Monday, May 12, 2008

Re: "Quiapo's Illegal DVD Trade Is Dying"

Here's a reply on "Quiapo's Illegal DVD Trade Is Dying" posted at

Re: "Quiapo's Illegal DVD Trade Is Dying"

Post Reference:

Hi Guys,

I think it's more like the Quiapo DVD market is changing. The buyer profile is now more C and D whereas before you had B and even A market crowds.

What has changed? The main factor is internet downloads. PLDT and Globe reports a 60% increase in their broadband market in 2007 and this market is expected to grow at least 35% per annum up to 2010. People that used to buy a few pDVDs a week (the bulk of the AB market) are now downloading them instead of going to Quiapo or, say, Greenhills. Additionally, the availability of original DVDs at P150 to P199 also contributed to the decline of pDVD sales. Finally, there is a reactionary market effect wherein sellers are pushing more inferior pDVD stocks because the market demanding clear quality copies have diminished greatly.

In other words the opportunity cost of acquiring pDVDs have gone up since the marginal cost of substitutes have gone down.

Will the pDVD market die out? Not yet! The C & D markets are still around. Buying and watching pDVDs are still cheaper than going to the movies for them. However, since they have lower purchasing power, the market has effectively shrunk and the good old days are long gone for our friends from Marawi.

What can we expect? Market consolidation and perhaps natural monopolies arising from the retail side of the business. Additionally, pDVD quality will likely continue to deteriorate.

Yes, I am idle today.

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