Home Media Magazine - December 28, 2008 - (Page 22) NEWS 2008 Ends on a High Note Continued from page 1 www.homemediamagazine.com packaged media’s days were numbered because before too long everyone would be digitally downloading movies, TV shows and other entertainment programming. The abrupt end of the high-def disc format war, which came about in mid-February when Toshiba pulled the plug on its losing HD DVD technology, wasn’t the victory Bluray backers had hoped it would be. Analysts opined that it hardly mattered, due to the onslaught of digital downloading, while a series of missteps on the hardware end — most notably, consumer confusion about the various player profiles and what they could and could not do — hindered adoption. But just when seasoned industry observers were gearing up for another round of “the sky is falling” predictions, there came the thunderous hits that brought our nation’s economy to its knees. First came sky-high gas prices; next, the meltdown in the mortgage industry; and, lastly, the onset of a true recession, complete with bank failures, government bailouts and a protracted period of uncertainty over what’s next. And all of a sudden, home entertainment’s prospects don’t look so bad, given that everything around us is crashing and burning. We’re once again hearing talk about home entertainment’s resiliency in hard times, and the fact that consumer spending on home entertainment is running about 3% behind last year isn’t seen as a disaster of epic proportions, as it might have been in less-challenging times. A minute fractional downturn in the business equates to weathering the storm quite nicely — particularly since digital downloading, the great hope of analysts everywhere, has failed to even remotely pick up the slack. Indeed, packaged media is holding its own. On the sellthrough front, DVD sales may be trending downward, but Blu-ray Disc is rapidly gaining ground, with expectations that software sales could hit $800 million this year, nearly three times what they were in 2007. And on the rental end, subscription services and kiosks are shoring up the business, more than making up for any downturn in brick-and-mortar stores. As Ron Sanders, president of Warner Home Video, said in early December, “Flat is the new up.” And that was about a week before Warner’s The Dark Knight gave packaged media exactly the sort of spark it needed to finish the year on what’s looking more and more like a high note. The Batman sequel sold 13.5 million copies worldwide its first week in stores — 1.7 million of them on Bluray Disc. The release outperformed even the most optimistic projections and, coupled with better-than-expected Black Friday sales for both Blu-ray Disc software and hardware, is turning frowns to smiles all over Hollywood. Studio executives who as recently as November were predicting the year would end with a 6% or 7% decline in total consumer spending on home entertainment are now saying the slippage could be as minor as 3% or 2% —small potatoes, given the current economic climate. Sony Pictures Home Entertainment president David Bishop’s comment in early 2008 that home entertainment leaders were “cautiously optimistic” about 2008 appears to have held true. Home Media Magazine’s market research department projects consumer home entertainment spending — DVD and Blu-ray, sales and rentals — will finish the year at $22.9 billion, down just 3.4% from the $23.7 billion they spent in 2007. And much of that is due to a decline in DVD purchases as consumers transition to Blu-ray Disc. “It’s really only a matter of time before we pick up the slack and packagedmedia sales are once again in positive territory,” quipped one observer. Indeed, the rapid gains Blu-ray is now making in both software and hardware sales hasn’t gone unnoticed, prompting home entertainment industry leaders to once again view the future with guarded optimism. “Consumers are telling us that Blu-ray is the future of home video entertainment,” said 20th Century Fox Home Entertainment president Mike Dunn. “If you have an HDTV, you can’t maximize your entertainment experience without Blu-ray.” “Blu-ray revolutionizes the way people can watch movies in their homes,” added Bob Chapek, president of Walt Disney Studios Home Entertainment. “It’s really become the definitive way for people to experience true high-definition movies at home.” Still, there’s a lot of uncertainty as the year winds down. Businesses of virtually all kinds are in trouble, and one of the most popular features on AOL is an article predicting that several major retail brands, including Chrysler and Rite-Aid, won’t make it through 2009. The malaise has certainly touched Hollywood. Most major studios have already had significant layoffs, with more rumored to come in January. But don’t blame home entertainment. It’s the economy, stupid. JUST ANNOUNCED A Weekly Product Update* Body of Lies STREET DATE Flash of Genius BOX OFFICE (MILLIONS) How to Lose Friends and Alienate … TITLE PREBOOK GENRE PRICE Body of Lies 2/17 1/13 $39 Action DVD $28.98, BD $35.99 Warner. 