Home Media Magazine - December 7-13, 2008 - (Page 28) NEWS Black Friday, Cyber Monday Entice Shoppers Continued from page 1 www.homemediamagazine.com from 2006. Cyber Monday — championed as the Web’s answer to brick-and-mortar’s Black Friday (Nov. 28) — typically represents the first surge in online consumer holiday spending. Retailers presenting Cyber Monday specials included Borders, which offered up to 40% off DVD boxed sets and 50% off all Blu-ray titles; Netflix; Blockbuster (50% off first month of Total Access); Best Buy (50% off any Samsung upconverting DVD player with the purchase of a Samsung HDTV); and free shipping from Walmart.com. Ellen Davis, VP with the National Retail Federation (NRF), which runs CyberMonday.com, said consumer electronics and packaged media tend to be areas where consumers are very focused on price, and many use the Internet to find the best deal. “We know that both [consumer electronics and packaged media] were very strong over the weekend in stores, and we certainly presume the same would be true online,” Davis said. The top CyberMonday.com searches included Nintendo’s Wii game system, GPS devices and video games. Others included DVDs, music CDs and Blu-ray, according to Davis. “Certainly, there is a lot of consumer interest about the new format, and I believe it was one of the items consumers were searching for,” she said. “Whether or not they ended up buying it is another issue. Consumer awareness of Blu-ray is high, but taking that next step to actually buy it in this economy is another matter.” She said with Wal-Mart offering a Magnavox Blu-ray player for $128 dollars over the weekend, the bar had been lowered, in effect rendering $200 BD players yesterday’s news. “Many people who saw the really cheap Blu-ray ray promotions over the weekend couldn’t find as good deals online on Monday,” Davis said. “People are definitely looking at prices both in stores and online before making purchase decisions this year.” Citi Group analyst Kate McShane, in a research note, lamented that many of the Cyber Monday deals offered by retailers were “relatively weak.” Deep discounts on Blu-ray players and movies coupled with traditional demand for DVDs during the holidays contributed to a 17% increase in the number of shoppers hitting stores on Black Friday through Nov. 30, according to the NRF. The Washington, D.C.-based trade group said 172 million shoppers visited stores and related online sites, spending $41 billion beginning the day after Thanksgiving through the weekend, compared to 147 million shoppers last year. Shoppers spent about $372.57 over the weekend (including Thanksgiving Day), up 7.2% from $347.55 spent during the prior-year period. The NRF projects 2008 holiday sales will increase 2.2% to $470.4 billion. Interestingly, gift card purchases fell 10%, with 18.7% of shoppers buying a card, compared to 21% last year. Top-selling items included flatscreen HDTVs, GPS systems, digital frames and cameras, video game systems and Blu-ray players. About 39% of shoppers bought DVDs, CDs and video games, while nearly 36% bought consumer electronics and 28.5% bought toys. “Pent-up demand on electronics and clothing, plus unparalleled bargains … helped drive shopping this weekend,” said Tracy Mullin, president and CEO of the NRF. “Holiday sales are not expected to continue at this brisk pace, but it is encouraging that Americans seem excited to go shopping again.” Microsoft Corp. said price cuts to $199 on Black Friday helped drive sales of the Xbox 360 video game system up 25% compared to last year. Even with the promising Black Friday and Cyber Monday, analysts and retailers remain realistic in the face of a recession. Stacey Widlitz, analyst with Pali Capital, said with the real deals on Black Friday done by 6 a.m., consumers did not feel the need to be in stores. “Many of those who were in the stores later on Friday and through the weekend walked out empty handed,” Widlitz said in a note. She said MasterCard Spending Pulse reported that for the first half of November, consumer spending at specific consumer electronics stores fell 22.1%, and declined 14.3% on Black