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March 08, 2004
Viral Superdistribution
This is a big idea.
On NPR Sunday's "On The Media" show they reported a distributor in Mexico which targets bootlegger's networks and co-opts them. There's some impurities in this method because it uses the Federales to help the business target these resellers, but the idea is perfect. Manufacturers can profit from a distribution model that uses the very same guys who peddle bootlegs on the streets. Four bucks per DVD? Yep. They do it, and the quality is better (obviously) than those taken by handicam in theatres.
This is the kind of business I could really go for myself.
Posted by mbowen at March 8, 2004 01:54 PM
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Comments
Interesting piece. BTW, you can listen or read it here: http://www.wnyc.org/onthemedia/
There are legitimate businesses that sell stuff to flea markets and street vendors here -- stuff that is marked way, way down from suggested retail. Just goes to demonstrate what kinds of profits are being made (or what kinds of costs are being spread over multilevel distribution channels.)
As the program points out, Mexico is a 100 million person market with 80% poor to very poor. If you can supply that market with cheap, legit goods, you have a better selling proposition than the bootlegger. Legit manufactureres should always be able to beat the bootlegger's price -- so the real question comes down to how fast do you want to see those cheap copies back here?
Posted by: Ward Bell at March 9, 2004 12:38 PM
I think working class America would really like to hear about Hollywood people out of a job for a change.
Posted by: cobb at March 9, 2004 01:03 PM