Home Media Magazine - February 2, 2009 - (Page 10) HIGH-DEF www.homemediamagazine.com Blu-ray Projected to Surpass Digital Dollars By Erik Gruenwedel he transition from packaged media to digital distribution for film and TV shows may be further away than many think. Sales of Blu-ray Disc titles are projected to increase 150% to $2.9 billion this year from $1.1 billion in 2008, according to research firm Media Control GfK International. That’s nearly twice the $1.5 billion generated by digital last year, which included VOD and broadband. Digital distribution is expected to top $3.5 billion and represent 15% of the home entertainment pie by 2013. Michael Paxton, analyst with In-Stat in Scottsdale, Ariz., said wider proliferation of movie streaming and downloading is hamstrung by broadband limitations in households. “The bandwidth required to stream any type of HD video is way beyond what most households have,” Paxton said. He said the scuttlebutt for years suggested downloads and streaming would replace packaged media. “The convenience factor is still not there for streaming media, unless you are watching on a laptop and it is the only option you have,” Paxton said. “The packaged media business model is one that the consumer is very comfortable with.” That said, Paxton doubts Blu-ray will replace DVD, but he also doesn’t Report: HDTV Owners, Viewing Not in Sync By Erik Gruenwedel lobal proliferation of flatpanel HDTVs in households does not reflect corresponding viewing of HD programming, according to a new report. While there were 39 million HDTV households in the United States at the end of 2008, up 24% from 29 million in 2007, and the number of people receiving and watching HD programming increased 40% in 2008, there were still 17 million households not watching HD programming, according to a report from Scottsdale, Ariz.-based research firm In-Stat. Specifically, In-Stat analyst Mike Paxton said the growth rate of HD program viewing should have been proportionally greater. Paxton said recent data suggests HDTV consumers consider HD programming too expensive and limited in selection, and that with the current economic recession, consumers are questioning paying the monthly premiums associated T believe it will suffer the fate of Laserdisc. Blu-ray is projected to reach 11% of packaged-media penetration by the end of the year, up from 4% in 2008, according the Media Control. Other analysts (and digital proponents) questioned Blu-ray’s perceived strength, while others said the format’s premium pricing inflated revenue. “They have to be leaving out the cable and satellite industries to get to that kind of conclusion,” said independent analyst Rob Enderle. “We are likely to see a number of reports like this as the Blu-ray marketing organization works to counter the perception that BD simply ramped too late and still hasn’t hit critical price points.” See BLU-RAY, Page 25 G Netflix Heralds Its 700K Blu-ray Subs By Erik Gruenwedel etflix’s decision last year to add a $1 surcharge to monthly subscribers of Blu-ray Disc movies continues to pay dividends. The Los Gatos, Calif.-based online DVD rental pioneer said it ended the fourth quarter (ended Dec. 31) with 700,000 specific Bluray subscribers — up 200,000 from its year-end goal. CEO Reed Hastings, in a call with investors, said Netflix remained committed to the next-generation format and was “on par” in terms of where the trends have been over the past couple of years. N At first skeptical of Blu-ray’s market durability, Hastings said the format has proven to be stronger than DVD during its initial rollout. The executive said the service has applied lessons learned from the early days of DVD to Blu-ray distribution. “We’re much smarter now, so we’re further down that [learning] curve than we were in DVD at this point in its life,” Hastings said. “If Blu-ray player prices continue to fall as expected, driven by next-generation chip designs, then wide-spread adoption becomes increasingly likely and it extends the life of disc-based viewing.” with renting an HD set-top box or paying for HD programming. Paxton said cable companies are aggressively marketing HD programming to consumers. “They are spending more time and money telling people about HD programming and the value associated with it,” Paxton said. The analyst said cable operators such as Comcast have actively been promoting HD programming via HDTV displays at Best Buy and other CE retailers. Historical reasons included a lack of understanding among consumers that simply owning an HDTV did not automatically result in receiving HD programming. The report found that the United States and Japan dominate global HDTV penetration, with European HDTV penetration expected to reach 10 million households by 2011. Cable and satellite providers represent 80% of all HD programming, while broadcast TV and Telco services