BETWEEN THE LINES

November 12, 2009 | Link This | Email this | Comments (0)

Remember the saying, “Content is king”? Often used in discussions about the relative importance of content vs. the various ways it is distributed, it has become less popular since the economic recession and changing media consumption patterns have combined to beat the value out of all kinds of quality content. (R.I.P. Gourmet magazine and your daily newspaper.)

What’s becoming more and more clear is that the Consumer is the real ruler, and media companies must find the right combination of content and distribution to please him.

Some ideas that are on the right track include multi-purpose devices, such as Blu-ray players that also allow downloads or streaming to the TV, and multi-purpose software packages, such as those that include DVD, Blu-ray and digital copy.

One format will not replace lost DVD revenue, but rather a mix of ...Read More

October 23, 2009 | Link This | Email this | Comments (0)

Netflix chief Reed Hastings said during the retailer's quarterly conference call yesterday that he thinks there may be economic opportunity for his company in stocking new release DVDs more cheaply by waiting four weeks or so after their general release to get them. In other words, Netflix may be willing to embrace the delayed window that Redbox is fighting tooth-and-nail. As long as the studios make it worth Netflix's while.

There's certainly news in Netflix's possible acceptance of a window.  But the idea that it signals a broad move by studios to delay packaged media rental across the board until after sell-through window--as was reported in some quarters today--is overblown.

Warner has made clear its intention to renegotiate its Netflix deal on terms more favorable to the studio or impose a window on Netflix i...Read More

October 22, 2009 | Link This | Email this | Comments (0)

Research concern SNL Kagan predicts in a new study that packaged media "sell-through revenue will drop 13% to $12.86 billion in 2009 as VOD technologies begin to erode market share."

Through the first three quarters of the year, sell-through is running down about 16%, so if it ended the year off 13%, that would mean an improvement in the fourth quarter. Many industry execs think that the improvement is going to happen.

The SNL Kagan study, "Economics of Motion Pictures," is not so much about home entertainment, however, as the total profit picture for major studio films. The study analyzes all films released on more than 1,000 screens from 2004 to 2008, and finds that films with the largest budgets actually do generally return the biggest profit. 

For ...Read More

October 16, 2009 | Link This | Email this | Comments (1)

Disney classic Snow White and the Seven Dwarfs made its high-def debut as the No. 1 Blu-ray in its first week of release. And for a moment, we thought the Blu-ray was perched atop the Top DVD Sellers chart, too.

Confused? So were we.

As a reminder, Disney made a strategic marketing decision to release Snow White, one of its crown jewels, on Blu-ray a full seven weeks before a new DVD version. Blu-ray streeted Oct. 6. Standard DVD is coming N...Read More

Industries: High-Def, Software, Studios/Suppliers

October 12, 2009 | Link This | Email this | Comments (4)

UPDATE: 10/16-- Redbox president Mitch Lowe stopped by for a meet-and-greet on a trip to LA this week and we asked him straight out if the kiosk company has a deal to buy in bulk from Wal-Mart. His answer was not quite as blunt. He did acknowledge that Redbox has at least tacit agreements to buy product from some large retailers, who "put aside" stock for Redbox. In some instances though, he insisted Redbox shops with the general public. There are thousands of Redbox employees picking Universal product up from various retailers on street date, he said. 
He positioned it as not that big a deal for those employees to add Fox and Warner titles to their orders. In some cases, buying at retail is less costly than buying through distribution, he said, but there are added costs for labor and transportation.



...Read More

Industries: Retail