Home Media Magazine - November 4-10, 2007 - (Page 3)

NOVEMBER 4–10, 2007 >> H I G H-D E F H I G H-D E F MAR KE T S HAR E Blu-ray and HD DVD Sales Comparison as of 10/28/07 Week Ended 10/28 Year-to-Date I Blu-ray I HD DVD Since Inception 45% 55% 64% 36% 60% 40% Source: Nielsen VideoScan First Alert data B R I N G I N G D I G I TA L E N T E R TA I N M E N T TO YO U Blockbuster Loss Widens Chain plans to cut spending and focus on revamping the stores By Erik Gruenwedel Total Access. R E TA I L The bill for Total Access has come In a call with investors, Keyes said the popudue, and Blockbuster Inc. is tightening its belt. lar online rental, in-store return program had The Dallas-based No. 1 video rental chain has come into existence at an unsustainable cost. upped restructuring efforts, including refo“What had been an online model was not recusing on retail sales and ally a digital solution. It was digital delivery, in an aim to more of a competitive rereduce $45 million in oversponse to the demand for head costs following anothby-mail delivery of DVDs,” er disappointing quarter. Keyes said. Blockbuster posted a The CEO credited rival third-quarter (ended Sept. «CLEARLY OUR SPENDING ON Netflix with development of 30) loss of $35 million, THAT ONE CHANNEL (TOTAL the online rental market but compared to a loss of $24.7 recognized that BlockACCESS) WAS million during the same EXCEEDING OUR RETURNS.» buster’s pursuit of by-mail period last year. subscribers was “a bit JIM KEYES, CEO Total revenue declined overzealous.” 5.7% to $1.24 billion, compared to $1.31 billion The company reportedly spent more than last year. $300 million marketing Total Access. The company has shed about 400 employees “Clearly our spending on that one channel since new CEO Jim Keyes took over in July. was exceeding our returns,” he said. Significant to the loss was a $29 million negKeyes said Blockbuster Total Access achieved ative impact to rental gross profit related to the a significant boost in subscribers but at the cost of free in-store exchanges associated with See BLOCKBUSTER, Page 26 Blu-ray Mounts Event Offensive Elaborate parties, sharp rhetoric trumpet format By Thomas K. Arnold he gloves are off. Backers of the highdefinition Blu-ray Disc format staged a two-day offensive in Hollywood last week in which two studio presidents threw vitriolic verbal punches at the competing HD DVD camp in front of a crowd of more than 50 influential print and online journalists. Taking the stage at a Blu-ray launch party in Hollywood Oct. 30 for Cars and Ratatouille, Walt Disney Studios Home Entertainment worldwide president Bob Chapek blasted the rival HD DVD camp for prolonging the format war when he said it is clear Blu-ray Disc is the odds-on favorite. “Blu-ray’s competition’s attempts to sell less than the best will inevitably be trumped by what we stated from the very beginning, that the Blu-ray technology is not a half-step T format that will sell consumers short, but rather, it is a revolutionary technology that will change the way we view movies for the long term,” Chapek said. “And we firmly See BLU-RAY, Page 28 WAL-MART BOWS $99 HD DVD PLAYER By Erik Gruenwedel orget Black Friday, the day after Thanksgiving when retailers entice holiday shoppers with extreme price discounts. Wal-Mart jumpstarted this year’s sale three weeks ahead of time by offering Toshiba’s HD-A2 HD DVD player for $98.87 Nov. 2. The player, which began the year priced at $499, See WAL-MART, Page 26 F INSIDE PAGE 10 >> Blu Grows Up Panasonic unveils a next-gen, interactive Blu-ray player. >> Why Bother? Research says most consumers aren’t considering HD discs. >> Blu Hits New York Disney’s Blu-ray tour stops in Garden City, N.Y. WALGREENS TO BOW Labor Strike Looms Over DVD, Digital Pay DVD-BURNING KIOSKS By Erik Gruenwedel riters are digging in their heels over a piece of the DVD and digital delivery pie. Renewal of last week’s expired contract between members of the Writers Guild of America (WGA) and Alliance of Motion Picture & Television Producers (AMPTP) appears dependent on resolving recurring DVD-compensation issues. Producers want to pay writers residual payments for Web-based work established upon See WRITERS, Page 26 >> E LE C T R O N I C D E LI V E RY W By Erik Gruenwedel R E TA I L Walgreens is planning a major DVD sales offensive designed not to impact a single square inch of lucrative shelf space. The nation’s largest drugstore chain, with more than 6,000 locations, next year plans to unveil kiosks that will allow consumers to burn their favorite Hollywood movies onto special blank discs. The DVD Copy Control Association in September approved for the first time the ability for commercial vendors and consumers to create CSS copy-protected See WALGREENS, Page 26 Digital in 2nd Revolution By Chris Tribbey igital delivery is undergoing a second revolution, according to experts who discussed the topic at Digital Hollywood in Hollywood Oct. 31. Companies are moving more and more toward streaming options for online video, instead of downloads, and TV companies are embracing the online world faster and with D more ease than are movie studios, many agreed. “It used to be you had to be at ABC at 7 or 8 o’ clock to see that show,” said Bradford C. Auerbach, digital entertainment services representative for Hewlett-Packard. “That world has been shattered. The consumer wants what they want, when they want it.” See DIGITAL, Page 24 INSIDE >> Digital Shout Shout! Factory gets a digital arm. >> Hulu Hoop NBC Uni, News Corp. site debuts. PAGE 12 NEWS Wal-Mart and Safeway are the latest landlords to object to Movie Gallery store closures, demanding compensation. PRODUCT Our independent film buying guide highlights the best indies studios have to offer in the coming months. RESEARCH Paramount/DreamWorks’ “robots in disguise” show staying power. Transformers again takes No.1 on the DVD sales and rental charts. Page 8 Page 17 Page 22

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Home Media Magazine - November 4-10, 2007 Contents News In Focus News News TV DVD Indie Film Reviews Pipeline Research Top 20 DVD Sellers Top 20 Rentals and Top 10 Charts Just Announced

Home Media Magazine - November 4-10, 2007

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