Home Media Magazine - August 31 - September 6, 2008 - (Page 12) COMMENTARY www.homemediamagazine.com THE BUZZ BY ERIK GRUENWEDEL, SENIOR EDITOR DVD Saves the Day A funny thing happened on the way to the doctor’s office: The patient got out of the wheelchair and hit a home run. Forgive DVD if it feels it should be in therapy instead of the ER after the flak it has taken in the media with calls to step aside for electronic distribution or reinvent itself by turning Blu. Dismissed as an impotent cash cow and written off by one analyst as the common thread to Hollywood’s dated reliance on physical media, DVD emerged a walk-off hero in recent studio fiscal results. News Corp. (which owns 20th Century Fox), Time Warner and Lionsgate all cited DVD (and Blu-ray) as a cornerstone to robust performances by their filmed entertainment units. Lionsgate said DVD helped increase home entertainment revenue 47% to $152.2 million, and Blu-ray gen- MANY GLOAT THAT ELECTRONIC DISTRIBUTION GENERATED $600 MILLION AND HIGHER MARGINS THAN PACKAGED MEDIA IN THE FIRST HALF OF THE YEAR. APPARENTLY DVD’S $6.8 BILLION IN FIRST-HALF SALES WAS CHOPPED LIVER. erated $260 million in the first six months of 2008, up 330% from the same period last year. DVD contributed to a 16% rise in Warner Bros.’ operating income to $94 million — all the more impressive considering the tally did not include revenue from The Dark Knight. Fox said DVD helped to more than double operating income to $220 million from $106 million last year. Peter Chernin, president and COO of News Corp., said DVD sales continued to outperform despite “hand wringing” by the media and analysts about the health of the DVD industry. Erik Gruenwedel’s e-mail address is egruenwedel@questex.com Indeed, many gloat that electronic distribution generated $600 million and higher margins than packaged media in the first half of the year. Apparently DVD’s $6.8 billion in first-half sales — up 1.1% from last year — was chopped liver. Reminds me of a rant by conservative pundit Bill O’Reilly. He lamented that if Barack Obama is elected president, his 40%+ federal income taxes would increase significantly to pay for those he said do not pay any income tax. I bet every one of those tax “freeloaders” hovering above the poverty line would gladly pay Uncle Sam in exchange for O’Reilly’s multimillion dollar income. So too, should studios, analysts and critics rejoice in DVD’s stable billions rather than electronics’ burgeoning millions. T H EY SA ID IT Boards Buzz About Q4 Blu By Billy Gil he fourth quarter is an exciting time for the home entertainment industry, and this one is no exception. In facing a depressed economy, studios are hoping Blu-ray Disc takes hold with the general public, with numerous releases slated for the next-generation high-definition disc. If Web site chatter is any indication, a certain vigilante in black tights may just come to rescue the home entertainment industry come winter, the same way he did for theatrical in the summer. Forum users already are buzzing about Warner Home Video’s The Dark Knight on both DVD and Blu-ray Disc, which, provided it is released before the end of the year, should be a welcome shot in the arm to the industry. “That movie is going to break all of the Blu-ray sales records,” said Blu-ray.com forum user Blu Titan. “Before it is over, 1 million BDs will be sold.” Blu-ray.com user Phowl commented on adjusting the aspect ratio from Imax to Blu-ray. “While there certainly is a difference in the ratios — on any standard widescreen TV, the change in ratios will be noticeable — but not so much as to annoy you,” Phowl said. Home Theater Forum user Brent M. said, “I finally got around to watching the prologue on the Blu-ray tonight and HOLY BALLS!!! The picture and sound quality for those six minutes may be the best content I’ve experienced on Blu-ray yet.” Blu-ray.com forum user blu_world wondered why people wouldn’t buy The Dark Knight on Blu-ray when they’ve spent the money on a $3,000 HDTV. “Just a warning for people out there shopping in December: Get the Blu-ray player and Dark Knight the best gift ever!!!” blu_world said. The Dark Knight isn’t the only release to garner buzz. Walt Disney Studios Home Entertainment announced the Nov. 18 release date for Wall-E last week, and boards are buzzing about its different permutations: a single-disc DVD, a three-disc special edition DVD with digital copy, a two-disc “DVD IS NOT A HIGH-DEFINITION FORMAT, NO MATTER WHAT IS DONE TO THE OUTPUT SIGNAL.” Andy Parsons, SVP of advanced product development at Pioneer Electronics and chair of the BDA promotion committee for the United States T Blu-ray and a three-disc Blu-ray edition with digital copy. Some forum users on Blu-ray.com were wholeheartedly excited about the Wall-E releases, while others were tepid on Disney charging more for a three-disc Blu-ray which only adds digital copy to the offerings of the two-disc edition. However, user Hep may have said it best: “Thank you Disney for giving us the choice of not paying for a digital copy …” Special editions of older releases are hitting DVD and Blu-ray with a vengeance this holiday season, and aside from some griping about double-dipping, forum users are enthusiastic. On Sony Pictures’ upcoming Casino Royale: Collector’s Edition (due Oct. 21 on DVD and Blu-ray), Home Theater Forum user Ray H said: “I really hoped it’d be released on Blu-ray as well because it’d be the perfect reason for me to upgrade to Blu-ray.” On Fox’s Firefly: The Complete Series, due on DVD and Blu-ray Nov. 11, HTF user Ron-P said: “A must buy for me as well. Hopefully we get Serenity (also from creator Joss Whedon) on Blu around the same time.” And on Warner’s Austin Powers Collection: Shagadelic Edition, Loaded With Extra Mojo, with all three “Austin Powers” movies, coming to Blu-ray Dec. 2, Blu-ray.com users said “yeah, baby!” “Great news!” said user alkalinesi. “Now if we can just get some Wayne’s World.” Users were split on getting to own all three films in one set, while others welcomed all three. User goodstuff’s comment was representative: “Definitely picking this up. The first is a classic, and the sequels were enjoyable enough.” Despite complaints, one thing is for certain: People are excited about these Blu-ray releases — and they’re paying attention to the details. Billy Gil’s e-mail address is bgil@questex.com “NOTHING IS COMPLETELY RECESSION PROOF, BUT MOVIES ARE ONE OF THE ULTIMATE SOCIAL EXPERIENCES.” Russ Crupnick, entertainment industry analyst for The NPD Group, on continued consumer enthusiasm for movie watching We Want to Hear From You! Please send letters to: Editor, Home Media Magazine 201 East Sandpointe Ave., Suite 500 Santa Ana, CA 92707 E-mail: HomeMediaMagazine@questex.com Fax: 714.338.6712 Include name, business address (city and state) and telephone number. Letters are subject to editing. Join Us Online: www.homemediamagazine.com Visit our Web site to participate in discussion boards and weekly polls on the latest industry issues. 12 Home Media Magazine August 31–September 6, 2008 http://www.homemediamagazine.com http://Blu-ray.com http://Blu-ray.com http://Blu-ray.com http://Blu-ray.com http://Blu-ray.com http://www.homemediamagazine.com http://questex.com
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