Matt Richtel writes in The New York Times:
Red Light’s sales have dropped more than 30 percent in the last two years. To counter the trend, Mr. Joseph says the company plans to start giving film buyers an extra promotional DVD with more scenes from its movies, which typically cost $20. He also plans to improve the packaging of his DVDs.
A similar tactic is planned by Sean Logan, chief of Nectar Entertainment, which has made movies like “Exxxtasy Island.” Business is down 25 percent in the last year, Mr. Logan said, and, because his movies cost $50,000 to $80,000 to make, he cannot afford to compete with some DVD competitors who are dropping their prices as low as a few dollars a film to maintain their volume of sales.
