Just released films in your living room? Only if you’ve got a spare $20,000

With DVD sales down 20% in the US since last year film studios are constantly on the look out for ways to increase demand for their products. A new product in America would allow customers to be able to bypass the Cinema experience altogether by paying an initial $20,000 plus $500 a film for just released films in their home. Will this work?

For business studies teachers this is a great example of niche marketing with the company targeting only the super rich.

For economics teachers it could be used in a supply and demand lesson to show how substitutes for cinemas could reduce demand or for a lesson on how firms compete.