2008. Leonardo DiCaprio, Russell Crowe, Mark Strong, Oscar Issac, Ali Suliman. A CIA operative becomes entangled in dangerous Middle Eastern espionage because of his double-crossing boss. Also available in a two-DVD special edition with digital copy ($34.99). Flash of Genius 2/17 1/6 $4.3 Drama DVD $29.98 Universal. 2008. Greg Kinnear, Lauren Graham. Based on the true story of Robert Kearns, a part-time inventor who battled the U.S. auto industry for compensation for his invention of intermittent windshield wipers. How to Lose Friends and Alienate People 2/17 1/21 $2.8 Comedy DVD $27.98 Fox/MGM. 2008. Simon Pegg, Jeff Bridges, Kirsten Dunst, Megan Fox. Based on the Toby Young memoir of the same name, a contributing editor is hired by an upscale celebrity magazine and ends up annoying everyone around him to the detriment of his career. Ashes of Time Redux 3/3 1/29 $0.17 Action DVD $28.96 Sony Pictures. 2008. Leslie Cheung. From director Wong Kar-wai comes this martial arts film about a man in exile who facilitates hiring mercenary swordsmen for those who seek revenge. The soundtrack includes performances by famed cellist Yo-Yo Ma. The Midnight Meat Train 2/17 1/21 $0.08 Horror DVD $28.98, BD $39.99 Lionsgate. 2008. Bradley Cooper, Leslie Bibb, Tony Curran, Brooke Shields, Roger Bart. A photographer in pursuit of dark, gritty subject matter for his photos becomes obsessed with a serial killer who stalks late-night commuters in the subway. Amusement 1/20 Now DTV Horror DVD $27.95, BD $35.99 Warner. 2008. Keir O’Donnell, Katheryn Winnick, Jessica Lucas, Laura Breckenridge. Three longtime friends are held hostage by an unidentified person who wants revenge for a seemingly innocent childhood event. The End of America 1/20 Now DTV Documentary DVD $29.95 IndiePix. 2008. Based on Naomi Wolf’s bestselling book, the film uses interviews and archival footage to offer an indictment of the Bush Administration and sweeping policy changes that allegedly limit individual liberties and increase the power of government. Feast III: The Happy Finish 2/17 1/6 DTV Horror DVD $19.97 Genius/Weinstein. 2008. Jenny Wade, Martin Klebba, Clu Gulager, Craig Henningsen. This third installment in the franchise sees the survivors of the second film on a mission to hunt and destroy the beasts that have terrorized their city. * In order of box office, then prebook date CDSA: BD Growing Strong Continued from page 1 packaged disc in their hands, he said. Blu-ray may not have caught fire the way DVD did during its initial rollout, but analysts say it will help sustain the packaged-entertainment business through the end of 2012 and beyond. Although her company has adjusted down some of its growth estimates, Alison Casey, head of global content for the U.K.-based FutureSource Consulting, said, “Blu-ray will help stop the packagedmedia industry from declining.” She said that she forecasts some minor, single-digit growth as numbers of units increase, but downward pressure on pricing keeps profits flat. According to Casey, the outlook for Blu-ray in the near term is a mixed bag. FutureSource forecasts suggest December is a crucial month in the format’s sales. She said sales of HDTVs, which remain strong, will nudge sales of Blu-ray players. And retailers are enjoying a premium of about 60% on Blu-ray sales, compared to DVD prices. But, she said, the Blu-ray market is driven by new releases, replicators are reporting lower-than-expected demand, and awareness initiatives have not yet coalesced. Casey suggested that consumers are not completely convinced of the format’s value, particularly in a struggling economy. But, Casey said, there is good news by the end of the forecast period. By 2012, she said, the installed based of Blu-ray players will reach 53% household penetration. “Packaged media is not going away any time