Home Media Magazine - January 5, 2009 - (Page 10) HIGH-DEF PlayStation 3 Costs Sony Less By Michael Lee ony has reduced the design cost of its next-generation PlayStation 3 (PS3), with a more integrated console and some key changes in components from the previous model, according to analysis by iSuppli Corp. Based on pricing from October 2008, the latest version of the PS3 carries a combined cost of $448.73, a 35% reduction from $690.23 for the first-generation model, using pricing from mid-2007, according to iSuppli’s analysis. Previous-generation PS3s were sold at a significant loss, for which the company compensated through game title sales and royalties. “With its new-generation PS3, Sony has come close to breaking even, although it probably hasn’t quite reached that mark yet,” and Andrew Rassweiler, director and principal analyst, teardown services, for iSuppli. “With iSuppli’s estimated PS3 cost at $448.73, the product retailing in the United States at $399 and taking into account other expenses, the PS3 may be able to break even in 2009 with further hardware revisions.” ELECTRONIC DELIVERY Warner Music, Labels Eye Video Download Site By Erik Gruenwedel arner Music Group is reportedly considering creating a video download site independently or with other record labels after it failed last week to reach a new content licensing deal with YouTube, which is owned by Google. YouTube pays Warner and other labels, including EMI, Sony Music and Universal Music, a set fee each time their music videos are viewed on the social networking site, according to the Financial Times. Google is looking to reduce the fee or substitute it with adrevenue generated by the videos. The labels, in turn, want to raise the fees. Universal Music reportedly earns “tens of millions of dollars” a year in fees from YouTube. The unnamed venture would establish a site similar to Hulu.com, which NBC Universal and News Corp. bowed last year to repurpose S W TOP 20 HIGH-DEF BLU-R AY D ISC Week ended December 21, 2008 LABEL INDEX* TITLE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 The Dark Knight The Mummy: Tomb of the Dragon Emperor Mamma Mia! Wall-E Hancock Wanted Iron Man Batman Begins Planet Earth: The Complete Series Transformers The Chronicles of Narnia: Prince Caspian Step Brothers Horton Hears a Who! The Incredible Hulk Indiana Jones and the Kingdom of the Crystal … 300 Hellboy II: The Golden Army Tropic Thunder Traitor Warner 100.00 Universal 30.34 Universal 27.94 Disney 14.82 Sony Pictures 14.40 Universal 12.02 Paramount 10.71 Warner 7.24 BBC Video 7.18 Para./DreamWorks 6.92 Disney 6.17 Sony Pictures 5.80 Fox 5.39 Universal 5.30 Paramount 4.99 Warner 4.52 Universal 4.13 Para./DreamWorks 4.01 Universal 3.80 Anchor Bay 3.72 TV and filmed entertainment online. Several of the labels are also in discussions with Hulu to distribute music videos. Hulu and YouTube generated about $70 million and $100 million, respectively, in 2008 ad-revenue in the United States, according to Screen Digest. Record labels are increasingly leaning toward digital distribution as a means of returning to profitability after years of steadily declining music-CD sales. Warner said it generated $638 million in digital revenue this year, up 39% from last year. EMI and Universal reported digital revenue increases of 29% and 31%, respectively. The Recording Industry Association of America (RIAA) earlier this month abandoned its years-long practice of suing individuals who illegally download and share music on peer-to-peer networks. BRIEFS I WAL-MART DISCOUNTING IPHONES BY $2 Wal-Mart Stores Dec. 28 began selling the popular Apple iPhone 3G model for $197 — $2 below the suggested retail price. The retail behemoth sells the 16-gigabyte model also for $2 below the $299 SRP. The slim 1.1% price reduction notwithstanding, availability of the iPhone in the world’s largest retail chain allows Apple to reach a lower-income market demo that typically does not frequent its Apple stores. Best Buy is the only other non-Apple retailer authorized to sell the iPhone. Speculation prior to the launch was that Wal-Mart would bow the phones for $99, a price-point AT&T is actually offering for previously owned 8-gigabyte units returned within the 30-day trial period. All iPhone purchases require a two-year service contract with AT&T. – Erik Gruenwedel *Units sold compared to No. 1 title Source: Nielsen VideoScan First Alert data I NINTENDO EYES VIDEO DELIVERY Nintendo is reportedly in talks with Japanesebased media agency Dentsu Group to develop a platform that would distribute animated video content via the Wii video game console. Dentsu in November announced a deal with Joost.com to distribute anime videos in the United States. The collaboration between the gaming industry and video entertainment is growing, as underscored by a panel discussion on connected game consoles scheduled next month at the Consumer Electronics Show in Las Vegas. – Erik Gruenwedel TOP 20 HIGH-DEF BD MAR KE T S H AR E Percentage of Sales Per Title vs DVD Week ended December 21, 2008 LABEL PERCENT TITLE B LU-R AY D I S C C O M I NG U P STREETING Babylon A.D. Fox Street Date: 1/6 Bankok Dangerous Lionsgate Street Date: 1/6 Dexter: The Complete First Paramount/Showtime Street Date: 1/6 Disaster Movie Lionsgate Street Date: 1/6 Pineapple Express Sony Pictures Street Date: 1/6 Righteous Kill Anchor Bay Street Date: 1/6 The Wackness Sony Pictures Street Date: 1/6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Imax: Blue Planet Wyatt Earp Galapagos The Ultimate Matrix Collection The Third Man Alexander Revisited: The Final Cut The Road Warrior 16 Blocks The Usual Suspects Close Encounters of the Third Kind Thunderball Baraka Bullitt Dark City The Fifth Element Twister The Omega Man Gattaca Space Cowboys Earth: The Biography Warner Warner BBC Video Warner Image Warner Warner Warner Fox/MGM Sony Pictures Fox/MGM MPI Warner Warner Sony Pictures Warner Warner Sony Pictures Warner BBC Video 88.89% 83.62% 83.08% 81.72% 80.90% 78.71% 78.05% 76.73% 75.84% 73.86% 73.60% 72.94% 69.91% 68.47% 67.22% 67.13% 66.18% 64.88% 64.74% 63.87% Source: Nielsen VideoScan First Alert data 10 Home Media Magazine January 5–11, 2009 http://www.Hulu.com http://www.Joost.com
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