Home Media Magazine - August 17, 2008 - (Page 32) NEWS www.homemediamagazine.com Cinram Preps for More Blu-ray Replication By Chris Tribbey eplicator Cinram is preparing for a wave of fourth-quarter Blu-ray Disc titles, installing more replication lines this summer, company CEO Dave Rubenstein said. Rubenstein also confirmed in an earnings call that Cinram will be handling replication duties for one of the Netflix Rocks! R biggest movies ever, The Dark Knight. Revenue for the Toronto-based company rose during the second quarter (ended June 30) to $412.8 million, compared to $345.1 million during the same period in 2007. Cinram posted a net loss of just more than $7 million, compared to a loss of $26.6 million during the same period in 2007. As for Blu-ray, Rubenstein said that while household attach rates to the highdef format remain low compared to DVD, he expects fourth-quarter 2008 to be huge for the format — and huge for Blu-ray replicators. “As the attach rate grows … we expect [our Blu-ray demand] to get bigger,” he said. “We’ve installed some more machinery to handle the fourth quarter needs.” Cinram replicated 246 million DVDs during the second quarter of 2008, compared to 209 million during the same period last year. For Blu-ray, Cinram reported replication revenue of $5.1 million in the second quarter, up from $4.2 million during the same period in 2007. Indie Suppliers Warming to Blu-ray Disc Continued from page 1 same period, only a few independents were releasing Blu-ray, with 15 total such discs. In 2008, through mid-August, studios have accounted for just less than 70% of releases so far this year (187), with more than a dozen independents streeting a total of 82 Blu-ray Discs. Authoring and replication prices continue to come down, while the large replicators are adding more capacity. But while more independents are releasing more Blu-ray product, a few issues are keeping some from going Blu, with consumer acceptance of the format being the No. 1 issue. “The biggest obstacle is no doubt consumer acceptance,” said Vanguard Cinema CEO Freyr Thor. “In order to really enjoy the difference, you need to trade out not only your TV but your sound equipment as well, for something more expensive. In today’s economy, who’s prioritizing this upgrade at home? “With increased consumption volume, manufacturing costs come down as well. Sony can also do its part to en- tice more releases on Blu-ray by simplifying their costly licensing structure.” Vanguard bowed several HD DVD titles before that format imploded. “In essence we needed to find a place of comfort in sales numbers relative to cost, where profit could be made,” Thor said. “We had found that sweet spot with the HD DVD format. … We have yet to find the same place of comfort with Blu-ray.” Consumer adoption of the format is also the top concern for Westlake Entertainment. “As consumers accept the format, there will be more and more room for a company like Westlake to have Bluray titles,” said Westlake Entertainment principal Larry Cohen. “But let’s face it, the category of independent film, as much as we love it, is probably not the first genre the current Blu-ray customer is searching for.” He said Westlake would start releasing titles on Blu-ray in April, beginning with the Hoop Dreams sequel Hoop Reality. MPI Media Group has announced its first four Blu-ray titles, starting with the original 1974 Texas Chain- saw Massacre Sept. 30. But it wasn’t an easy decision. “For many independents, at this point, much of their content may not make sense for Blu-ray,” said MPI EVP Badie Ali. “At the end of the day, the economic principle of supply and demand is king.” MTI Home Video president Larry Brahms said household hardware penetration is the biggest issue. “As more players come down in price and get a deeper penetration into the marketplace, the demand for independent product in the format will increase accordingly,” he said, adding that in January MTI will release its first Blu-ray with Pirates 2. “We’re not that concerned about the replication and authoring costs,” he said. “They will all come into line as the format increases in demand.” Replication and authoring costs are what’s stopping LifeSize Entertainment from releasing Blu-ray, according to president