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March 14, 2005

You are on the invidual archive page of Daily linklets March 14th. Click Simon World weblog for the main page.
Daily linklets March 14th

This is a daily collection of links, some with commentary, to news stories and interesting blog posts. It will be updated throughout the day with a new timestamp for the updates.

Scroll down for today's other posts.

  • Why are these Disney executives smiling? They are visiting Hong Kong Disneyland, the city's biggest boondoggle.
  • China isn't impressed by the Dalai Lama's recent efforts at rapprochement.
  • To fight piracy Warner Brothers is selling DVDs cheaply in China. They are selling DVDs such as Harry Potter for 22-28 yuan when the going rate for pirate DVDs is 5 - 8 yuan. Of course this also exposes what a rip-off DVDs and CDs are in the first place.
  • China is preparing to release a genetically modified rice to help boost yields and rural incomes. Don't expect many Chinese farmers to join in anti-GM rallies.
  • China's banking system has seen more than 4,000 officials steal US$50 billion in cash. This exceeds the US$45 billion injected into BoC and CCB to recapitalise them in 2003. It's an extra-ordinary amount of money to take out of a developing economy's banking system. It also highlights why China's banking reform is so urgent.
  • The WaPo reports on two books on China's leaders, one by American investment banker which is being heavily promoted and the other by a CCP member that is banned. The first book is The Man Who Changed China, a biography of Jiang Zemi; the other "Political Struggles in China's Reform Era" is a new look at the era of the late Zhao Ziyang.
  • China is conducting the first human trials of an AIDS vaccine.
  • Following the boom in Chinese textile exports, China is racing to stop the US and the EU re-imposing quotas and another trade distorting limits.
  • The full text of China's newly passed anti-secession law.
  • (14:15) Long-time favourite blog ESWN in undergoing a revamp after suffering from Simon's First Law of Blogging: the more popular the blog, the more it costs the blogger (in both time and money). It is a real shame as ESWN is a superb and unique blog. I only hope he continues to post regularly as promised. If you're not reading ESWN, you should.
  • Hemlock compares and contrasts Tung Che-hwa with Tricky Dicky.
  • (15:42) Harry Hutton: the bear-whispering Alaskan librarian.
  • (16:09) While mostly symbolic, America's planned Advance Democracy bill does little but antagonise countries such as China. The aim of advancing democracy is laudable but this isn't the way to do it. If anything it sets the cause back by giving opposing Governments propaganda opportunities. Talk softly and carry a big stick.
  • How to blog good.
  • Roger Simon isn't impressed by WaPo Managing Editor Philip Bennett's interview in that esteemed journal of record, the People's Daily.
 posted by Simon on 03.14.05 at 04:12 PM in the Daily linklets category.




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Comments:

Regarding your tidbit on WB DVDs in China and the line "Of course this also exposes what a rip-off DVDs and CDs are in the first place." Um, no. This price is only possible because all associated costs are at a "China level". That includes staff salaries, local replication, warehousing and logistics, marketing and merchandising, special arrangements made on royalties, and a business plan that assume operating at a loss for 5 years.

posted by: spike on 03.14.05 at 12:35 PM [permalink]

Fair points but I thought the major cost of such products was the "intellectual capital" i.e. the cost of producing the content. Harry Potter isn't a Chinese boy.

 posted by: Simon on 03.14.05 at 01:03 PM [permalink]

Well, it's certainly one component, but far from the only one. You have the cost of digital mastering of the DVD, preparation of the bonus materials, the box and artwork, dubbing and subtitling, marketing and merchandising and promotion, the entire supply chain of getting the disc from the replicator to the warehouse to the store, assorted overhead (financial accounting, MIS systems, legal, etc.), taxes, royalties to the owner of the DVD copyright, royalties to Dolby labs and some profit too, of course. Probably the biggest chunk of change goes to the retailer, who on average adds a 20-30% mark-up to the wholesale cost. (HMV in HK marks up everything 35% across the board.)

DVD prices probably could come down in places like the US and UK but it is impossible to replicate the kind of pricing you get in China throughout the entire supply chain.

On the other hand - in the U.S., you can generally buy a 2 disc DVD set of a current hot movie for under $20 - a movie that on average cost $100 million to make (the creative element) and a similar amount to market. And you pay almost the exact same price for a single music CD, something that usually costs under $10 million to make and $10 million to market.

Many of us in the home video business also shake our heads in disbelieve at CD pricing.

 posted by: spike on 03.14.05 at 08:17 PM [permalink]

So WB is allowing you the option of paying 5 times more for a DVD than you can get on the street?

What a bargain.

Then again, at least maybe it will work and not have a guy walk in front of the screen like mine showed.

 posted by: Helen on 03.15.05 at 02:22 AM [permalink]




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