Home Media Magazine - March 30 - April 5, 2009 - (Page 22) NEWS Blockbuster Inks Deals With Tivo, Maya Continued from page 1 www.homemediamagazine.com The shift by the Dallas-based company to integrate Blockbuster OnDemand (formerly Movielink) into TiVo DVRs appears to be an attempt to usurp the digital rental market controlled by Netflix. Comparatively, Netflix Watch Instantly offers 12,000 (lesser-known, older) streams. For Alviso, Calif.-based TiVo, Blockbuster’s library of new and catalog digital titles represents a formidable valueadd to its subscriber base, which has steadily eroded over the years due to the proliferation of deeply discounted DVR set-top boxes by cable providers. “Ultimately, our vision is to work with TiVo so that their subscribers can access movies not only through our OnDemand service but also from our stores and through our by-mail services as well,” said Blockbuster CEO Jim Keyes. “Regardless of a film’s availability — through VOD or on DVD — we want to work with TiVo to provide their subscribers unprecedented access to movie content.” Blockbuster has seen its stock hammered since disclosing it had hired a law firm to assist it with financing issues. Edward Woo, analyst with Wedbush Morgan Securities in Los Angeles, who covers Blockbuster, said the TiVo deal would do little to satiate the Wall Street bears. “As part of a strategy aiming to be a broad provider of entertainment, I think they have a reasonable chance to succeed,” Woo said. “This does seem to be a relatively low incremental cost for both parties.” The day (March 23) the Dow Jones soared 500 points, shares of Blockbuster fell more than 13% in trading as investors continued to doubt whether it could survive the current economic tsunami. Generating about $1.4 billion in revenue in 90 days apparently doesn’t carry much clout — especially if you are considered by some to be a 1980s retail retread. While investors cite the usual suspects — declining DVD sales and the emergence of digital streaming — growing concern emerged when it was suggested Blockbuster would struggle to pay off a $200 million maturing credit revolver and/or find a replacement source of funds. In a recent financial call, CEO Jim Keyes appeared to underscore those concerns when he said Blockbuster’s ambitious transformation from rental pure play to all-in-one entertainment retailer would have to be borne more on the backs of third-party partners than internal financing. When the company announced it had secured through 2010 an amended revolver with J.P. Morgan and others, Pali Capital analyst Stacey Widlitz estimated Blockbuster had now saddled itself with $305 million in new debt obligations, including monthly revolver payments starting next January. While the interest rate on the new revolver is below previous estimates, a monthly payment of $25 million is due in December this year, followed by separate $20 million payments January through March, $10 million in April, $15 million in May, and $10 million in July and August. A separate $50 million payment is due in June 2010, according to a regulatory filing. “The terms of the agreement put [Blockbuster] on a short leash in terms of running the business,” Widlitz said, in a note. What appeared lost in the new funding was that Blockbuster reported $80 million in profit in the quarter, when eliminating $435 million write-down of “impairment goodwill and other long-lived assets.” Wedbush analyst Michael Pachter agreed the terms of the new line of credit were “pretty tough,” but said people were jumping to the conclusion Blockbuster is desperate. “They are trying to get this out of the way to move on,” he said. “They will access the [revolver] only as a backstop … but the market doesn’t like it.” In other news, Blockbuster said it would co-sponsor a Latino film festival and national screenwriting competition. Together with Maya Entertainment, Blockbuster will host Maya Independent, a 10-city film festival, in addition to promoting a screenwriting competition. Project Goldenlight will select an original screenplay from a pool of contestants and produce a movie developed by Maya. Depending on the output, a final product would be released theatrically and then have an exclusive rental window at participating Blockbuster stores. Sony Goes Green With ‘Paul Blart’ By Erik Gruenwedel ony Pictures Home Entertainment May 19 streets the $141.5 million box office comedy Paul Blart: Mall Cop in eco-friendly packaging for the $28.96 DVD release. The DVD packaging, already in use by studios such as Lionsgate and Fox, uses 20% less plastic and reduces the case’s carbon footprint 20%, according to Sony. The title is the studio’s first to feature an ultra-light DVD case earmarked for all newly manufactured single-disc DVD releases this year. The studio said the case would contribute to the elimination of an estimated 2 million pounds of annual carbon emissions in North America by the end of the year. S While the Blart case features cutouts in the plastic, future releases would include cases made out of thinner polypropylene plastic, shrinkwrap and elimination of the paper O-ring sleeve. Eliminating O-rings would save about 85 tons, or 2,200 trees annually, according to Lexine Wong, senior EVP of worldwide marketing for SPHE. She said there are ongoing efforts to reduce the carbon footprint on future Blu-ray releases to coincide with the reduction of about 20% of the corrugated material used in retail displays. “That has resulted in savings of more than 6.7 million square feet, which impacts two of our biggest retailers,” Wong said. VENTRILOQUIST DUNHAM MOVES SHTICK TO COMEDY CENTRAL By Erik Gruenwedel omedy Central has signed comedy veteran Jeff Dunham to a multiyear deal that includes DVDs, consumer products, a 60-city comedy tour and stand-up TV special. Dunham’s 2008 stand-up special, A Very Special Christmas Special DVD