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Originally Posted by tony404
Far-L are you going to tell him like you told me there is no money in the video side of the business. Everytime I quote that I cant stop laughing. lol
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I didn't say there is no money. Here is what I said and I would say the same thing to anyone:
1. Distributors are very slow to pay - 90 to 120 days recievables is not uncommon.
2. There is such a glut in the market that most companies do well under 1000 pieces during a new release.
3. Margins are slim since there is a glut of inventory and everyone tries to "whore" out their product.
4. There is no "scantron" or similar third party system for tracking sales so you have to trust whatever a distributor tells you that they are moving out the door. Inevitably - every producer thinks his title should be selling 1,000,000 copies and gets disappointed when he is not.
5. You have to have a tight rein on your niche or you get lost in the sea of product... this is where Ray Guhn excels btw...
6. Any new title requires a pretty steep promotional budget to establish it in that side of the market which is why there are so many fly by night video companies.
Tony404 - am I missing anything?