Home Media Magazine - December 9, 2007 - (Page 8) NEWS PEOPLE I SONY PICTURES MAKES HIRE, PROMOTES TWO Sony Pictures Home Entertainment (SPHE) has hired Jason Spivak as SVP, strategic development; and upped Noam Meppen to VP, retail promotions and merchandising; and Jamie Glinsky to ex- Jamie Glinsky ecutive director, strategic development. Spivak, who previously held development roles at SPHE, MGM and most recently TNR Enter- Jason Spivak tainment, will report to Marshall Forster, senior EVP, North America. Meppen, in the newly created role of VP, retail promotions Noam Meppen and merchandising, also will report to Foster. Glinsky will continue to help develop the division’s manufacturing-on-demand business and will report to Spivak. – Billy Gil www.homemediamagazine.com Lionsgate New Home for ‘Bratz’ Productions based on the doll franchise will have sole residence at the minimajor By Thomas K. Arnold SUPPLIER Barbie may have left the building, but a bunch of “Bratz” are taking her place. Lionsgate will be the sole U.S. distributor for the entire “Bratz” DVD catalog, including five titles previously distributed in the domestic market by 20th Century Fox Home Entertainment. Lionsgate also will distribute two new “Bratz” animated DVD titles next year, beginning in February with Bratz Kidz Fairy Tales. They’ll be distributed in the United States, Canada and the United Kingdom. The exclusive deal comes as part of a newly extended agreement between Lionsgate and MGA Entertainment. The two companies initially partnered last year for the distribution of new direct-to-DVD “Bratz” productions as well as Bratz: The Movie, the first live-action film based on the topselling brand of fashion dolls. Bratz opened theatrically in August and grossed $10 million in U.S. theaters. The film arrived on DVD Nov. 27 backed by an essay contest sweepstakes in which Lionsgate is offering four $60,000 scholarships. Lionsgate later this year will release new “Bratz” interactive DVDs based on an agreement with Bratz licensee XLT. The mini-major also has gained North American video-on-demand and electronic sellthrough rights for the “Bratz” catalog, and VOD/EST rights for the United Kingdom and Ireland for two new titles in 2008. “The Bratz brand continues to dominate the North American market, and we believe that there is unlimBratz: The Movie ited growth potential in the U.K., where the brand has been a true phenomenon,” said Anne Parducci, EVP of marketing and family entertainment for Lionsgate. “By presenting all home entertainment products under one roof, including new digital platforms, we are encountering far greater opportunities to increase catalog sales and brand awareness.” Over the past two years, more than 4 million “Bratz” DVDs have been shipped to retailers, in addition to 500,000 CDs. Parducci said that while new “Barbie” productions may have moved over to Universal Studios Home Entertainment, Lionsgate continues to distribute a healthy chunk of catalog “Barbie” product. But in terms of new releases, “Bratz” is now the supplier’s primary product line for girls between the ages of 6 and 10. It’s also a key driver in the lucrative children’s nontheatrical market, where Lionsgate enjoys a consistent fourth-place ranking, behind Walt Disney Studios, Warner and Paramount. “I think that’s quite commendable, because we don’t have a network feeding us programming,” Parducci said. “Everything we have, we have to go out and acquire.” Parducci said that while Lionsgate has its boy bases covered with its Marvel Animated Features, the extended MGA deal gives it a significantly greater role in the young girls market. Iger: DVD Resilient in Changing Times By Erik Gruenwedel SUPPLIER Until the link between the Internet and television becomes more reality than hype, packaged media will continue to reign, despite challenges from streaming and electronic sellthrough, said Disney’s chief executive Bob Iger. As the keynote speaker at the Sanford Bernstein & Co. media conference in New York, Iger said it was too early to determine whether electronic sellthrough and streaming of movies on the Web were shifting consumers away from DVD. “Our instinct is that these people [streaming] would not have bought the DVD,” Iger said. “The computer is a great way to watch a movie, but at I PARAMOUNT APPOINTS PACACHA TO NEW ROLE Paramount Home Entertainment has appointed Marguerite Pacacha to SVP of domestic business affairs and legal affairs for the home entertainment division. She will report directly to Steve Bertram, president of worldwide business operations for Paramount Home Entertainment, and will handle all business and legal