Home Media Magazine - February 23-March 1, 2009 - (Page 6) NEWS www.homemediamagazine.com Wal-Mart Defies Recession, Eyes More Entertainment Exclusives By Erik Gruenwedel al-Mart Stores Feb. 17 reported it would remain on the offensive in entertainment and electronics, citing strong fourth-quarter (ended Jan. 31) revenue growth in packaged media (including Blu-ray) and double-digit sales increases in flatpanel televisions and video game systems. The Bentonville, Ark.-based retail behemoth didn’t outline specific pending entertainment exclusives. Past proprietary music CD and DVD releases have included artists Garth Brooks, Elton John, AC/DC, Bruce Springsteen and next month’s packaged-media and digital release of Summit Home Entertainment’s Twilight. “We will continue to focus on leveraging exclusive entertainment properties to take advantage of the breadth of our assortments 30 YEARS OF NEWS FEBRUARY I 1982 Video Industry Faces Closures Back in February 1982, the country was in the midst of a severe recession, pushing the U.S. unemployment rate past 10% that year. Aside from that, the home video industry had its own, separate issues to deal with, such as controversy over the first-sale doctrine and lawsuits over the legality of home video recording. Some analysts at the time predicted that while the home video retail and rental industry would thrive, about 30% of video stores would close over the coming 12 months. Now, similarly, as the country faces another recession, some big-box retailers (Wal-Mart) and renters (Netflix) thrive, while others, such as Circuit City, face closures. “You have more and more companies either going out of business, as in the case of Circuit City, or concluding that there’s no sign of an upturn any time soon,” Nigel Gault, chief U.S. economist at IHS Global Insight, recently told the – Billy Gil Los Angeles Times. W across multiple categories,” said Eduardo Castro-Wright, president of Wal-Mart USA, in a call with investors. Wal-Mart continued to sidestep economic downturns affecting most retailers by reporting a 2.8% increase in quarterly same-store sales in locations open at least 12 months. Net sales rose 1.7%, to $108 billion, from $106.2 billion last year. Indeed, Castro-Wright said that excluding food, auto and gasoline revenue, Wal-Mart accounted for 50% of all U.S. retail growth in 2008, according to retail sales data from the U.S. Census Bureau. Net income, however, dropped 7.5%, to $3.8 billion, from $4.1 billion due primarily to litigation expenses, including a $54.2 million settlement of a seven-year class-action case that alleged current and former Wal-Mart workers were denied rest and meal breaks from 1998 to 2008. Overall (including international and Sam’s Club) net revenue for the fiscal year increased 7.2%, to $401.2 billion. U.S. same-store sales increased 3.3%. Wal-Mart ended the year with $11.6 billion in free cash. BRIEFS I DREAMWORKS ANIMATION ON NASDAQ DreamWorks Animation SKG is voluntarily moving from the New York Stock Exchange to Nasdaq, starting Feb. 26. The company sited the exchange’s trading platform and “cost-effective services” as reasons for the switch. “The Nasdaq and its listed companies represent many qualities with which DreamWorks Animation has long been associated, including industry-leading technology, innovation and creativity,” said Rich Sullivan, head of investor relations for DreamWorks Animation. Bruce Aust, EVP of Nasdaq’s Global corporate Client Group, said of DreamWorks Animation, “Their work has helped to set the standard for innovation in the entertainment industry.” In related news Microsoft co-founder Paul Allen has reportedly sold the remaining stock he owned in DreamWorks Animation, collecting $123 million. The Associated Press reported Allen had 4.6 million shares as of December 2007. – Chris Tribbey charged for items with screens, such as TVs and monitors. Consumers instantly receive a $10 Best Buy gift card in exchange for the fee. For more information, visit www. – Kyra Kudick bestbuy.com/recycling. Report: 38% of Connected Homes Get Extra Services By Chris Tribbey full 38% of