Home Media Magazine - February 16-22, 2009 - (Page 3) il E ter /da IB slet .com CR New zine B S ai l y a g a SU ’s D diam H M me to me ho w. ww FEBRUARY 16–22, 2009 Home A R C H Media RESE $600 $500 In Millions TOTAL PACKAGED-MEDIA SALES REVENUE* $400 $300 $200 $100 11/23/08 11/30/08 12/7/08 12/14/08 12/21/08 12/28/08 1/4/09 $153.11 million Down 10.35% from the same week the previous year. y 1/11/09 1/18/09 1/25/09 2/1/09 2/8/09 I CURRENT I ONE YEAR AGO *DVD and Blu-ray Disc Source: Home Media Research DVD REVENUE: Week ended 2/8/09: $142.11 million Down 13.32% from the same week last year. BLU-RAY DISC REVENUE: Week ended 2/8/09: $11 million Up 61.03% from the same week last year. TOTAL RELEASE BOX OFFICE POWER Week ended 2/8/09: $284.37 million. Up 214.71% from the same week last year. 7% 93% w w w.HomeMediaMaga zine.c om TOTAL RELEASE BOX OFFICE POWER Week ended 2/22/09: $220.54 million. Up 14.84% from the same week last year. Viacom CEO Faults Blockbuster Testing Online Video Game Rentals in Q2 Economy for Disc Drop Home entertainment sales down for Q4, but up for the year fell 2%, to $1.87 billion. By Chris Tribbey SUPPLIER The fourth quarter at Paramount Meanwhile, for the year, home entertainment revenue actually Home Entertainment took increased 9% to more a hit. Even backed by Iron «DESPITE THE ORGY OF Man, with an assist from PESSIMISM OF LATE, THE TIDE than $2.7 billion. TheatriIndiana Jones and the KingOF THE ECONOMY AND OUR cal revenue grew 17% to dom of the Crystal Skull and INDUSTRY WILL RISE AGAIN.» $1.71 billion. Viacom — parent of Kung Fu Panda, Paramount PHILIPPE DAUMAN, PRESIDENT Paramount, MTV and a Home Entertainment’s AND CEO OF VIACOM host of other media comfourth-quarter (ended Dec. 31, 2008) revenue declined 6% from the prior- panies — disclosed the home entertainment year period, to just over $1 billion. All filmed- revenue in its quarterly financials. entertainment revenue for the fourth quarter See VIACOM, Page 24 By Erik Gruenwedel RETAIL Blockbuster Inc. Feb. 11 said it would begin testing by-mail game rentals in the second quarter. The Dallas-based No. 1 DVD rental service said it would offer select Blockbuster Total Access subscribers the option to rent games online and return them in-store for half-price exchanges. Total Access allows for free in-store Blu-ray Disc and DVD movie rental exchanges. Video game rentals are considered a $1 billion market segment, compared to $8 billion for DVD and Blu-ray rentals, according to Adams Media Research. Blockbuster, which claims the largest video game rental market penetration at 60%, would be a formidable presence online in a niche segment started in 2002 by pioneer GameFly, which offers subscription plans starting at $15.95 per month for one game at a time. Other online players include Gamerang ($17.95), Gottaplay ($12.95), RentZero ($13.95), GPlay ($14.95), NumbThumb ($11.95) and GameznFlix.com at $8.99 per month. Blockbuster’s by-mail rental plans for movies and games start at $3.99 per month for one title. “A combination video game and movie online See BLOCKBUSTER, Page 22 Lionsgate: No Blame for DVD In Its $93.4M Quarterly Loss By Erik Gruenwedel SUPPLIER In a switch, Lionsgate Feb. 9 cited the poor performance of its theatrical release slate — and not DVD — in reporting a $93.4 million third-quarter (ended Dec. 31, 2008) net loss, compared to net income of $7.3 mil- NETFLIX MILESTONE: 10M SUBSCRIBERS By Erik Gruenwedel COINSTAR TO BUY MCDONALD’S INTEREST IN KIOSK CO. REDBOX By Chris Tribbey lion during the prior-year period. Unlike Disney, Fox and Warner Bros., which all partially attributed recent quarterly studio revenue declines to softening of the DVD market, Lionsgate said wide theatrical releases of See LIONSGATE, Page 24 Online subscription rental, spearheaded by industry pioneer Netflix Inc., continues to be a recession-buster. The Los Gatos, Calif.-based service Feb. 12 said it added 600,000 net subscribers since the first of the year, bringing its total membership past 10 million subs. It See NETFLIX, Page 22 RETAIL Coinstar Inc. announced Feb. 12 that it will buy McDonald’s interest in DVD rental kiosk operator Redbox for as much as $151 million in cash and stock by the end of February. The deal includes 1.5 million shares of stock in Coinstar and $10 million in cash to McDonald’s affiliate GetAMovie Inc. Coinstar also announced it would seek to buy the remaining minority interests in Redbox See REDBOX, Page 22 RETAIL DISNEY TO GET DISCS OF DREAMWORKS IN 2010 By Erik Gruenwedel >> ELECTRONIC DELIVERY Vudu at Half-Price Vudu cuts the price of its VOD set-top box to $149 from $299. PAGE 11 >> HIGH-DEF DTV DELAY MADE OFFICIAL By Chris Tribbey INSIDE >> Analysts Debate Blu Sequel to DVD or CE curio? PAGE 10 The Walt Disney Co. Feb. 9 confirmed speculation that it had entered into a long-term agreement with DreamWorks Studios to distribute all of the studio’s liveaction movies beginning in 2010. The five-year deal would end DreamWorks’ See DISNEY, Page 24 SUPPLIER P resident Obama signed a bill Feb. 11 delaying the digital TV transition to June 12. However, even though millions of American homes still getting their TV via analog transmissions have been given a reprieve, fresh concerns are popping up. The National Telecommunications and Information Administration (NTIA), which in January ran out of the $1.34 billion Congress gave it to administer a $40 consumer See DTV, Page 24 NEWS Twilight marks just the latest release to come out on DVD, Blu-ray Disc and VOD the same day. RESEARCH Paramount’s Madagascar: Escape 2 Africa made off as the top seller, while Sony Pictures’ Lakeview Terrace held fast atop rentals. PRODUCT Studios look to dog-themed releases, with announcements for Fox’s Marley & Me, and Disney’s Beverly Hills Chihuahua and Bolt. Page 8 Page 21 Page 22 http://www.homemediamagazine.com/daily http://www.HomeMediaMagazine.com http://www.GameznFlix.com
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