Home Media Magazine - September 2-8, 2007 - (Page 6) NEWS BRIEFS I XBOX LIVE GETS TECH HELP Microsoft is getting help from Limelight Networks to streamline the Xbox Live performance for Xbox 360. Limelight’s technology and services agreements with Microsoft will “enhance the performance, scalability and reliability of Internet delivery of media content and online service, including video, music, games, software and social media, across Microsoft’s global Internet properties,” according to Limelight. – Chris Tribbey www.homemediamagazine.com Writers and Producers Move to Negotiate Sept. 19 they resume talks on such issues as DVD, download payment By Erik Gruenwedel he contentious labor negotiations between the Writers Guild of America (WGA) and the Alliance of Motion Picture and Television Producers took a step forward last week when both sides agreed to resume talks Sept. 19 — a day after Los Angeles-based WGA, West determines election winners of its officers and board members. The three-year contract between the WGA and producers expires Oct. 31. Initial negotiation efforts reportedly collapsed in acrimony in July. At ground zero of the negotiations are demands for increased residual compensation for DVD releases, as well as compensation and residual benchmarks for the potentially lucrative electronic-sellthrough market. For more than 20 years, WGA members writing for VHS and DVD product received 1.5% of 20% of the producers’ wholesale price for each unit sold. The guild wants to up that to 1.2% of 100% of wholesale — similar to cable rates, the WGA said. The guild’s cause for electronic residuals received a boost last month when the National Labor Relations Board (NLRB) adopted a judge’s ear- Marticorena Replaces Nickerson By Billy Gil arner Home Video has promoted Dorinda Marticorena, VP, kids and sports marketing, to replace Steve Nickerson, SVP, worldwide high definition, who will leave the company at the end of September. Marticorena will report directly to Mark Horak, EVP and GM, worldwide operations and new packaged media, and will lead the company’s mission to promote high-definition media. “I look forward to immediately collaborating with my domestic and international colleagues in this new role and doing all that is necessary to ensure success of the high-definition format in their markets as quickly as possible,” Marticorena said. She and Nickerson will work closely to ensure a smooth transition. Marticorena joined Warner in 2001 as director of marketing, kids entertainment, and has previously served in brand management positions at Nestle USA and General Mills. T I THIRD FORMAT LAUNCHES New Medium Enterprises Aug. 30 formally bowed in Germany its HD VMD (versatile multilayer disc) players and disc. HD VMD players claim 1080i/p resolution and network capability starting at 179 euros ($217). The players will rollout in October in Australia, France, Iceland, India, Poland and Scandinavia bundled with five free HD VMD titles. – Erik Gruenwedel lier ruling in its favor regarding a dispute with NBC/Universal Television. NBC/Universal last year filed an unfair labor claim against the WGA alleging it unlawfully pressured writers of NBC programs not to script webisodes of original material for the Internet. NBC at the time said it would produce webisodes based on its prime-time shows and asked WGA members to work outside of the guild’s collective bargaining agreement. The WGAW encouraged its members not to write webisodes until an agreement could be reached concerning employment terms. In its review of the ruling last week, a three-member panel of the NLRB rejected NBC/Universal’s appeal and affirmed Judge Gregory Meyerson’s Feb. 21 decision. “Whether downloaded, streamed or broadcast, it’s all about quality content — and writers deserve fair compensation for what they create,” said WGAW executive director David Young. W TLA GETS UNEARTHED By Chris Tribbey LA Releasing will distribute properties from Unearthed Films beginning Oct. 30 with the DVD releases of Ichi-1 and Black Sun: The Nanking Massacre. Pinocchio 964 and Rubber’s Love come out Nov. 13, followed by The Hallow Sacrament Nov. 27. Then Dec. 11 come catalog titles Evil Dead Trap 2 and Rock & Rule, and the new U.K. horror Footsteps. “We plan on releasing two catalog titles and one new release each month,” said Un- I NBC UNI, NEWS CORP. VENTURE GETS NAME: HULU The secretive NBC Universal and News Corp. joint Internet video distribution Web site aimed at usurping YouTube’s video-sharing market share has formally been christened Hulu. The joint venture, which will feature commercial and user-generated content, was announced in March. Beta tests are slated to commence in October. – Erik Gruenwedel T earthed president Stephen Biro. “We have had e-mails from so many unhappy fans that they haven’t been able