Home Media Magazine - August 24, 2008 - (Page 10) NEWS BRIEFS I CIRCUIT CITY NAMES WATTLES’ EXECUTIVE AS VICE CHAIRMAN With its stock freefalling and fiscal challenges multiplying, Circuit City Aug. 19 appointed James Marcum to vice chairman. Spokesperson Bill Cimino said Marcum could help bring “fundamental change” to the company. Marcum joined Circuit City’s board in June as part of a trio of outside executives forwarded by disgruntled investor Mark Wattles in a proxy fight and settlement between Wattles Capital Management and Circuit City CEO Philip Schoonover. Wattles owns 6.5% of Circuit City’s stock. He co-founded Hollywood Video before selling the chain to Movie Gallery for $1.1 billion in 2005. Subsequently he took over control of Denver-based CE retail chain Ultimate Electronics. Marcum worked with Wattles at both Hollywood Video and Ultimate. His appointment likely means Wattles will have stronger input in Circuit City’s restructuring efforts, according to Tom Arnold, professor of finance at the University of Richmond. “If [a financial] turnaround is fast and effective, there will be an opportunity to buy out Wattles,” Arnold said. “If the turnaround is not fast and effective, it will become very difficult to support [Philip] Schoonover as CEO.” – Erik Gruenwedel www.homemediamagazine.com Hastings Posts Profit Drop But same-store DVD revenue is up 2.6% on new releases and Blu-ray By Erik Gruenwedel cause for not meeting the internal quarterly forecast. RETAIL Negative same-store book and music CD sales Rental revenue for new and used DVD movies and contributed to a drop in Hastings Entertainment second- video games increased 0.8% to $21.8 million, compared quarter income. to $21.6 million last year. Comp-store rental revenue The chain posted income of $700,000 for the quarter increased 2%. ended July 31, compared to income of $1.9 million durTotal merchandise revenue declined 0.4% to $103.8 ing the previous-year period. million from $104.2 million during the period last year. The Amarillo, Texas-based chain Music CD comp sales dropped nearly reported a slight total revenue decline 12%, compared to a 14.2% decline to $125.6 million for the quarter from during the same period last year. $125.9 million during the same peBook sales decreased 1.1% due to an riod the previous year. unfavorable comparison to last year’s Same-store DVD revenue increased quarter, which included Harry Potter 2.6% due to new releases and Bluand the Deathly Hallows. ray Disc, compared to an increase of “Our comp-store revenues showed 10.6% last year. Video game comp National Treasure: Book of Secrets healthy growth during the second sales rose 4.6%, compared to an was a top seller for Hastings in Q2. quarter, in light of a challenging retail increase of 14% last year. environment,” CEO John MarmadTop DVD sellers include National Treasure: Book of uke said in a statement. “Electronics, trends, consumSecrets, The Bucket List, P.S. I Love You, Jumper and ables, café, video games and movies all showed strong 10,000 B.C. growth.” Based on the poor economy, Hastings implemented a Hastings shuttered one store location in Galveston, price reduction on previously viewed DVDs resulting in Texas, which resulted in a $400,000 drop in revenue $200,000 less revenue than the same period last year, an and contributed to about $200,000 in pre-tax costs. unplanned move company executives said was the primary Hastings operates 152 stores throughout the Southwest. Netflix Delivery Back on Track By Erik Gruenwedel RETAIL Netflix was back up to full speed Aug. 18, shipping and receiving movie rentals to its 8.4 million subscribers following a technological mishap that suspended service for much of the preceding week. Reports suggested a database upgrade malfunctioned, resulting in the Los Gatos, Calif.