NATO: Window between theatrical, DVD shorter
Distributors shrink windows as DVD sales decline
By Marcy Magiera -- Video Business, 4/3/2009
APRIL 3 | The average window between theatrical and DVD release was six days shorter in 2008 than 2007, though overall theatrical windows have stabilized at about four and a half months (see chart), according to the National Assn. of Theatre Owners.
In talking points issued for its ShoWest convention last week, NATO said the strong relationship between box-office gross and DVD revenue is being decoupled as DVD sales decline. The Top 10 movies took in 2.8% more in 2008, while DVD revenue on the Top 10 titles declined 15%, NATO said.
“Distributors, faced with declining DVD revenues, must resist the impulse to trim marketing budgets by shrinking the theatrical release window,” the trade group warned.
Nevertheless, NATO does understand that “we need strong ancillary markets to ensure a strong flow of product to continue to engage movie-goers (like it on DVD, see next installment and the star’s next film in theaters).”