from Image Entertainment, hit quadruple platinum in its first two weeks. Comedy Central is planning an original series based on Dunham’s characters and a stand-up special to air in 2010. The series and special, together with outtakes from the tour, will be released on DVD and Bluray Disc. Comedy Central DVDs are distributed by Paramount Home Entertainment. JUST ANNOUNCED A Weekly Product Update* PEOPLE I FOX TAPS MULVIHILL Mike Mulvihill has been named SVP of global content development at 20th Century Fox Home Entertainment. Mulvihill will lead conception and production of content for the home entertainment division and will report Mulvihill to Tim Bergin, SVP of global marketing services. He previously served as SVP of content development for New Line Home Entertainment. “Mike is a proven leader with an eye on the future. His experience and expertise makes him a strategic asset to the home entertainment group as we continue to grow and evolve our DVD business with Blu-ray and other emerging technologies,” Bergin said. Gran Torino STREET DATE New in Town BOX OFFICE (MILLIONS) Weeds I MAYA NAMES NEW EVP Latino filmed entertainment company Maya Entertainment has promoted Jose Martinez Jr. to EVP. Martinez joined Maya a year ago as general counsel/head of acquisitions and has acquired such films as How the Garcia Girls Martinez Spent Their Summer with America Ferrera. As EVP, Martinez will manage all company operations, including TV and foreign sales, acquisitions and business affairs. “We have seen a tremendous amount of growth since we launched a year ago,” said co-chairman and founder Moctesuma Esparza. “Jose brings the level of experience and expertise we need to successfully manage our budding business – Billy Gil objectives and needs.” TITLE PREBOOK GENRE PRICE Gran Torino 6/9 4/28 $145.2 Drama DVD $28.98, BD $35.99 Warner. 2008. Clint Eastwood stars as a Korean War veteran hell-bent on reforming the young Hmong teenager who tried to steal his car. Includes the featurettes “Manning the Wheel: American Car Culture and Manhood” and “Gran Torino: More Than a Car.” New in Town 5/26 4/29 $16.7 Comedy DVD $29.95, BD $39.99 Lionsgate. 2009. Renee Zellweger, Harry Connick Jr., Frances Conroy, J.K. Simmons. A romantic comedy about a Miami businesswoman trying to adjust to her new life in a small Minnesota town. Includes commentary, deleted scenes and several featurettes. Weeds: Season Four 6/2 5/6 Cable Comedy DVD $39.98, BD $39.98 Lionsgate. Mary-Louise Parker, Elizabeth Perkins, Kevin Nealon. The three-DVD or two-disc Blu-ray sets include all 13 episodes of the 2008 season of the Showtime series about a single mom who resorts to dealing pot to support her family. Jockeys 6/30 5/19 Cable Reality DVD $19.95 Genius. The two-DVD set includes all 14 episodes of the first season of the Animal Planet series about horse racing. The show follows the diminutive riders and their horses through the ups and downs of their careers. Children of the Corn 7/28 6/25 Re-release Horror Blu-ray $29.97 Anchor Bay. 1984. Linda Hamilton, Peter Horton, John Franklin. Based on the Stephen King short story, a young couple is stranded in a small Nebraska town where all the adults have been killed by a cult of children who worship a corn god. * In order of box office, then prebook date Home Media Magazine March 30–April 5, 2009 http://www.homemediamagazine.com
Table of Contents Feed for the Digital Edition of Home Media Magazine - March 30 - April 5, 2009 Home Media Magazine - March 30 - April 5, 2009 Contents News News News Mother’s Day Reviews Research Top 20 Sellers Top 20 Rentals and Top 10 Charts Just Announced Home Media Magazine - March 30 - April 5, 2009 Home Media Magazine - March 30 - April 5, 2009 - Home Media Magazine - March 30 - April 5, 2009 (Page Cover1) Home Media Magazine - March 30 - April 5, 2009 - Home Media Magazine - March 30 - April 5, 2009 (Page Cover2) Home Media Magazine - March 30 - April 5, 2009 - Home Media Magazine - March 30 - April 5, 2009 (Page 1) Home Media Magazine - March 30 - April 5, 2009 - Home Media Magazine - March 30 - April 5, 2009 (Page 2) Home Media Magazine - March 30 - April 5, 2009 - Home Media Magazine - March 30 - April 5, 2009 (Page 3) Home Media Magazine - March 30 - April 5, 2009 - Home Media Magazine - March 30 - April 5, 2009 (Page 4) Home Media Magazine - March 30 - April 5, 2009 - Contents (Page 5) Home Media Magazine - March 30 - April 5, 2009 - News (Page 6) Home Media Magazine - March 30 - April 5, 2009 - News (Page 7) Home Media Magazine - March 30 - April 5, 2009 - News (Page 8) Home Media Magazine - March 30 - April 5, 2009 - News (Page 9) Home Media Magazine - March 30 - April 5, 2009 - News (Page 10) Home Media Magazine - March 30 - April 5, 2009 - News (Page 11) Home Media Magazine - March 30 - April 5, 2009 - News (Page 12) Home Media Magazine - March 30 - April 5, 2009 - News (Page 13) Home Media Magazine - March 30 - April 5, 2009 - News (Page 14) Home Media Magazine - March 30 - April 5, 2009 - News (Page 15) Home Media Magazine - March 30 - April 5, 2009 - Mother’s Day (Page 16) Home Media Magazine - March 30 - April 5, 2009 - Mother’s Day (Page 17) Home Media Magazine - March 30 - April 5, 2009 - Reviews (Page 18) Home Media Magazine - March 30 - April 5, 2009 - Reviews (Page 19) Home Media Magazine - March 30 - April 5, 2009 - Top 20 Sellers (Page 20) Home Media Magazine - March 30 - April 5, 2009 - Top 20 Rentals and Top 10 Charts (Page 21) Home Media Magazine - March 30 - April 5, 2009 - Just Announced (Page 22) Home Media Magazine - March 30 - April 5, 2009 - Just Announced (Page 23) Home Media Magazine - March 30 - April 5, 2009 - Just Announced (Page 24) Home Media Magazine - March 30 - April 5, 2009 - Just Announced (Page Cover3) Home Media Magazine - March 30 - April 5, 2009 - Just Announced (Page Cover4)
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