Positive world view
By Marcy Magiera -- Video Business, 4/20/2007
APRIL 20 | While first-quarter sell-through revenue in the U.S. dipped almost 8% on a weak release slate, business internationally was up a healthy 6.1%, according to research concern Media Control GfK.
GfK provides services similar to Nielsen’s data collection in the U.S. but in the international market, where it gathers point-of-sale information from retailers in countries including the U.K., France, Germany, Belgium, Netherlands, Spain, Italy, Portugal, Switzerland, Sweden, Japan, New Zealand, Australia and Hungary.
The increase in revenue internationally can mostly be attributed to foreign currency gain on the dollar, says Amy Heller, GfK’s U.S. president. Excluding exchange, the overall international market was relatively flat—which still beats the decline in the U.S.
Individual countries did grow, excluding the exchange rate, with revenue in markets including Germany, Australia, New Zealand, Portugal, Sweden and Hungary up between 3% and 20%.
Like the U.S. a year or two ago, Australia, which saw the 20% growth, is experiencing significant growth in TV on DVD. The second season of Grey’s Anatomy was the top title Down Under during Q1.
While international revenue trends have also been affected by declining DVD prices, which are an even bigger issue in some international markets—particularly the U.K.—than they are in the U.S., total international unit sales for Q1 were also up 6.1%, according to GfK.
Like in the U.S., release schedules played a role. But while releases were weak at home, some of our big fourth-quarter releases made their way into overseas markets in Q1, boosting business around the world.
For instance, Pirates of the Caribbean: Dead Man’s Chest was released this February in France, where it was the No. 1 title in revenue, according to GfK. Over the Hedge and Superman Returns were released there in December, and strong sales carried over into the new year.
Cars hit Germany in January. And The Devil Wears Prada landed in the U.K. in February and Germany in March.
It’s a universal industry truth: Currency exchange and pricing aside, the release schedule is always a major factor.
On the high-definition front, Blu-ray Disc and HD DVD generated about $12 million combined internationally in Q1, according to GfK. Heller reports that Japan was the major factor in a swing toward Blu-ray, which accounted for about two-thirds of sales in the quarter. In Europe, according to GfK, the formats are running virtually neck and neck.
The top title on HD DVD: King Kong, across many territories. On Blu-ray there was more variance: Casino Royale in the U.K. and Germany; X-Men: The Last Stand in Japan; and in France, Ice Age: The Meltdown.
