Home Media Magazine - January 5, 2009 - (Page 3) JANUARY 5–11, 2009 >> HIGH-DEF INSIDE PS3 Components Cost Less The PlayStation 3 costs Sony less to produce than it did last year, according to analysis by iSuppli. PAGE 10 Fox releases Babylon A.D. Jan. 6. w w w.HomeMediaMagazine.com Holiday Sales No Gift to Retailers By Billy Gil MasterCard SpendingPulse report indicates 2008 holiday sales fell by 2% to 4% compared to the 2007 holiday season, excluding gas. It was the worst holiday shopping drop in nearly 40 years, according to multiple sources. Consumer electronics, in particular, took a big hit. The report, which tracked retail and service sales nationally for the period between Nov. 1 and Dec. 24, 2008, showed sales of electronics and appliances declining more than 26% compared to the previous year. “Sales above $1,000 have been a consistent drag on this sector throughout the season,” said Michael McNamara, VP of research and analysis for SpendingPulse, in a statement. A snowstorm that hit the Midwest and Northeast the weekend before Christmas compounded the drop, keeping people out of stores. Blues and Blu at CES By Erik Gruenwedel he deepening recession and gloomy consumer confidence underpin a consumer electronics industry that is suffering a downturn. The Consumer Electronics Association (CEA), organizer of the 2009 InterPREVIEW national Consumer Electronics Show, Jan. 8 to 11 in Las Vegas, attempted to put a positive spin on December spending, citing a 7% decline in consumers’ confidence in CE and technology compared to a 13% decline the previous year. “Although we have seen consumer confidence dip lower in the past two years, we were hoping that confidence would rebound or, at the very least, remain flat during one of the busiest shopping seasons of the year,” said Claudia Haase, director of research with CNET, which coordinated the index. “Unfortunately, we are also seeing a See CES, Page 20 A “A difficult economic environment combined with unfavorable weather during the last week of shopping made 2008 one of the most challenging holiday shopping seasons in decades,” McNamara said. Other reports confirmed the findings, with the International Council of Shopping Centers (ICSC) and Goldman Sachs Group Inc. saying Dec. 30 that sales at stores open at least a year fell 1.8% from last year in the seven days through Dec. 27, making for the largest year-over-year drop in sales since February 2003. The report also found sales compared to the previous week fell 1.5%. “The 2008 recession, widespread heavy discounting and adverse pre-holiday weather all coalesced to produce the weakest holiday season since at least 1970,” said Michael P. Niemira, ICSC’s chief economist and director of See HOLIDAY, Page 20 T >> ELECTRONIC DELIVERY Home A R C H Media RESE MAR KET S HAR E 11% as of 12/21/08 I Blu-ray I DVD LG EXPANDS STREAMING FOR BLU-RAY PLAYER By Erik Gruenwedel L INSIDE >> Video site for WMG? Warner considers a download site. PAGE 10 Consumers spent $349.84 million on DVDs for the week Blu-ray vs. DVD Sales* Consumers spent $46.51 million on Blu-ray Discs for the week NETFLIX OFFERS FREE RENTAL By Erik Gruenwedel G Electronics inked new streaming deals with CinemaNow and YouTube, expanding its entertainment content beyond Netflix’s library of 12,000 standard and high-definition titles. See LG, Page 20 89% Down 24.2% from the previous week. * Top 20 unit volume Note: Due to early deadlines, data is a week behind. Down 23.48% from the previous week. Source: Home Media Research Netflix said it would begin sending its 8.7 million subscribers free titles from their rental queues if a previous title is delayed due to being shipped from a more distant distribution center. See NETFLIX, Page 20 RETAIL NEWS Netflix’s stock is upgraded from “hold” to “buy” after the online rentailer reported growth in its most recent financial quarter. RESEARCH Universal’s ABBA musical Mamma Mia! was gold on the home video sales chart, while its most recent “Mummy” movie topped rentals. PRODUCT Actress Eliza Dushku and writer/ producer Tom Malloy discuss making The Alphabet Killer, out Jan. 6 from Anchor Bay. Page 8 Page 16 Page 18 http://www.HomeMediaMagazine.com
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