Home Media Magazine - February 17-23, 2008 - (Page 1)

FEBRUARY 17–23, 2008 >> HIGH-DEF H IG H-DE F MAR KET S HAR E Blu-ray and HD DVD Sales Comparison as of 2/10/08 Week Ended 2/10 Year-to-Date INSIDE I Blu-ray I HD DVD Since Inception 19% 81% 77% 23% 65% 35% Source: Nielsen VideoScan: First Alert data BRINGING DIGITAL ENTERTAINMENT TO YOU Writers End Strike Get a bigger bite for new media; DVD residuals remain the same By Erik Gruenwedel riters Guild of America (WGA) members Feb. 12 unanimously voted to end their 100-day strike against the Alliance of Motion Picture and Television Producers (AMPTP). WGA West and WGA East members will next vote Feb. 25 to ratify the tentative threeyear contract with the AMPTP, which would be effective through May 1, 2011. The agreement gives the WGA long-sought jurisdiction and minimum compensation guarantees for original and repurposed newmedia content, including online and cellular technology, among other provisions. “The strike is over,” said Patric Verrone, president of the WGA West. “Our membership has voted, and writers can go back to work.” He said the strike was necessary to win jurisdiction and establish a foothold in the digital age, including appropriate residuals for writing in new media and on the Internet. HD DVD Format: Going, Going … By Thomas K. Arnold and Erik Gruenwedel he format war has turned into a format death watch. Toshiba is widely expected to pull the plug on its HD DVD format in the coming weeks, reliable industry sources say, after a rash of retail defections that followed Warner Home Video’s stunning announcement in early January that it would support only the rival Blu-ray W >> ELECTRONIC DELIVERY INSIDE T Disc format after May. Officially, no decision has been made, insists Jodi Sally, VP of marketing for Toshiba America Consumer Products. “Based on its technological advancements, we continue to believe HD DVD is the best format for consumers, given the value and consistent quality inherent in our player offerings,” she said. But she hinted that something’s in See HD DVD, Page 28 INSIDE >> Blu Who? Research says consumers are still indifferent. >> Bay Likes Blu Director Michael Bay touts Bluray’s apparent win. PAGE 10 Web Video Up During Strike Online video views hit 10 billion in December, a 34% increase over November. PAGE 12 “Rather than being shut out of the future of content creation and delivery, writers will lead the way as TV migrates to the Internet and platforms for new media are developed,” Verrone said. There is no change to the DVD residual rate, which pays 3% for TV and 3.6% for movies of See WRITERS, Page 28 Best Buy, Netflix Turn Blu I Toshiba assessing market impact caused Toshiba to assess market conditions. “It’s unfortunate to see a valued partner By Erik Gruenwedel such as Best Buy make the decision to push RETAIL Best Buy Co. Inc. and Netflix Inc. are consumers toward Blu-ray,” Sally said. opting for Blu-ray. She said Toshiba is not scaling back HD The Minneapolis-based consumer electron- DVD marketing efforts but instead will anaics retailer said it will begin lyze market conditions. steering consumers toward See BEST BUY, Page 28 Blu-ray Disc with prominently displayed hardware and software displays. Netflix said it will no longer purchase HD DVD titles, and subscribers with HD DVD in their saved queue will be converted to By Chris Tribbey SUPPLIER Warner Bros.’ Blu-ray Disc decistandard DVD by the end of the month. The online DVD rental pioneer said in an e-mail to sion has made things easier for indepensubscribers that it would convert all HD DVD dents. They’re increasingly going Blu. title requests to standard DVD by the end of They’re just not going Blu too fast. the year. “At this point, it looks as if the clear winThe moves mark a major blow to Toshiba, ner of the format war is Blu-ray,” said Badie which has dramatically slashed prices on its HD Ali, EVP of MPI Media Group. “All the DVD players and even ran a Super Bowl ad in recent activity in the industry has illustrated support of the format. Jodi Sally, VP of marketing for Toshiba America Consumer Products, See INDIES, Page 26 said Best Buy and Netflix’s focus on Blu-ray has Image Narrows Q3 Loss, Moving Past Failed Deal By Erik Gruenwedel SUPPLIER Image Entertainment’s attempt to turn the page on its failed purchase by BTP Acquisitions Co. LLC received a boost of sorts when the distributor narrowed its third-quarter loss. For the period ended Dec. 31, Image narrowed its loss 41% to $2 million, from a $3.4 million loss during the same period the year before. Indies Going Blu — Slowly Revenue increased 12.2% to $27.3 million, from $24.3 million, due to strong catalog DVD sales. Top sellers included Deadliest Catch: Season 2 and Mythbusters: Collection 2 (Discovery Channel) and Criterion Collection’s Berlin Alexanderplatz. In a call with investors, Image CFO Jeff Framer said 80% of the loss included costs associated with the merger and termination See IMAGE, Page 26 NEWS Lionsgate is projecting record DVD revenue for 2008 despite a 2.5% industry decline in 2007. PRODUCT Paris Hilton speaks about starring as the “hottie” in The Hottie & The Nottie, due May 6 from Genius Products. RESEARCH Disney topped the charts with Snow Buddies bounding away with sales, with The Game Plan continuing to win at rental. Page 6 Page 8 Page 22

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Contents News Health/Fitness Reviews Pipeline Research Top 20 DVD Sellers Top 20 Rentals and Top 10 Charts Just Announced

Home Media Magazine - February 17-23, 2008

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