American homes connected to the Internet are also subscribing to premium services, such as DVD delivery and music and gaming download services, according to a new report from The NPD Group. “You’ve got a core group of people who like having access to these services,” said NPD entertainment analyst Russ Crupnick. “At least on the DVD and game side, even in the face of this economy, there’s still room for growth.” The “Entertainment Trends in America” report found 18% of Web-enabled homes are subscribing to DVD services such as Netflix I MOVIEGUIDE HONORS ‘EXPELLED’ Expelled: No Intelligence Allowed, a documentary starring Ben Stein on intelligent design, was given two MovieGuide Awards Feb. 11 at MovieGuide’s 17th annual Faith and Values Awards Gala & Report to the Entertainment Industry. Most of the winners are now available on DVD. Expelled (on DVD from Vivendi Entertainment) beat out Iron Man, Valkyrie (not yet announced), Nim’s Island and The Longshots for the Faith & Freedom award, and the film was honored as one of the 10 best films for mature audiences, along with Changeling, Gran Torino (not yet announced), Valkyrie, Henry Poole Is Here, Iron Man, The Longshots, Marley & Me (Fox, March 31), The Family that Preys and The Day the Earth Stood Still (Fox, April 7). Meanwhile, the awards for the 10 best family films were given to Wall-E, Fireproof, The Chronicles of Narnia: Prince Caspian, Bolt (Disney, March 24), Journey to the Center of the Earth, Nim’s Island, Kung Fu Panda, The Tale of Despereaux (Universal, April 7), Madagascar: Escape 2 Africa and High School Musical 3: Senior Year. MovieGuide is a resource that aims to educate consumers on inspirational – Billy Gil and family entertainment. or Blockbuster Online, 12% are subscribing to satellite radio or a premium gaming service and 6% are subscribing to an online music service. Of those same households, 80% are subscribing to cable, satellite or fiber-optic services. “For just a few dollars a month, consumers can get a vastly expanded library of movies, music or gaming options, and that represents real value, especially as many consumers are economizing by spending more time at home,” Crupnick added. The report surveyed 11,000 consumers ages 13 and up. For more information visit www.npd.com. PEOPLE I NORTH AMERICAN MOTION PICTURES TAPS ZIMMERMAN North American Motion Pictures has named Gene Zimmerman director of sales. Zimmerman previously spent two years with MKG Financial Group as VP of private client services. Before that he served as regional sales manager for Vintage Home Entertainment, and prior to that spent 16 years at Ingram Entertainment. North American Motion Pictures is an independent production and distribution company founded in 2008. Industry veteran Barry Barnholtz heads the company. Hot Release on Disc I SHOUT! NAMES VP, DVD PRODUCTION, ACQUISITIONS Pop culture DVD purveyor Shout! Factory has appointed Cliff MacMillan VP of DVD production and acquisitions. He reports to Garson Foos, president and founding partner of Shout! Factory. “Cliff brings years of experience and a wealth of relationships in the home entertainment industry,” Foos said. “I am thrilled that he is on board to round out Shout! Factory’s executive team.” MacMillan previously served as director of acquisitions at BCI Eclipse. – Billy Gil I BEST BUY OFFERING ELECTRONICS RECYCLING Best Buy now offers its electronics recycling program at all 1,006 stores nationwide. Under the program Best Buy accepts most computer electronics, including TVs and monitors up to 32 inches, computer CPUs, VCR and DVD players, phones, and accessories such as keyboards, mice and remotes. Consumers are allowed to recycle up to two items per day, per household. A $10 recycling fee per unit will be Bob Rubin, EVP of Sony Pictures Home Entertainment, strikes a pose with Kirk Cameron, star of Fireproof, which debuted on disc Jan. 27. Home Media Magazine February 23–March 1, 2009 http://www.homemediamagazine.com http://www.bestbuy.com/recycling http://www.bestbuy.com/recycling http://www.npd.com
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