Originally Posted by
S.Lemon
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.
That is true, but I seriously doubt that DVDs are used this way. Typically, the really inexpensive versions of stuff they want to make money on are used as loss leaders. For example, best buy will advertise a digital camera for $40 (at or near cost) but it's a janky piece of crap. When you get to the store they try and sell you a $80 one on the basis that the $40 sucks and you'd be much better off spending a little more on a decent camera.