-based service flying blind, unable to keep tabs on incoming returns and outgoing deliveries from its 55 distribution centers nationwide. Spokesperson Steven Swasey refused to specify the reason for last week’s meltdown, but said the service had been fully operational since late Aug. 15. He said Netflix was making sure that such an occurrence — the second major disruption this year — wouldn’t happen again. “We’ve got a good bead on it, but we’re obviously not discussing it externally,” Swasey said. “We still have some things to work out, but we know what is going on.” The service automatically credited subscribers 15% towards next month’s bill. Morningstar Moves Into U.S. By Thomas K. Arnold SUPPLIER Morningstar Entertainment, an independent Canadian home entertainment distribution company, is setting its sights on the United States. The company this fall will begin distributing DVD product domestically, starting with two releases: the critically hailed documentary Garbage Warrior and The Smurfs and the Magic Flute, the latter arriving in stores Oct. 7 in time for the Smurfs’ 50th anniversary. In addition, Morningstar has just I REDBOX AT NASHVILLE AIRPORT Those coming in and out of the Nashville International Airport are the first airline travelers with a Redbox available to them. A Redbox kiosk is available before the security screening at the airport, while another awaits inside the terminals. – Chris Tribbey closed deals with Shoreline Entertainment, Maitland Primrose Group, and Ostrow & Co. on 18 titles for U.S. distribution, including Gordon Pinsent’s Heyday, Little Big Top and Fat Head, the latter a response documentary to Super Size Me. The company now has more than 50 titles pegged for U.S. DVD distribution and plans on rolling out 10 releases each month, with three or four that cater specifically to the rental market. “Having firmly established ourselves in the Canadian market, we have now set our sights on the larger-scale U.S. home entertainment marketplace,” said Jason Moring, Morningstar’s VP of sales and acquisitions. “We have a steady stable of product to release straight through summer 2009.” Founded in 1991, Morningstar has represented more than 30 entertainment content producers, including the Canadian Broadcasting Corp., BBC, Mackinac Media, Facets Multimedia, The World Poker Tour, The Player’s Network, FilmsWeLike and Cine Tele Action. NPD: MOVIE VIEWING TRUMPS SLOW ECONOMY By Erik Gruenwedel I FOX/MGM DVDS GO PINK FOR THE CURE For the second year, 20th Century Fox Home Entertainment and MGM Home Entertainment have teamed with Susan G. Komen for the Cure on a DVDs for the Cure promotion. Coming just before National Breast Cancer Awareness Month in October, 15 romantic comedies will street Sept. 23 at $14.98 each, in special pink packaging. The studios will donate 50 cents of each unit sale to the organization, with a minimum total donation of $100,000. Five titles join last year’s selection: Edward Scissorhands, The Princess Bride, Just My Luck, Little Miss Sunshine and When Harry Met Sally. – Billy Gil There are three ways to build the postLabor Day parade of new theatrical hits. First and foremost is the arrival of the summer crop of new hit films on DVD and Blu-ray. The second group comes from the previous year holdovers (usually Christmasthemed films held for release or Imax offerings), while the third crop comes from moving post-Labor Day theatrical releases quickly to market. With two weeks still to go this summer, 2008 already has matched last summer’s output. The post-Labor Day slate of hits looks solid this year. — Ralph Tribbey NEW THEATRICAL ON DVD COMPARISONS POST-LABOR DAY: 2005-2008 Total Box Hold Box Post Box Net Adjusted Year Hits Office Overs Office Summer Office Summer Box Office 2005 38 $3,528,839,826 2 $236,455,029 1 $25,335,935 35 $3,267,048,862 2006 36 $3,607,281,889 0 1 $72,755,517 35 $3,534,526,372 2007 37 $4,211,216,579 4 $188,211,995 2 $84,227,793 31 $3,938,776,791 2008 33 $3,878,346,929 2 $121,122,801 31 $3,757,224,128 * 2008 includes films scheduled for release, plus films likely to be released before Dec. 31, 2008 on DVD and Blu-ray. Box office for 2008 as of Aug. 18. Hits defined as films have a domestic box office take of $25 million or more. Holdovers are films of a seasonal nature. Post-summer are films that open theatrically after Labor Day and arrive on DVD or Blu-ray prior to Dec. 31 of each year. I RELEASE ACTIVITY FOR DVD Titles in Release Through Week Ended Aug. 15, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . Total Net DVD Titles Announced and/or In Release Through Dec. 31, 2008 . . . . . . . . . . . . . . . . . . . . . . . 88,878+271 89,764+289 I RELEASE ACTIVITY FOR BLU-RAY . . . . . . . . . . . . . . . . . . . . As of Week Ended Aug. 15 Released 656 Scheduled 187 The U.S. economy may be in a recession, but that won’t stop avid moviegoers, 80% of whom said they would go to the theater (four or more times over a 90-day period) at least as often as they did last year, according to a new report. Port Washington, N.Y.