Film-Tech Forum ARCHIVE: Future Digital Equipment Prices

This is topic Future Digital Equipment Prices in forum Digital Cinema Forum at Film-Tech Forum ARCHIVE.

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Posted by Mike Frese (Member # 4361) on 01-06-2012, 09:19 PM:

Steve Guttag said this in the R.I.P. thread:

"This stuff is EXPENSIVE and the current fire-sale prices on DCinema equipment will fade away after 2012 when the sales plummet. Those that don't realize how cheap DCinema equipment is in the video industry should check out what "equivalent" A/V projectors sell for (compare resolution, and brightness). Dealers are currently forced into new lows in pricing due to the high volume (a missed sale could mean missing dozens of systems, not just one complex). This creates instability in that market place too. A company must charge enough to remain stable. Those that charge too little generally fold up once the boom is over because their business model was based on high-volume."

Seems like the school of thought I and others have come to is that prices are high because 90% of the equipment is being paid for by a 3rd party (studios). Many areas seem to have high prices and higher cost increases where there is a 3rd party. Medical and higher education for example. Therefore prices will come down.

So what do you think? Will prices go up with lower volume?

Posted by Monte L Fullmer (Member # 2797) on 01-06-2012, 09:25 PM:

Hard to say .. depends on current inventories, or made to orders.

Right now, the economy still isn't the greatest, monies tight, and other financial issues not the best. Factors that plays into all of this.

Posted by Mark Gulbrandsen (Member # 72) on 01-07-2012, 05:58 PM:

I honestly don't expect to see sales dropping off all that much just because the VPF sign up is expiring. Less than half my digital customers are on any sort of a VPF program. Those theater owners out there where ever that either did not qualify or were dumb enough to not keep abreast of the current situation will still have to purchase this equipment. In addition there will be new add ons and updates-upgrades that will also be somewhat pricy to do but none the less will have to be done. From what I've seen of the present sales I wouldn't expect it to drop off more than about 20% once VPF sign ups are done. And who knows, that too may be extended at some point for a while. However, once the market is saturated I don't see much of anything happenning except the new builds, even service will be curtailed from what it once was because so far the current digital equipment has prooven to be more reliable than most existing film equipment. Lasers might replace lamps and there goes those sales. Being a NOC isn't any sort of guarantee either unless you are monitoring thousands of screens and indeed... the need for that service is also finite.

Mark

Posted by Bill Enos (Member # 440) on 01-10-2012, 07:05 PM:

At some point market saturation will take place. At that time the only sales will be replacements for older and or dying equipment, will manufacturers be desperate enough for any sale to cut a price or will decreased production lead to much higher prices?

Posted by Louis Bornwasser (Member # 3063) on 01-10-2012, 09:17 PM:

YES