Just when it seemed like no one cared much about AACS, one of the two major security technologies used in Blu-ray discs and systems, Mark Fritz writes on eMediaLive.com that AACS licensing fees remain a problem for 2nd tier distributors.
“If you are going to press a Blu-ray disc, you have to have an AACS key which requires an upfront fee of about $3,000 as sort of a starting fee, and then pay $1,300 per key, plus a per-disc royalty on top of that. So when you add all that up, for a first-time independent producer to put out his first BD title, it cuts really deep into his potential profit,” says Wain. “This is detrimental to a publisher whose margins are thin. They put numbers into spread sheet and look at the bottom line to see if there’s any black ink and depending on how much black ink they see they may change their minds about releasing that title.”