Cost of production?

[neppie]

I've been catching up on the latest in this saga but have been unable to determine one thing: was money taken from preorders enough to cover production of the discs? Or is AU fronting their own money?

If the later, and they have intentions of following through but are having trouble pulling it off financially, I can find sympathy. But if they took the money was taken (in some cases too much) and misallocated, then there's no excuse. Which is it?

[Natasha (candygirl)]

There's really no excuse either way.

[brainysmurf]

AU is paying $40 a set to BMG for the DVDs. They agreed to order 5000 sets, so that's $200000. There were over 3,000 people that pre-ordered, and thus were charged the full amount in May. That's $300000 in revenue that they collected. It appears that they at one time had more than adequate resources to pay for everything.