Originally Posted by
kemmer
You're pulling that out of your ass aren't you? If anything the markup on DVD players is small. The reason movies are cheap (compared to the MASH DVD) is that movie ticket sales make up a huge part of that business. By the time the DVD comes out, the movie has already made most of it's money.
Actually, I'm not. I work at an independent record store so i've heard a lot about the ways in which bigger business can afford to sell things for less. The reality though is that i only used dvd players as an example due to its relation to the argument. It is true though that larger companies often sell smaller products for cost or near cost and in turn write it off as an advertising expense. It works, apparently very well.