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SEATTLE, WASHINGTON (July 22, 2005) AMVC.com, an amateur video production and distribution company, today announced that it has seen an increase in VHS and DVD sales as a result of substantially lowering prices. Co-owner Allen McNulty stated, I had a theory a couple of years ago that streaming videos would overtake VHS/DVD sales. Of course today we can see that’s a no-brainer now that we have the advantage of hindsight but I wanted to test the theory further by lowering the prices on all of the films we own and asking all of our producers to voluntarily do the same. Some of the producers were not interested, but we now have a one-month statistic showing that they may want to rethink their pricing strategy. We more than doubled our revenue on our own films in just one month. Several producers experienced a substantial increase in sales, with one producer who had sold zero films in May and ended up selling 25 films in June as a result of the price drop.
I realize that one month does not a statistical analysis make, McNulty adds, but I was certainly impressed and we continue to monitor how sales have changed. If it keeps up, we’re probably going to reeavaluate our site’s pricing policy. I mean, this is business and business is sales and sales are all about customer satisfaction and loyalty. The price drop certainly has covered all of these in our first test run, so it only makes sense to run with it.