:
drkohler said:
tuoyo said:
Many people on this site (actually I mean Sony fanboys) have gone on and on about how Blu Ray in PS3 was the right decision and that in the end the royalties would make the losses on the PS3 hardware worth it.

Of course Blu-ray was the right decision for Sony. Don't build a fanboy strawman argument if you don't see the reason for it. Sony controls two studios which have massive archives of movies, ready to go to Blu-ray discs. There is your money, not in the royalties. Sony knew that right from the start and now you do, too.

 

 So? Almost no one is going to rebuy DVD movies they already own on blu-ray. At best instead of buying a DVD they'll buy the blu-ray version instead. So unless your name is Sony, there isn't a lot on insentive to push blu-ray movies over DVD.

"I have it on VHS I'm certainly not going to buy these expensive new CDs they call DVD.." - Been there, done that....

 



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DVD had a lot of advantages over VHS, it did not wear out, no rewinding, interactive menus, better picture and sound, bonus features.

Blu-ray looks a bit better then DVD.



Yet, today, America's leaders are reenacting every folly that brought these great powers [Russia, Germany, and Japan] to ruin -- from arrogance and hubris, to assertions of global hegemony, to imperial overstretch, to trumpeting new 'crusades,' to handing out war guarantees to regions and countries where Americans have never fought before. We are piling up the kind of commitments that produced the greatest disasters of the twentieth century.
 — Pat Buchanan – A Republic, Not an Empire

"Blu-ray looks a bit better then DVD"

A bit better? Way better if the transfers are done right. Uncompressed DTS MA/True HD sound blows regular DTS and Dolby out of the water



Zuhyc said:

So, we all know Sony put the Blu-ray drive in the PS3 to push the format. If not for that, the PS3 would've had a higher marketschare, SCE wouldn't be in such a bad position. But, without this, HD DVD would have probably won (HD-DVD was winning untill the PS3 was released).

Now, quite some people are saying the profits from BD movies will all be worth it. Which made me wonder, how does Sony make money off BD Sales? Royalties? If so, all of the Bly-ray Association would have to get royalties, something quite expensive.

Yes and no.

They do when they collcet the royalties, but they don't always to push the format more to get more movies released on Blu-ray.

Also considering the low royalty numbers (somewhere around a penny a disc probably...) it depends if you want to count less then a cent per disc when talking about getting a royalty for each disc.

they get about the biggest percentage at somewhere less then 30% of the IP.

http://news.cnet.com/8301-10784_3-9874317-7.html

So for every Blu-ray they probably make less then half a penny a disc... probably more like a third.  So it depends if you want to look at it that way.... or that they make 1 penny every 3rd or 4th blu-ray disc.

So every Million blu-rays sold probably nets Sony something like.... $2,500.

Hence the need for it to become mainstream to be successful.

It's not as big a market as people think vs Videogames.

The blu-ray fee's aren't likely anywhere near what the DVD fees were... as the companies were pissed about the DVD fees.



i find it funny the way some people talk here. like sony shouldnt have done this and it was the wrong decision to do this! blah blah. its like your working for major company or something. you think you know more than sony? one of the biggest companys in the world? people need to stop talking shit here.



tuoyo said:
Many people on this site (actually I mean Sony fanboys) have gone on and on about how Blu Ray in PS3 was the right decision and that in the end the royalties would make the losses on the PS3 hardware worth it.

I find that to be a wholly unrealistic view. With so many members of the Blu Ray association I don't see how Sony could make $4bn from royalties,etc to make back the losses plus $2 or $3bn on top to result in this blu ray in PS3 having been a profitable venture for Sony and the right decision.

If Sony can make about $7bn from Blu Ray then Toshiba must be swimming from some serious money because I am pretty certain they make much much more royalties on DVD than Sony makes on Blu Ray and I doubt Blu Ray will ever be as popular as DVD has been.

 

 I don't think anyone here claimed it would just be royalties that made it up in the end. Sony had a lot more to gain with blu-ray winning the format wars than just royalties. You are soooo shortsighted