account for the remaining 20%. BRIEF I SONY PICTURES SCRAPS COMMEMORATIVE BOOK Sony Pictures has reduced the price for the Blu-ray disc of Ghostbusters due to a change in packaging plans. The disc, released in celebration of the 25th anniversary of the film, was originally priced at $38.96 and was going to be packaged with a 32-page scrapbook. However, the scrapbook is no longer going to be produced, so the price of the Blu-ray disc has been reduced to $28.95. – Kyra Kudick TOP 20 HIGH-DEF BLU-R AY D ISC Week ended January 25, 2009 LABEL INDEX* TOP 20 HIGH-DEF B D TI TL E S HA R E Percentage of Sales Per Title vs DVD* Week ended January 25, 2009 LABEL PERCENT TITLE TITLE B LU-R AY D I S C C O M I NG U P STREETING The Boondock Saints Fox/MGM Street Date: 2/10 Donnie Darko Fox Street Date: 2/10 Frozen River Sony Pictures Street Date: 2/10 My Name Is Bruce Image Street Date: 2/10 Nights in Rodanthe Warner Street Date: 2/10 The Rundown Universal Street Date: 2/10 W. Lionsgate Street Date: 2/10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Max Payne The Dark Knight Iron Man Saw V Transformers King Kong Band of Brothers Eagle Eye Pineapple Express Wanted Indiana Jones and the Kingdom of the … Tropic Thunder Righteous Kill Planet Earth: The Complete Series Appaloosa The Incredible Hulk The Mummy: Tomb of the Dragon Emperor Wall-E Step Brothers 300 Fox 100.00 Warner 51.94 Paramount 50.76 Lionsgate 42.36 Para./DreamWorks 31.17 Universal 27.03 Warner 25.03 Para./DreamWorks 22.96 Sony Pictures 21.21 Universal 17.95 Paramount 17.50 Para./DreamWorks 13.15 Anchor Bay 13.10 BBC Video 11.95 Warner 11.71 Universal 11.52 Universal 10.78 Disney 10.66 Sony Pictures 10.29 Warner 10.10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 King Kong Band of Brothers Iron Man Transformers Indiana Jones and the Kingdom of the … The Incredible Hulk Hellboy II: The Golden Army The Dark Knight Tropic Thunder Wanted Eagle Eye Traitor The Mummy: Tomb of the Dragon Emperor Babylon A.D. Death Race Max Payne Hancock Righteous Kill Bangkok Dangerous Step Brothers Universal 89.62% Warner 85.66% Paramount 67.82% Para./DreamWorks 66.76% Paramount 53.78% Universal 45.34% Universal 30.67% Warner 30.48% Para./DreamWorks 30.07% Universal 28.49% Para./DreamWorks 23.60% Anchor Bay 22.69% Universal 22.10% Fox 21.25% Universal 21.24% Fox 20.79% Sony Pictures 17.25% Anchor Bay 16.57% Lionsgate 16.11% Sony Pictures 15.83% *Units sold compared to No. 1 title Source: Nielsen VideoScan First Alert data *Among Top 50 Blu-ray Sellers Source: Nielsen VideoScan First Alert data 10 Home Media Magazine February 2–8, 2009 http://www.homemediamagazine.com
Table of Contents Feed for the Digital Edition of Home Media Magazine - February 2, 2009 Contents News TV DVD Health/Fitness Reviews Pipeline Research Top 20 Sellers Top 20 Rentals and Top 10 Charts Just Announced Home Media Magazine - February 2, 2009 Home Media Magazine - February 2, 2009 - (Page Cover1) Home Media Magazine - February 2, 2009 - (Page Cover2) Home Media Magazine - February 2, 2009 - (Page 1) Home Media Magazine - February 2, 2009 - (Page 2) Home Media Magazine - February 2, 2009 - (Page 3) Home Media Magazine - February 2, 2009 - (Page 4) Home Media Magazine - February 2, 2009 - Contents (Page 5) Home Media Magazine - February 2, 2009 - News (Page 6) Home Media Magazine - February 2, 2009 - News (Page 7) Home Media Magazine - February 2, 2009 - News (Page 8) Home Media Magazine - February 2, 2009 - News (Page 9) Home Media Magazine - February 2, 2009 - News (Page 10) Home Media Magazine - February 2, 2009 - News (Page 11) Home Media Magazine - February 2, 2009 - TV DVD (Page 12) Home Media Magazine - February 2, 2009 - TV DVD (Page 13) Home Media Magazine - February 2, 2009 - Health/Fitness (Page 14) Home Media Magazine - February 2, 2009 - Health/Fitness (Page 15) Home Media Magazine - February 2, 2009 - Reviews (Page 16) Home Media Magazine - February 2, 2009 - Reviews (Page 17) Home Media Magazine - February 2, 2009 - Reviews (Page 18) Home Media Magazine - February 2, 2009 - Reviews (Page 19) Home Media Magazine - February 2, 2009 - Pipeline (Page 20) Home Media Magazine - February 2, 2009 - Pipeline (Page 21) Home Media Magazine - February 2, 2009 - Top 20 Sellers (Page 22) Home Media Magazine - February 2, 2009 - Top 20 Sellers (Page 23) Home Media Magazine - February 2, 2009 - Top 20 Rentals and Top 10 Charts (Page 24) Home Media Magazine - February 2, 2009 - Top 20 Rentals and Top 10 Charts (Page 25) Home Media Magazine - February 2, 2009 - Just Announced (Page 26) Home Media Magazine - February 2, 2009 - Just Announced (Page 27) Home Media Magazine - February 2, 2009 - Just Announced (Page 28) Home Media Magazine - February 2, 2009 - Just Announced (Page Cover3) Home Media Magazine - February 2, 2009 - Just Announced (Page Cover4)
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