soon,” Casey said. One of the ways in which the industry hopes to distinguish Blu-ray is through BD Live. According to Zane Vella, CEO of Related Content Database, all studios are putting out Blu-ray titles with BD Live. Sony, for example, has 50 titles in the marketplace with BD Live interactivity. But there are questions about the value of BD Live to consumers. Vella said the mantra at his company is “No IT issues in the living room,” meaning that consumers aren’t interested in features that don’t function seamlessly. He said for content creators, BD Live is “as much an opportunity as it is a threat.” He noted that consumers lose interest quickly if they must struggle to make the applications work. Home Media Magazine December 28, 2008–January 4, 2009 http://www.homemediamagazine.com
Table of Contents Feed for the Digital Edition of Home Media Magazine - December 28, 2008 Contents News Gay & Lesbian Reviews TV DVD Pipeline Just Announced Hollywood Goes High Def Supplement Home Media Magazine - December 28, 2008 Home Media Magazine - December 28, 2008 - (Page Cover1) Home Media Magazine - December 28, 2008 - (Page Cover2) Home Media Magazine - December 28, 2008 - Contents (Page 3) Home Media Magazine - December 28, 2008 - Contents (Page 4) Home Media Magazine - December 28, 2008 - Contents (Page 5) Home Media Magazine - December 28, 2008 - News (Page 6) Home Media Magazine - December 28, 2008 - News (Page 7) Home Media Magazine - December 28, 2008 - News (Page 8) Home Media Magazine - December 28, 2008 - News (Page 9) Home Media Magazine - December 28, 2008 - News (Page 10) Home Media Magazine - December 28, 2008 - News (Page 11) Home Media Magazine - December 28, 2008 - News (Page 12) Home Media Magazine - December 28, 2008 - News (Page 13) Home Media Magazine - December 28, 2008 - Gay & Lesbian (Page 14) Home Media Magazine - December 28, 2008 - Gay & Lesbian (Page 15) Home Media Magazine - December 28, 2008 - Reviews (Page 16) Home Media Magazine - December 28, 2008 - Reviews (Page 17) Home Media Magazine - December 28, 2008 - TV DVD (Page 18) Home Media Magazine - December 28, 2008 - Pipeline (Page 19) Home Media Magazine - December 28, 2008 - Pipeline (Page 20) Home Media Magazine - December 28, 2008 - Pipeline (Page 21) Home Media Magazine - December 28, 2008 - Just Announced (Page 22) Home Media Magazine - December 28, 2008 - Just Announced (Page 23) Home Media Magazine - December 28, 2008 - Just Announced (Page Cover4) Home Media Magazine - December 28, 2008 - Just Announced (Page Tab1) Home Media Magazine - December 28, 2008 - Just Announced (Page Tab2) Home Media Magazine - December 28, 2008 - Hollywood Goes High Def Supplement (Page hghd1) Home Media Magazine - December 28, 2008 - Hollywood Goes High Def Supplement (Page hghd2) Home Media Magazine - December 28, 2008 - Hollywood Goes High Def Supplement (Page hghd3) Home Media Magazine - December 28, 2008 - Hollywood Goes High Def Supplement (Page hghd4) Home Media Magazine - December 28, 2008 - Hollywood Goes High Def Supplement (Page hghd5) Home Media Magazine - December 28, 2008 - Hollywood Goes High Def Supplement (Page hghd6) Home Media Magazine - December 28, 2008 - Hollywood Goes High Def Supplement (Page hghd7) Home Media Magazine - December 28, 2008 - Hollywood Goes High Def Supplement (Page hghd8) Home Media Magazine - December 28, 2008 - Hollywood Goes High Def Supplement (Page hghd9) Home Media Magazine - December 28, 2008 - Hollywood Goes High Def Supplement (Page hghd10) Home Media Magazine - December 28, 2008 - Hollywood Goes High Def Supplement (Page hghd11) Home Media Magazine - December 28, 2008 - Hollywood Goes High Def Supplement (Page hghd12) Home Media Magazine - December 28, 2008 - Hollywood Goes High Def Supplement (Page hghd13) Home Media Magazine - December 28, 2008 - Hollywood Goes High Def Supplement (Page hghd14) Home Media Magazine - December 28, 2008 - Hollywood Goes High Def Supplement (Page hghd15) Home Media Magazine - December 28, 2008 - Hollywood Goes High Def Supplement (Page hghd16) Home Media Magazine - December 28, 2008 - Hollywood Goes High Def Supplement (Page hghd17) Home Media Magazine - December 28, 2008 - Hollywood Goes High Def Supplement (Page hghd18) Home Media Magazine - December 28, 2008 - Hollywood Goes High Def Supplement (Page hghd19) Home Media Magazine - December 28, 2008 - Hollywood Goes High Def Supplement (Page hghd20)
For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.