Home Media Magazine - March 30 - April 5, 2009 - (Page 3)

MARCH 30–APRIL 5, 2009 >> ELECTRO N IC DELIVERY INSIDE Blockbuster to Sell, Rent Movies Through TiVo DVR Set-Top Box By Erik Gruenwedel RETAIL Blockbuster Inc. and digital video recording pioneer TiVo will partner to rent and sell movies and TV shows electronically later this year. TiVo users will have streaming access to 10,000 new and catalog digital titles from $1.99 each and can buy movies starting at $14.99 each. The Blockbuster OnDemand feature will be available for users of the TiVo Series 2 and 3 devices, TiVo HD and TiVo HD XL DVRs. Plans also include integrating Blockbuster’s by-mail and in-store physical DVD rental programs into TiVo subscription services. Additional cross-marketing strategies include selling TiVo’s series of broadband-enabled DVRs at Blockbuster corporate stores. See BLOCKBUSTER, Page 22 INSIDE >> Web Surge TV.com, Hulu report growth. >> ‘Madness’ Boosts CBS March Madness On Demand traffic up 60%. PAGE 13 WWW.HOMEMEDIAMAGAZINE.COM Rental, sellthrough are holding up in downturn By Erik Gruenwedel ackaged-media retail and rental continue to fare better than expected despite an economic downturn that has crippled consumer confidence. Indeed, DVD sales (excluding Blu-ray) are down 10.5% to $1.45 billion through March 22, according to Home Media Research, with rental up significantly and earmarked for $8 billion in revenue this year, according to Adams Media Research. Wal-Mart Stores, which reportedly controls 40% of DVD sellthough, last month said it would remain on the offensive in marketing packaged-media exclusives, citing strong fourthquarter (ended Jan. 31) growth in DVD and Blu-ray Disc revenue. Wal-Mart, in addition to Target, Best Buy and other national chains, aggressively promoted the recent disc release of Summit Home Entertainment’s Twilight (see story below). See RETAILERS, Page 24 RESILIENT Best Buy Q4 Sales Grow, Profit Dips By Erik Gruenwedel RETAIL Best Buy reported fourthquarter (ended Feb. 28) net income of $570 million, down 23% from income of $737 million during the previousyear period. Excluding pretax restructuring and impairment charges totaling $144 million, net income declined just 6% to $682 million. Included in the restructuring costs was $78 million for voluntary separation charges when 500 corporate employees opted for enhanced severance packages and left the company. Same-store (open at least 12 months) sales in the United States fell 2.5%, compared to a 6.8% decline the previous year. The decline P Home A R C H Media RESE $200 $175 $150 $125 was driven by a reduction in customer traffic, partially offset by an increase in the average ticket. Entertainment-software sales, which include DVD and Blu-ray Discs and music CDs, declined 11%, compared to a 1% increase from the year before. Low double-digit declines in DVDs and See BEST BUY, Page 24 >> HIGH-DEF Blu Bond Offer Best Buy offers James Bond BD films with a Samsung BD player. BUSIN ESS IN THE NEW ECONOMY News Analysis This is one in a series of articles on the new packaged-media paradigm. LCD Growth Down Plasma panel shipment growth is projected to slow for the year. INSIDE | PAGE 12 TOTAL PACKAGED-MEDIA SALES REVENUE* $194.46 million Down 1.37% from the same week the previous year. ‘Twilight’ Shines on Disc 3/22/09 $100 1/4/09 I CURRENT 1/11/09 1/18/09 1/25/09 2/1/09 2/8/09 2/15/09 2/22/09 3/1/09 3/8/09 3/15/09 I ONE YEAR AGO *DVD and Blu-ray Disc Source: Home Media Research DVD REVENUE: Week ended 3/22/09: $175.67 million Down 2.08% from the same week last year. BLU-RAY DISC REVENUE: Week ended 3/22/09: $18.79 million Up 5.89% from the same week last year. NEW-RELEASE BOX OFFICE POWER Week ended 3/22/09: $316.44 million. Down 29.41% from the same week last year. 9% 91% NEW-RELEASE BOX OFFICE POWER Week ending 4/5/09: $357.74 million. Up 32.79% from the same week last year. By Chris Tribbey and Erik Gruenwedel PRODUCT Summit Home Entertainment saw unit sales of 3 million the weekend ended March 22, after it released teen-vampire phenomenon Twilight at 12:00 a.m. March 21 to a rabid fan base. The title went straight to No. 1 on the Nielsen VideoScan First Alert sales chart, outselling runner-up Pinocchio from Disney by a nearly 10-to-1 margin. Wal-Mart reported Twilight as its most pre-ordered DVD in history. Twilight also was the top Blu-ray Disc seller for the week, with Blu-ray Discs only available See ‘TWILIGHT’, Page 24 In Millions Sandra Garibay (left), 28, and Susanna Garibay, 26, waited in line for hours at the Hot Topic at the Hollywood & Highland Center in Hollywood, Calif. NEWS Hastings posted a smaller fourthquarter income compared to the previous year, but still raked in $4.1 million in a down economy. PRODUCT With Mother’s Day around the corner, studios line up titles to please moms such as Fox’s Marley & Me. RESEARCH Twilight had no trouble drawing sales for Summit Entertainment, while Universal’s Role Models was still the top rental. Page 6 Page 16 Page 20 http://www.TV.com http://www.homemediamagazine.com

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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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