to find any of our new releases over the last year. By the end of 2008, we should have released our entire catalog, in addition to a new title each month.” “Their talent for acquiring new, cutting edge product and their amazing catalog are a perfect addition to our diverse lineup,” said TLA’s Richard Ross. P E O P LE I NG REORGANIZES The National Geographic Society has reorganized its communications division. Ellen Stanley, a former director of communications, has been promoted to VP, communications, ventures. She will lead media relations for National Geographic Ventures, which includes National Geographic Home Entertainment. Mimi Koumanelis, also a former communications director, has been made VP, communications, mission programs. She will oversee media relations for National Geographic giant-screen films and National Geographic Expeditions. I MUSIC LICENSED TO YOUTUBE IN BRITAIN YouTube took a step toward copyright compliance last week when it signed a licensing deal with a British music royalty organization. The MCPS-PRS Alliance, which reportedly represents 50,000 composers, songwriters and publishers, licensed 10 million music tracks to the British edition of YouTube used primarily as background to third-party videos. – Erik Gruenwedel Gallery Buys Time — Again Financially strapped chain gets a third payment extension from its lenders By Erik Gruenwedel inancially troubled Movie Gallery last week said it has extended for a third time — until Sept. 30 — its forbearance agreement with senior lenders. The previous extension to Aug. 28 prolonged an earlier Aug. 14 extended deadline. The Dothan, Ala.-based No. 2 domestic video rental chain earlier this month warned it had incurred significant losses in the second quarter (ended July 1), raising doubts it could meet its debt requirements and continue operations. The company’s financial disclosure made it likely it won’t meet those obligations, and analysts warned creditors could begin foreclosure proceedings. Gallery lost $325 million in the second quarter, compared to $25 million during the same period last year, according to a filing with the Securities and Exchange Commission. Revenue I REPORT: DUAL FORMAT PLAYER NO ANSWER Research firm In-Stat said a universal combo player would not be a “sustainable solution” to the high-def impasse, with the price higher than the price to purchase separate format players. The report also found that despite a 1.6 million drop in sales of standard DVD players from 2005 to 2006, sales of DVD recorders grew 2 million units during the same time period, from 14 million to 16 million. DVD player sales topped out in Japan in 2003 and in 2005 in the United States and Europe. – Erik Gruenwedel fell 6% to $561 million, from $601 mil- ees,” Malugen said in a statement. lion last year. Independent analyst Dennis Gallery, which operates more than McAlpine said Gallery has shrewd4,500 stores, has struggled since it out- ly intertwined its future existence with its lenders’ money. He said the banks don’t want Gallery to declare «WE ARE PLEASED TO HAVE bankruptcy, thereby diminishing THE CONTINUED the value of their loans. COOPERATION OF OUR McAlpine said lenders will continue LENDERSAS WELL AS THE working with Gallery to restructure the ONGOING SUPPORT OF OUR debt to a more manageable amount VALUED EMPLOYEES.» while at the same time eliminating all JOE MALUGEN extraneous costs. bid No. 1 Blockbuster Inc. in 2005, pay“[Gallery has] learned one of the great ing $1.1 billion to acquire then No. 2 lessons of life: If you are going to have Hollywood Entertainment Corp. financial troubles, make sure the bank Chairman and CEO Joe Malugen said hurts as much as you do,” McAlpine the additional extension allowed the said. rental company to continue restructurMichael Pachter, media analyst with ing, which includes store closures, lay- Wedbush Morgan Securities in Los Anoffs and other downsizing measures. geles, countered that the ongoing ex“We are pleased to have the continued tensions simply delay the inevitable cooperation of our lenders as well as the insolvency. ongoing support of our valued employ“It is really annoying,” he said. I STARZ APPOINTS TWO Starz Entertainment LLC has appointed Peter Demas as executive director, key initiatives. He will direct linear, on-demand, online and other platforms, focusing on brand-and-channel alignment. Rachel Falleroni was appointed executive director, program and promotion planning and scheduling. I WARNER UPS TAKAC Warner Home Video has promoted Mike Takac to SVP, sales. He will direct Warner’s domestic field group and will continue to oversee sales integration, carried over from his previous post as SVP, sales integration. – Billy Gil Home Media Magazine September 2–8, 2007 http://www.homemediamagazine.com
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