Home Media Magazine - May 4-10, 2008 - (Page 1)

MAY 4–10, 2008 BLOCKBUSTER UPS ITS GAME MOJO By Erik Gruenwedel BRINGING DIGITAL ENTERTAINMENT TO YOU Seeking to further transition itself into an entertainment convenience retailer, Blockbuster Inc. will begin increasing shelf space in 4,000 corporate stores for video game sellthrough, hardware and rental titles. Consumers for the first time will be able to purchase hardware and software for the Sony PlayStation 3, Microsoft’s Xbox 360, and Nintendo’s Wii and DS systems. Dallas-based Blockbuster sees growth potential in games as it generated $220 million in game rentals in fiscal 2007, which represented just 6.1% of overall revenue. Game sales generated $47.4 million, or 1.3% of overall revenue. To help jump-start game sales, Blockbuster is extending its $500 Sony PS3 movie-and-game promotion. The offer includes a 40GB PS3 game console, PS3/Blu-ray remote, HDMI cable, the Sony Blu-ray movie Spider-Man 3 and Paramount Pictures’ Transformers game. The package also includes a 12-week rental card, which is good for one PS3 game or Blu-ray movie per week. RETAIL “We’re committed to offering a full assortment of everything gamers want in our stores,” said Rod Murray, VP of games and merchandising at Blockbuster. Blockbuster, which has been testing new prototype concept stores in 13 Dallas locations, recently began rolling out Blu-ray displays showcasing Blu-ray movies on a large flat-screen HDTV via a PS3. BLOCKBUSTER REPORTEDLY WANTS IN ON PAY-TV DEAL By Erik Gruenwedel Blockbuster is reportedly considering investing in the recently announced premium movie channel set to launch in 2009 as part of a joint venture by Viacom (parent of Paramount Pictures), MGM and Lionsgate. See BLOCKBUSTER, Page 28 VOD >> ELECTRONIC DELIVERY >> HIGH-DEF INSIDE >> Up on Blu Best Buy, Circuit City promote BD. >> Managed Copy for BD? AACS says it could be in play for Blu-ray. PAGE 8 Apple’s iTunes Offers Sales of Movies From Most Major Studios INSIDE >> CinemaNow on the Go Web service moves into mobile. >> Mobile Woes Operators down on slow growth. PAGE 10 I Am Legend DVD sales boosted Time Warner’s first quarter. By Stephanie Prange pple Inc.’s iTunes Store last week began offering electronic sellthrough of movies from most of the major studios on the same day the titles are released on DVD. Warner Bros., Paramount Pictures, Universal Studios Home Entertainment, Sony Pictures Entertainment, Lionsgate, Image Entertainment and First Look Studios joined Disney in offering electronic purchases on iTunes. New releases cost $14.99, with most catalog titles $9.99. Pric- A ing is in line with discounted new releases on DVD and a bit above most catalog DVD pricing. “We’re thrilled to bring iTunes Store customers new films for purchase day-and-date with the DVD release,” said Eddy Cue, Apple’s VP of iTunes. “We think movie fans will love being able to buy their favorites from major and independent studios.” “Partnering with one of the most influential leaders in the digital space on this exciting movie download service is a definite game See iTUNES, Page 24 Back in Blu By Chris Tribbey SUPPLIER Paramount Home Entertainment and DreamWorks Animation SKG are back in the Blu-ray Disc fold, starting with releases of Face/Off, Next and Bee Movie May 20. Recent releases Cloverfield and There Will Be Blood will street on Blu-ray June 3, while The Spiderwick Chronicles will be Paramount’s See PARAMOUNT, Page 26 Paramount BEWKES: WARNER TO RELEASE MOST MOVIES ON CABLE VOD WITH DVD By Erik Gruenwedel The tests apparently are over for Time Warner Inc. CEO Jeff Bewkes last week said Warner Bros. will begin releasing the majority of forthcoming titles on cable video-ondemand (VOD) the same day as DVD. For some time the media giant’s cable unit, Time Warner Cable has aggressively tested — with other studios and cable operators in Denver and Pittsburgh — the SUPPLIER fiscal impact on packaged-media sales when offering new movies on VOD the same day as DVD. Bewkes said in an investor call that margins on VOD (60% to 70%) surpassed DVD rental (20% to 30%) and underscored his belief that all packaged media would ultimately move to digital distribution. “That should have positive margin implications that will boost consumption, too,” Bewkes said. “It will take time, but we are See WARNER’S BEWKES, Page 26 MAR KET S HAR E Blu-ray vs. HD DVD Sales Comparison as of 4/27/08 Home A R C H R E S E Media Blu-ray vs. DVD Sales Comparison* Week Ended 4/27 7% Week Ended 4/27 6% Consumers spent $9.20 million on Blu-ray Discs the week ended April 27, 2008 93% 94% Down 7.23% I Blu-ray I HD DVD I DVD Source: Nielsen VideoScan First Alert * Top 20 BD unit volume vs. Top 20 DVD unit volume from the previous week. Units Sold: 250,190 Source: Home Media Research NEWS DreamWorks Animation SKG reported lots of green as Shrek the Third helped the studio post increased quarterly profits. PRODUCT Warner announces an Aug. 26 release of How the West Was Won on DVD and Blu-ray Disc. RESEARCH Paramount Home Entertainment’s Cloverfield invaded the charts this week, topping both sales and rentals. Page 6 Page 7 Page 20

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Home Media Magazine - May 4-10, 2008 Contents News TV DVD Reviews Pipeline Research Top 20 DVD Sellers Top 20 Rentals and Top 10 Charts Just Announced

Home Media Magazine - May 4-10, 2008

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