Buy a PS3, get 15 free Blu-ray movies

hermeslyre

VIP Member
@ Walmart lol, on the 24th. Apparently an employee of wal-mart has leaked this information to the Blu-ray forums. Relevant link,

http://forum.blu-ray.com/showthread.php?t=23991

The news has been posted on Slickdeals, fatwallet, wiredDeals, all the major "best-deals" sites, It looks promising. If anyone has been waiting to get a PS3, here's your chance!
 
k just a rough estimate for the average price of a bluray movie is 23 dollars...
23 x 15 = 345. how could they afford to give out 345 dollars worth of free movies? sounds fishy to me
 
welll.. the retail price of a blu-ray is maybe $23, bet they dont cost them that much. sides that, I think the actual profit they excpect to come from people buying games and movies for the ps3 after then. (its like printers i think.. they also go almost for nothing, but the manufacurers make enough profit with the cardridges)
 
I think it cost companies around $2 to make, package and ship movies

A lot more people are going to buy a PS3 because of this deal, I would
 
keep in mind that walmart isn't making the discs at the store :P


short explanation:
in the end, walmart only makes 3% profit from the stuff they sale
assuming that hold true for everything they sell, then they are only making $0.69 from that $23 blu ray disc.
but it doesn't. some stuff has a greater profit percentage, some stuff has less. 3% is just the average profit.


long explanation: (i was bored :P )

there are plenty of other costs to factor in.
besides the licensing/royalty fees that have to be paid, theres also transport of those discs from the factories to the manufacturers warehouses, then to distribution centers, then to the walmart distribution centers, then to the the stores. with each stop adding a few dollars to the cost.

so the cost breaks down to paying for all the various markups, transport, and storage of those discs. in the end, i wouldn't be surprised if each walmart store only made a few dollars per disc sold, before store level expenses are even taken into account.

and...as for those store level expenses...
between 01/31/2006 and 01/31/2007, walmart:
made 348,650,000,000 in gross sales.
lost 264,152,000,000 to the cost of the product.
leaving only 80,840,000,000 in gross profits from sales
they then paid 65,530,000,000 in operating expenses (employees, stores, etc)
leaving them with 18,968,000,000 before taxes.
they then had to pay 6,365,000,000 in income tax on that.
plus then a few other smaller charges of less then 1bil

in the end, the 7131 stores worldwide made 11,284,000,000 in net profits in the year between 01/31/2006 and 01/31/2007.
only 3% of the money they made from sales.

and most of that remaining 11bil is owned by all the people who have stock in the company.

references/resources for the above:
financial statement: http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?symbol=wmt
number of stores: http://investor.walmartstores.com/phoenix.zhtml?c=112761&p=irol-irhome


comparitivly, microsoft only made 51 billion, and in the end after all expenses, had 14 billion.
 
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I believe that with a new Blu-Ray drive you get 5 movies. So they're just upping the ante a bit. And as someone else pointed out, you just need to buy about 15 more to offset the loss, and then anything after that is profit. So, in the long run, not all that bad of a move...
 
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