issues for Paramount’s domestic home video business. – Chris Tribbey some point bringing the computer and Internet to the TV set is very important to grow that business. When that happens, consumption [of digital movies] will grow.” Iger said with the advent of movie downloads, storage will become an issue for average users to the point that many will find themselves having to erase something for which they paid. “That’s an odd situation for the consumer,” he said. “If you bought the DVD, you wouldn’t want to throw it out.” Iger said retail prices for movie downloads remain margin neutral, which he said meant Disney makes as much profit when it sells Ra- tatouille on iTunes as it does on DVD. The executive defended charging less for new releases electronically than in packaged form. He said consumers will pay for quality and convenience online, but they won’t pay more than traditional retail. “What we are selling through electronic sellthrough is vastly different [in terms of usage] than the physical product, so charging less is the right thing to do,” Iger said. “Those who want to charge the same online as the physical product are making a mistake and will not help grow the market.” Iger said television programming See IGER, Page 36 I ENTERTAINMENT RIGHTS NAMES HEAD OF SALES Entertainment Rights has tapped Adam Selly for the newly created position of head of sales, excluding the United States, Canada and Japan. He will handle generating and maximizing revenue across the group’s television and home entertainment businesses and will report to the company’s director of international, Chloe van den Berg. Selly is a veteran of HIT Entertainment as well as Dynamite Entertainment, a kidvid production house and distributor he founded. Entertainment Rights houses more than 3,500 hours of content, including subsidiaries Classic Media and Big Idea. – Billy Gil BRIEFS I HIT AND PIXFUSION HAVE PERSONALIZED BARNEY DVDS HIT Entertainment and PixFusion, which specializes in personalized video products, have banded together to give fans of Barney a personalized DVD with the big purple dinosaur. In celebration of Barney’s 20th anniversary, PixFusion’s technology will allow a child’s picture to be digitally inserted into a My Party With Barney DVD, which also will include Barney calling the children by their name. The packaging also will include the child’s name, and each 18-minute episode includes full animation with the child’s picture. More details can be found at www.kideo.com. – Chris Tribbey I PIPER JAFFRAY UPGRADES NETFLIX STOCK Piper Jaffray upgraded Netflix’s stock from neutral to buy. The investment bank also raised its price target from $26 to $28, citing Blockbuster Inc.’s change in strategy as an advantage for Netflix, according to StreetInsider.com. Piper Jaffray said checks at Blockbuster stores indicate that Total Access isn’t being pushed to customers anymore and the traffic on Blockbuster.com has slowed down, according to StreetInsider.com. – Angelique Flores The company’s new Disc Box Slider (DBS) package offering for DVDs, CDs and games purportedly produces fewer CO2 emissions than traditional jewel cases, is made from as much as 86% renewable content and weighs only 30 grams. Developed by paper-and-packaging company Stora Enso, the DBS was first used in the United States for The 5 Browns dual-disc CD release. The package opens up from the side by moving a sliding tab from the sleeve, on which the disc rests. – Chris Tribbey I ANALYST LIKES LIONSGATE Wedbush Morgan Securities late last month upgraded shares of Lionsgate just weeks after the Santa Monica, Calif.-based minimajor posted a second- I BOX GOES GREEN North Carolina-based Arvato Digital Services just got a bit greener. quarter loss of $56 million. The Los Angeles-based firm upgraded shares of Lionsgate from “buy” to “strong buy” on the belief the studio’s stock price can reach a target $13 per share and $11.50 per share in the short term. The investment firm said the studio’s record quarterly revenue of more than $343 million and projections of more than $230 million in the current 2008 fiscal year on five pending theatrical releases augers well for the near future. “We think a strong fiscal third quarter and fourth quarter results, accompanied with a solid 2009 guidance, should provide ammunition to motivate some investors,” said analyst William Kidd, in the note. – Erik Gruenwedel Home Media Magazine December 9–15, 2007 http://www.homemediamagazine.com http://StreetInsider.com http://Blockbuster.com http://StreetInsider.com http://StreetInsider.com http://www.kideo.com
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