Home Media Magazine - November 23-29, 2008 - (Page 1)

NOVEMBER 23–29, 2008 >> HIGH-DEF BRINGING DIGITAL ENTERTAINMENT TO YOU >> ELEC TRONIC DELIVERY Sonic Solutions Acquires Old Partner CinemaNow By Erik Gruenwedel hy partner when you can be the owner? Sonic Solutions Nov. 19 said it had entered into a definitive agreement to acquire movie download pioneer and business partner CinemaNow, including its 6,000-title catalog of major studio movies, TV shows and music videos. The $3 million cash acquisition includes assimilation of about 30 CinemaNow employees and continued operations of its office in Marina Del Rey, Calif. Sonic expects to charge $1.5 million in expenses related to the acquisition. Novato, Calif.-based Sonic said it would incorporate CinemaNow into a newly created premium content group headed by Mark Ely, EVP of strategy at Sonic. BD PRICES TUMBLE DAY AFTER THANKSGIVING By Erik Gruenwedel eset with economic concerns and curtailed shopping budgets, retailers are eyeing the infamous day-afterThanksgiving Black Friday retail sales day to woo nervous consumers into stores. A survey conducted Nov. 5-11 for The National Retail Federation found that among 8,758 consumers, 30% said they would seek electronics, including Blu-ray players, and 55.6% CDs, DVDs and video BLACK&BLU: games this holiday season. “You’ll see a lot more promotional activity, not just for Black Friday but for the holidays as retailers scramble for a smaller piece of the consumer spending pie,” said Edward Woo, analyst with Wedbush Morgan Securities in Los Angeles. Wal-Mart Stores, which has championed Black Friday practically as a personal holiday, is set to sell the Magnavox Profile 1.1 Blu-ray player for $128, the lowest retail price for See BLU-RAY, Page 10 W The group’s strategy is to market the CinemaNow storefront to third-party Web sites, PCs and consumer electronics devices. “With the addition of CinemaNow, we are now putting emphasis on the distribution component of our mission statement,” Dave Habiger, president and CEO of Sonic, said in a call with investors. Habiger said CinemaNow had been generating about $1 million in quarterly revenue and had not been profitable. He said CinemaNow expects to double the service’s number of movies and TV content in 2009. Habiger said he hoped the synergy with CinemaNow would emulate for movies what Apple’s iTunes Store has had delivering digital music. “We’re trying to take a page out of See SONIC, Page 12 B INSIDE >> BD Favored A DEG study says consumers prefer Blu-ray Disc to downloads. >> ‘Bourne’ on Blu-ray The Bourne Trilogy heads to the HD format. PAGE 10 Home A R C H Media RESE MAR KET S HAR E 9% as of 11/16/08 I Blu-ray I DVD Consumers spent $174.17 million on DVDs for the week Blu-ray vs. DVD Sales* Consumers spent $20.17 million on Blu-ray Discs for the week Up 46.92% from the previous week. * Top 20 unit volume 91% Up 83.49% from the previous week. Source: Home Media Research INSIDE >> Pizza-onDemand TiVo, Domino’s team for delivery. >> Poehler and ‘Smart Girls’ Amy Poehler bows Web series. PAGE 12 Netflix in Middle of Console Competition? By Erik Gruenwedel ony has reportedly pulled hundreds of titles earmarked for distribution via online DVD rental pioneer Netflix’s broadband streaming service on Microsoft’s Xbox 360. Image Sold to Investment Group By Erik Gruenwedel SUPPLIER Image Entertainment has entered into a definitive merger agreement with private investment group Nyx Acquisitions, in a cash transaction worth about $100 million. Under the deal, which includes assumption of Image’s outstanding debt under its credit facility, replication advance obligation and S Netflix began offering its streaming service of 12,000 movies and TV episodes to the Xbox Experience Nov. 19. The Sony titles, which include Superbad, Across the Universe and See SONY, Page 24 convertible note, Image shareholders will receive $2.75 per share in cash. This amount represented nearly a 300% premium to the Chatsworth, Calif.-based distributor’s Nov. 20 closing share price of 69 cents. Image’s board unanimously approved the transaction and recommended shareholders See IMAGE, Page 24 NEWS Hastings Entertainment cites the popularity of the Summer Olympics as well as the economic downturn as reasons for a Q3 drop. PRODUCT Director Harmony Korine discusses his first feature film in eight years, Mister Lonely, on DVD from Genius Products. RESEARCH Paramount and DreamWorks’ Kung Fu Panda continues to be master of the charts, taking the No. 1 spot in DVD sales. Page 8 Page 18 Page 20

Table of Contents Feed for the Digital Edition of Home Media Magazine - November 23-29, 2008

Home Media Magazine - November 23-29, 2008 Contents News High-Def News Electronic Delivery News Commentary Reviews Pipeline Research Top 20 DVD Sellers Top 20 Rentals and Top 10 Charts Just Announced

Home Media Magazine - November 23-29, 2008

Home Media Magazine - November 23-29, 2008 - Home Media Magazine - November 23-29, 2008 (Page Cover1) Home Media Magazine - November 23-29, 2008 - Home Media Magazine - November 23-29, 2008 (Page Cover2) Home Media Magazine - November 23-29, 2008 - Home Media Magazine - November 23-29, 2008 (Page 1) Home Media Magazine - November 23-29, 2008 - Home Media Magazine - November 23-29, 2008 (Page 2) Home Media Magazine - November 23-29, 2008 - Home Media Magazine - November 23-29, 2008 (Page 3) Home Media Magazine - November 23-29, 2008 - Home Media Magazine - November 23-29, 2008 (Page 4) Home Media Magazine - November 23-29, 2008 - Contents (Page 5) Home Media Magazine - November 23-29, 2008 - Contents (Page 6) Home Media Magazine - November 23-29, 2008 - Contents (Page 7) Home Media Magazine - November 23-29, 2008 - News (Page 8) Home Media Magazine - November 23-29, 2008 - News (Page 9) Home Media Magazine - November 23-29, 2008 - High-Def News (Page 10) Home Media Magazine - November 23-29, 2008 - High-Def News (Page 11) Home Media Magazine - November 23-29, 2008 - Electronic Delivery News (Page 12) Home Media Magazine - November 23-29, 2008 - Electronic Delivery News (Page 13) Home Media Magazine - November 23-29, 2008 - Commentary (Page 14) Home Media Magazine - November 23-29, 2008 - Commentary (Page 15) Home Media Magazine - November 23-29, 2008 - Reviews (Page 16) Home Media Magazine - November 23-29, 2008 - Reviews (Page 17) Home Media Magazine - November 23-29, 2008 - Pipeline (Page 18) Home Media Magazine - November 23-29, 2008 - Pipeline (Page 19) Home Media Magazine - November 23-29, 2008 - Top 20 DVD Sellers (Page 20) Home Media Magazine - November 23-29, 2008 - Top 20 Rentals and Top 10 Charts (Page 21) Home Media Magazine - November 23-29, 2008 - Just Announced (Page 22) Home Media Magazine - November 23-29, 2008 - Just Announced (Page 23) Home Media Magazine - November 23-29, 2008 - Just Announced (Page 24) Home Media Magazine - November 23-29, 2008 - 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