Friday and Saturday. November sales for many top retailers — with the exception of WalMart — fell 2.7% in November, according to the International Council of Shopping Centers index — reportedly the worst monthly decline since 1969, when the index began. When scouting CE departments at select Wal-Mart stores and Best Buy locations, Widlitz said consumer traffic levels appeared higher at WalMart, while sales personnel at Best Buy were more aggressive. Indeed, Wal-Mart said consumer electronics was among its top online sellers. “In one Best Buy store, sales people were roaming the floor holding up items and yelling out the prices,” she said. “‘Who needs a camera for $90? Who needs a memory card for $13?’” Horton Rings a Bell In honor of the Dec. 9 release of Dr. Seuss’ Horton Hears a Who!, 20th Century Fox Home Entertainment and the Mayor of Whoville rang the opening bell at the New York Stock Exchange Nov. 26. Pictured are (L-R) Noreen M. Culhane (EVP of global corporate client group, NYSE), and Fox’s Harry Parrish, Dorrit Ragosine, the Mayor of Whoville, Kavita Smith, Kayla Smith and Jennifer Yarrish. Sony Exec: Blu a PS3 Boost Continued from page 1 STUDIOS SHED WORKERS By Chris Tribbey T wo big studios announced massive layoffs late last week, joining the growing ranks of companies scaling back during this recession. Viacom Inc. cut about 850 positions, or 7% of the company’s workforce, while NBC Universal slashed 500 jobs, amounting to 3% of its workforce. In both cases, home entertainment divisions were effected. At Paramount Home Entertainment, layoffs include VP Chris Saito and several others; at Universal Studios Home Entertainment, the publicity department reportedly lost three of its six publicists. The Viacom cuts were made “across all divisions of the company,” according to a press release. Paramount, Nickelodeon, Comedy Central, VH1, MTV, BET, LOGO and CMT are all Viacom brands. In addi- tion to the cuts, senior level management salary increases were suspended, and programming changes and write-downs were expected to result in as much as $250 million in savings next year. Viacom saw its earnings down 37% during the third quarter, compared to the same period last year. “We are moving rapidly to adapt to the challenges presented by the current economic environment,” said Viacom President and CEO Philippe Dauman. Meanwhile, at NBC Universal the cuts were spread across the company. They reportedly included up to 50 cuts at the local media group, 70 cuts at Universal’s film studio, theme parks and distribution; and 30 cuts at NBC News. CNBC lost nearly 80 positions as well as the prime-time show “The Big Idea with Donny Deutsch.” of the PS3, Koller shared statistics that show the Blu-ray capabilities of the PS3 have Sony’s system eventually dominating Microsoft’s Xbox 360 and Nintendo’s Wii. He said the Wii is for the family gamers only, and while the Xbox 360 is matching PS3 in terms of VOD and other non-gaming media options, it’s the PS3’s Bluray features that put it over the top. “Blu-ray has really increased, in terms of purchase intent,” Koller said. “We’re fully bullish in our expectations going forward, and we’re thrilled with where we are. We’ve got a number of great years ahead of us, and Blu-ray has a lot to do with it.” The PS3’s success as a Blu-ray player cannot be understated: Seven out of eight Blu-ray players in households, Koller said, are PS3s, and according to Sony, 50% of buyers of the PS3 this year made their purchase because they have an HDTV. The PS3 is often hailed as the easiest, upgradable Blu-ray player. Where some of the first-generation standalone players will never handle BD Live features, so far the PS3 has undergone nine firmware updates, the latest (Dec. 2) adding features for the PS3 Bluetooth, in-game screenshot captures and Flash Player 9 for easier Web browsing. According to Sony, the Blu-ray and PS3 target audiences are very similar: male, late 20s, white, middle class and connected to the Internet. Four out of five PS3 owners have an HDTV. Of the PS3 owners, 90% have used it for Blu-ray movies, a third own six or more Blu-ray movies, 70% own at least