Bruce Frigeri. “It doesn’t make sense to tack on another replication bill,” he said. For anime suppliers, there are other impediments. Only Funima- tion and Bandai Entertainment have Blu-ray titles out or ready to go, while others are holding off. It has little to do with consumer acceptance or replication and authoring costs, according to Shawne Kleckner, CEO and president of The Right Stuf International. “The problem is anything made before four or five years ago wasn’t mastered at a high enough quality for high-definition,” he said. Also, because anime distributors license their content from Japan, they confront another problem. “The Japanese are scared to death a Blu-ray released here will get out before they can release their Blu-ray there,” Kleckner said. However, Blu-ray has been huge for other independents. Topics Entertainment president Greg James said his company’s Over America has sold more than 100,000 units, and other scenic titles also have done well. Topics has six more Blu-rays lined up. “For us, we’re just really happy that all the major retailers are carrying it,” he said. “We were really lucky because Sony wanted those titles, and they helped us with the replication.” “Heroes” stars Hayden Panettiere (middle) and Adrian Pasdar (left) perform with “House’s” Jesse Spencer during the Netflix LIVE! on Location concert Aug. 9 in Los Angeles. Photo by: Netflix, Susan Goldman September Continued from page 1 L ATE FL ASHES I ENTERTAINMENT HELPS DRIVE RECORD WAL-MART Q2 Consumer spending on entertainment and consumer electronics (CE) helped Wal-Mart Stores report record secondquarter (ended July 31) income of nearly $3.4 billion, up 9.3% from $3 billion during the same period last year. Same-store sales (open at least 12 months) increased 4.6% from the same period the year before. Eduardo Castro-Wright, president and CEO of Wal-Mart Stores U.S., said sales of video games, consoles, movies and high-definition flat-panel televisions spearheaded entertainment revenue. “Our entertainment business continues to exceed plan,” Castro-Wright said in a call with investors. Spokesperson Melissa O’Brien said entertainment and electronics continue to be strong units for Wal-Mart. “We continue to carry four different versions of Blu-ray players in our stores, and also have recently expanded our line of Blu-ray movies,” O’Brien said. — Erik Gruenwedel July, compared to about 205,000 units for Microsoft’s Xbox 360, according to The NPD Group. Meanwhile, Nintendo’s Wii scored 555,000 unit sales for the month. — Stephanie Prange I PARAMOUNT OFFERS $10 DISCOUNT FOR BLU UPGRADE Paramount Home Entertainment will offer DVD collectors a $10 rebate when they upgrade select Paramount and DreamWorks titles to Blu-ray Disc. Mail-in certificates will be available in the Blu-ray packages of Transformers, The Godfather, Old School, Stardust, Sweeney Todd and Zodiac. To receive the $10 sav- ings, consumers must fill out the certificate and include the proof-of-purchase tabs from both the DVD and Blu-ray of the title, along with the receipt for the Blu-ray version. The purchase must be made by Dec. 31, 2009, and rebate requests must be postmarked by Jan. 31, 2010. — John Latchem I WARNER TO BOW MOVIE CLASSICS IN HIGH-DEF VOD Warner Bros. Digital Distribution Aug. 14 began offering 85 of its movie classics for the first time on high-definition video-on-demand as part of the studio’s year-long 85th anniversary celebration. — Erik Gruenwedel I PS3 TOPS XBOX 360 IN JULY HARDWARE SALES Sony’s Blu-ray-enabled PlayStation 3 racked up nearly 225,000 in unit sales in as Iron Man (Paramount) and Sex and the City (Warner) in September, along with high-profile comedies Baby Mama and Forgetting Sarah Marshall (both Universal). In fact, the box office punch for September disc releases is up 156.7% compared to last year’s September slate, according to Home Media Magazine market research. “September is looking pretty good, actually,” said Blockbuster CEO Jim Keyes in this month’s second-quarter earnings call. “We have some good titles coming out in September.” “Everyone’s not waiting for October,” noted Tom Adams of Adams Media Research. Last year, the hits clustered in the October-December timeframe. Several $100-million-plus blockbusters came out on the