-based research firm The NPD Group also reported frequent moviegoers are 20% more likely than nonfrequent moviegoers to purchase DVDs of recent theatrical releases; 60% more likely to stream a movie online and 40% more likely to purchase a movie as a digital download. The data was based on a sample of more than 11,000 consumers. The study also found that among infrequent moviegoers (once or twice during a threemonth period), 57% plan to maintain or increase their theatrical attendance this year. Among theatrical draws, respondents cited the social experience of going with family, friends or significant others (73%), while another 48% indicated the appeal of the large screen and sound system. “Nothing is completely recession-proof, but movies are one of the ultimate social experiences,” said Russ Crupnick, entertainment industry analyst for The NPD Group. Crupnick said that if movie ticket prices continue to escalate, the social moviegoing experience would move into the home. RESEARCH Home Media Magazine August 24–30, 2008 http://www.homemediamagazine.com
Table of Contents Feed for the Digital Edition of Home Media Magazine - August 24, 2008 Home Media Magazine - August 24, 2008 Contents News High-Def News Electronic Delivery News TV DVD Fourth Quarter/Holiday Reviews Pipeline Research Top 20 DVD Sellers Top 20 Rentals and Top 10 Charts Just Announced Home Media Magazine - August 24, 2008 Home Media Magazine - August 24, 2008 - Home Media Magazine - August 24, 2008 (Page Cover1) Home Media Magazine - August 24, 2008 - Home Media Magazine - August 24, 2008 (Page Cover2) Home Media Magazine - August 24, 2008 - Home Media Magazine - August 24, 2008 (Page 1) Home Media Magazine - August 24, 2008 - Home Media Magazine - August 24, 2008 (Page 2) Home Media Magazine - August 24, 2008 - Home Media Magazine - August 24, 2008 (Page 3) Home Media Magazine - August 24, 2008 - Home Media Magazine - August 24, 2008 (Page 4) Home Media Magazine - August 24, 2008 - Home Media Magazine - August 24, 2008 (Page 5) Home Media Magazine - August 24, 2008 - Home Media Magazine - August 24, 2008 (Page 6) Home Media Magazine - August 24, 2008 - Contents (Page 7) Home Media Magazine - August 24, 2008 - Contents (Page 8) Home Media Magazine - August 24, 2008 - Contents (Page 9) Home Media Magazine - August 24, 2008 - News (Page 10) Home Media Magazine - August 24, 2008 - News (Page 11) Home Media Magazine - August 24, 2008 - News (Page 12) Home Media Magazine - August 24, 2008 - News (Page 13) Home Media Magazine - August 24, 2008 - High-Def News (Page 14) Home Media Magazine - August 24, 2008 - High-Def News (Page 15) Home Media Magazine - August 24, 2008 - Electronic Delivery News (Page 16) Home Media Magazine - August 24, 2008 - TV DVD (Page 17) Home Media Magazine - August 24, 2008 - Fourth Quarter/Holiday (Page 18) Home Media Magazine - August 24, 2008 - Fourth Quarter/Holiday (Page 19) Home Media Magazine - August 24, 2008 - Fourth Quarter/Holiday (Page 20) Home Media Magazine - August 24, 2008 - Fourth Quarter/Holiday (Page 21) Home Media Magazine - August 24, 2008 - Reviews (Page 22) Home Media Magazine - August 24, 2008 - Reviews (Page 23) Home Media Magazine - August 24, 2008 - Reviews (Page 24) Home Media Magazine - August 24, 2008 - Reviews (Page 25) Home Media Magazine - August 24, 2008 - Reviews (Page 26) Home Media Magazine - August 24, 2008 - Reviews (Page 27) Home Media Magazine - August 24, 2008 - Pipeline (Page 28) Home Media Magazine - August 24, 2008 - Pipeline (Page 29) Home Media Magazine - August 24, 2008 - Top 20 DVD Sellers (Page 30) Home Media Magazine - August 24, 2008 - Top 20 Rentals and Top 10 Charts (Page 31) Home Media Magazine - August 24, 2008 - Top 20 Rentals and Top 10 Charts (Page 32) Home Media Magazine - August 24, 2008 - Top 20 Rentals and Top 10 Charts (Page 33) Home Media Magazine - August 24, 2008 - Just Announced (Page 34) Home Media Magazine - August 24, 2008 - Just Announced (Page 35) Home Media Magazine - August 24, 2008 - Just Announced (Page 36) Home Media Magazine - August 24, 2008 - Just Announced (Page Cover3) Home Media Magazine - August 24, 2008 - Just Announced (Page Cover4)
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