three, and 51% have used the PS3 as a Web browser. Almost every user who owns a PS3, but not an HDTV, plans on getting an HDTV to enjoy everything in 1080p. And with the digital delivery options available via the PS3’s online store, Sony enjoys a relationship with every major studio but Universal (a deal is being worked with them, Koller added). That relationship extends to information sharing about the PS3 as a Blu-ray player. “They know the benefits we present,” Koller said. “They come to us, and reciprocate. They know it’s the best Blu-ray 2.0 player on the market, and still the only one that’s wireless. “They ask us continuously what our demographics are showing.” Selling nearly 17 million units as of November 2008, Sony is finding success in hard bundles (bundles of their own making in which games are included) and soft bundles through retailers (where an HDTV purchase may be paired with a PS3). After a supply shortage in July and August, Sony is prepped for a big Christmas. “Is gaming recession proof? We’re seeing a tremendous lift this holiday season,” Koller said, saying PS3 sales are up 98% year-over-year. “The PlayStation 3 is a 10-year product. Families can forego a vacation, forego a couple big dinners, and in return they get an evergreen entertainment system.” HOME MEDIA MAGAZINE (ISSN 1934-9882) is published weekly 52 times per year by Questex Media Group, Inc., 306 West Michigan Street, Suite 200, Duluth, MN 55802. 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Table of Contents Feed for the Digital Edition of Home Media Magazine - December 7-13, 2008 Home Media Magazine - December 7-13, 2008 Contents News News High-Def News Electronic Delivery News TV DVD Reviews Pipeline Research Top 20 DVD Sellers Top 20 Rentals and Top 10 Charts Just Announced Home Media Magazine - December 7-13, 2008 Home Media Magazine - December 7-13, 2008 - Home Media Magazine - December 7-13, 2008 (Page Cover1) Home Media Magazine - December 7-13, 2008 - Home Media Magazine - December 7-13, 2008 (Page Cover2) Home Media Magazine - December 7-13, 2008 - Home Media Magazine - December 7-13, 2008 (Page 1) Home Media Magazine - December 7-13, 2008 - Home Media Magazine - December 7-13, 2008 (Page 2) Home Media Magazine - December 7-13, 2008 - Contents (Page 3) Home Media Magazine - December 7-13, 2008 - Contents (Page 4) Home Media Magazine - December 7-13, 2008 - News (Page 5) Home Media Magazine - December 7-13, 2008 - News (Page 6) Home Media Magazine - December 7-13, 2008 - News (Page 7) Home Media Magazine - December 7-13, 2008 - High-Def News (Page 8) Home Media Magazine - December 7-13, 2008 - High-Def News (Page 9) Home Media Magazine - December 7-13, 2008 - Electronic Delivery News (Page 10) Home Media Magazine - December 7-13, 2008 - Electronic Delivery News (Page 11) Home Media Magazine - December 7-13, 2008 - TV DVD (Page 12) Home Media Magazine - December 7-13, 2008 - TV DVD (Page 13) Home Media Magazine - December 7-13, 2008 - Reviews (Page 14) Home Media Magazine - December 7-13, 2008 - Reviews (Page 15) Home Media Magazine - December 7-13, 2008 - Reviews (Page 16) Home Media Magazine - December 7-13, 2008 - Reviews (Page 17) Home Media Magazine - December 7-13, 2008 - Reviews (Page 18) Home Media Magazine - December 7-13, 2008 - Reviews (Page 19) Home Media Magazine - December 7-13, 2008 - Pipeline (Page 20) Home Media Magazine - December 7-13, 2008 - Pipeline (Page 21) Home Media Magazine - December 7-13, 2008 - Top 20 DVD Sellers (Page 22) Home Media Magazine - December 7-13, 2008 - Top 20 DVD Sellers (Page 23) Home Media Magazine - December 7-13, 2008 - Top 20 Rentals and Top 10 Charts (Page 24) Home Media Magazine - December 7-13, 2008 - Top 20 Rentals and Top 10 Charts (Page 25) Home Media Magazine - December 7-13, 2008 - Just Announced (Page 26) Home Media Magazine - December 7-13, 2008 - Just Announced (Page 27) Home Media Magazine - December 7-13, 2008 - Just Announced (Page 28) Home Media Magazine - December 7-13, 2008 - Just Announced (Page Cover3) Home Media Magazine - December 7-13, 2008 - Just Announced (Page Cover4)
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