same day on disc in the fourth quarter. For instance, Shrek the Third and Ocean’s Thirteen both hit shelves Nov. 13; Superbad and Pirates of the Caribbean: At World’s End both came out Dec. 4; and Harry Potter and the Order of the Phoenix and The Bourne Ultimatum both debuted Dec. 11. “To have to battle for that share with another title of that size is difficult,” Adams said. The home entertainment business may be following the theatrical trend, he said. “The summer is creeping forward, too, for box office hits,” he said, noting the summer theatrical slate now starts in May, rather then June. HOME MEDIA MAGAZINE (ISSN 1934-9882) is published weekly 51 times per year (weekly except for one week at the end of December) by Questex Media Group, Inc., 306 West Michigan Street, Suite 200, Duluth, MN 55802. Subscription rates: $49.99 for one year in the United States and Possessions; $79.99 for one year in Canada and Mexico; all other countries $99.99 for one year (by surface mail). Add $75 annually for air-expedited service. Single copies (prepaid only): $6.99 in the United States, $8.99 in Canada and Mexico, $13.99 all other countries. Back issues, if available: $9.99 in the U.S.; $15.99 in Canada and Mexico; $26.99 for all other countries. Include $6.50 per order plus $2 per additional copy for U.S. postage and handling. Periodicals postage paid at Duluth MN 55806 and additional mailing offices. POSTMASTER: Please send address changes to http://www.homemediamagazine.com
Table of Contents Feed for the Digital Edition of Home Media Magazine - August 17, 2008 Home Media Magazine - August 17, 2008 Contents News News High-Def News Electronic Delivery News TV DVD Kidvid Reviews Pipeline Research Top 20 DVD Sellers Top 20 Rentals and Top 10 Charts Just Announced Home Media Magazine - August 17, 2008 Home Media Magazine - August 17, 2008 - Home Media Magazine - August 17, 2008 (Page Cover1) Home Media Magazine - August 17, 2008 - Home Media Magazine - August 17, 2008 (Page Cover2) Home Media Magazine - August 17, 2008 - Home Media Magazine - August 17, 2008 (Page 1) Home Media Magazine - August 17, 2008 - Home Media Magazine - August 17, 2008 (Page 2) Home Media Magazine - August 17, 2008 - Home Media Magazine - August 17, 2008 (Page 3) Home Media Magazine - August 17, 2008 - Home Media Magazine - August 17, 2008 (Page 4) Home Media Magazine - August 17, 2008 - Contents (Page 5) Home Media Magazine - August 17, 2008 - Contents (Page 6) Home Media Magazine - August 17, 2008 - Contents (Page 7) Home Media Magazine - August 17, 2008 - News (Page 8) Home Media Magazine - August 17, 2008 - News (Page 9) Home Media Magazine - August 17, 2008 - High-Def News (Page 10) Home Media Magazine - August 17, 2008 - High-Def News (Page 11) Home Media Magazine - August 17, 2008 - Electronic Delivery News (Page 12) Home Media Magazine - August 17, 2008 - Electronic Delivery News (Page 13) Home Media Magazine - August 17, 2008 - TV DVD (Page 14) Home Media Magazine - August 17, 2008 - TV DVD (Page 15) Home Media Magazine - August 17, 2008 - Kidvid (Page 16) Home Media Magazine - August 17, 2008 - Kidvid (Page 17) Home Media Magazine - August 17, 2008 - Reviews (Page 18) Home Media Magazine - August 17, 2008 - Reviews (Page 19) Home Media Magazine - August 17, 2008 - Reviews (Page 20) Home Media Magazine - August 17, 2008 - Reviews (Page 21) Home Media Magazine - August 17, 2008 - Reviews (Page 22) Home Media Magazine - August 17, 2008 - Reviews (Page 23) Home Media Magazine - August 17, 2008 - Pipeline (Page 24) Home Media Magazine - August 17, 2008 - Pipeline (Page 25) Home Media Magazine - August 17, 2008 - Top 20 DVD Sellers (Page 26) Home Media Magazine - August 17, 2008 - Top 20 DVD Sellers (Page 27) Home Media Magazine - August 17, 2008 - Top 20 Rentals and Top 10 Charts (Page 28) Home Media Magazine - August 17, 2008 - Top 20 Rentals and Top 10 Charts (Page 29) Home Media Magazine - August 17, 2008 - Just Announced (Page 30) Home Media Magazine - August 17, 2008 - Just Announced (Page 31) Home Media Magazine - August 17, 2008 - Just Announced (Page 32) Home Media Magazine - August 17, 2008 - Just Announced (Page Cover3) Home Media Magazine - August 17, 2008 - Just Announced (Page Cover4)
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