Home Media Magazine - November 2-November 8, 2008 - (Page 8) NEWS BRIEFS I STUDY: MOST STORE CONTENT ON ORIGINAL DISCS A joint study commissioned by the Content Delivery and Storage Association and the Entertainment Merchants Association and conducted by The NPD Group found that most consumers store their DVDs and video games in their original packaging. The study found that 89% of DVD owners and 88% of video game owners store discs in their original cases. The study also found that 5% of DVD owners and 8% of video game owners store their discs in plastic sleeves but save the original cases. The remaining respondents said they throw away or recycle the cases. – Billy Gil DreamWorks Animation Profit Drops in Q3 By Chris Tribbey reamWorks Animation SKG announced a drop in third-quarter profits of more than 21% compared to the same period last year, as the company announced that co-founder David Geffen will leave the company’s board of directors. The company reported total revenue of $151.5 million for the three-month period ended Sept. 30 and net income of $37.4 million, compared to $160.8 million and $47 million during the same period in 2007. President and CFO Lew Coleman said Kung Fu Panda contributed more than $63 million for the quarter. DVD sales of Shrek the Third have hit more than 20 million total units shipped by the end of the quarter, he added, while Bee Movie has shipped 7.5 million. CEO Jeffrey Katzenberg added that the DVD and Blu-ray Disc releases of Kung Fu Panda on Nov. 9 and Shrek the Hall’s DVD release Nov. 4 will help push the company’s fourthquarter numbers. “Accompanying Kung Fu Panda on DVD and Blu-ray will be a brand new, 22-minute companion story … what we believe is among the most extensive bonus content ever created for a home video release,” Katzenberg said in a conference call with investors. “… We anticipate that consumers will recognize this as an exceptional added value. “Shrek the Halls … mark[s] our foray into the non- I EAA: 2008 FUNDRAISING UP The Entertainment AIDS Alliance’s events EAA Wine & Wisdom and the Visionary Awards raised nearly $113,000 this year, according to the organization. The sixth annual Wine & Wisdom raised $40,000 and broke records for attendance and on-site contributions. The charity group, which says it distributes more than 90% of funds raised, said it made its largest donation of $50,000 to Elizabeth Taylor’s Endowment Fund, which benefits the UCLA AIDS Institute’s CARE Center. The 11th annual Visionary Awards honored Target and Walt Disney Studios Home Entertainment, and raised nearly $73,000. – Billy Gil theatrical special content business. Over 21 million viewers tuned in for the television premiere of Shrek the Halls, making it one of the most watched shows of 2007.” Katzenberg praised Geffen, who helped found the company. “David’s vision for and commitment to the company has been absolutely vital throughout its 14-year history,” he said. “Without him, there would be no DreamWorks Animation.” Katzenberg also noted that DVD sales have been resilient this year during the economic downturn, saying, “… I think [they] have held up very well and we have seen good performances by the big titles. … In terms of Kung Fu Panda, we think it’s wellplaced, got a great date, it’s a strong property, [and it] seems to have a very good appeal in terms of our market research and we are cautiously optimistic.” For Blu-ray, Katzenberg said it’s “growing” for the company, but he did not expect Blu-ray sales to be significant for Kung Fu Panda compared to DVD. And in regards to DreamWorks’ split from Paramount, moving to Universal for distribution instead, Katzenberg said the decision would have no effect on DreamWorks Animation SKG, which is separate from the deal. “Paramount’s relationship for DreamWorks Animation remains very strong,” he said. “They have done an Kung Fu Panda outstanding job in servicing the distribution of our product, as I think seen by the results. … We do not anticipate any change in the relationship with Paramount.” Fallout Continues on Netflix Subscriber Concerns By Erik Gruenwedel hares of online DVD rental pioneer Netflix last week hovered near 52-week lows as investors continued to react negatively to lower subscriber estimates. In a financial call last week, Netflix co-founder and CEO Reed Hastings said year-end subs would range from 8.85 million to 9.15 million, compared to previous estimates of 9.7 million. Citing a “markedly deteriorated” S I ELITE GETS BRAIN DAMAGE Independent horror labels Elite Entertainment and Brain Damage Films have entered into an exclusive distribution deal that calls for Brain Damage to release Elite’s entire catalog and all upcoming releases in the United States and Canada. Brain Damage will immediately begin distribution of Elite’s catalog, which includes such cult classics as Night of the Living Dead. – Thomas K. Arnold economy, Hastings said new subscribers in the current quarter had already fallen 30% compared to the same period last year. “The current economic recession means continued subscriber growth … but not as fast as last year,” he said. Michael Pachter, analyst with Wedbush Morgan Securities in Los Angeles, said Netflix’s stock slide was more a result of a weak market than concerns about softer subscrib- er growth. “The market hates all stocks with consumer exposure [right now], so you’re seeing all retailers getting killed,” Pachter said. Independent analyst Rob Enderle said Netflix is tied at the hip with consumer spending, which he said for the first time in a lot of households is being prioritized. He said expenses such as food and utilities will top the list of must-have and services like Netflix will fall to- ward the bottom. “Getting new customers, particularly this quarter, will be an elusive goal, and I think the market is reflecting that,” Enderle said. Pachter said it is not just DVD that will feel the pinch. He said the video game industry, traditionally a strong market entering the holiday shopping season, is under pressure. “Nobody is doing better than [video game retailer] GameStop, and yet its stock is down to $25 from a high of $63,” Pachter said. “Netflix is suffering the same fate.” INDIE DVD PRODUCT FLOW 10-MONTH COMPARISONS: 2006-2008 Independent sources for DVDs have churned out 8,083 new units during the first 10 months of 2008. That’s off from last year by 17.3% (9,770 titles last year). As a share of the overall release pie through the first 10 months of this year (in terms of new title output, not revenue), the indies hold an 85.1% market share. The special interest category is where most of the decline can be traced, with 925 fewer releases so far this year. The lack of a big Spanish-language push in the foreignlanguage category has cut into that group by 231 titles, and music is off by 195 titles. On a bright note, indie product suppliers are in positive territory for nontheatrical documentaries (ahead by 92 units), new theatrical releases (up 21) and TV DVD multidisc sets (plus 52). — Ralph Tribbey DVD Title Release Category Special Interest Music, Opera and Stage Performances Foreign-Language Feature Films Direct-to-Video Feature Films Theatrical Catalog (pre-1997) All Other Categories Children’s Programming, Non-Feature Anime TV Series Programming: Multidisc Sets Adult-Themed, Non-Feature Documentary New Theatrical (1997-current) TV Series Programming (single-disc) Indie Sources — 10-Month Totals Studio Releases — 10-Month Totals Combined Indie Share 2006 3,461 1,699 1,084 807 635 415 378 527 247 241 208 171 192 10,065 1,628 11,693 86.1% 2007 3,431 1,312 1,124 859 667 441 408 426 252 314 184 194 158 9,770 1,542 11,312 86.4% 2008 2,506 1,117 893 839 538 356 346 304 304 284 276 215 105 8,083 1,417 9,500 85.1% I PHILIPS SPINS OUT AMBX A new technology called amBX allows for full “sensory surround” entertainment experiences in video games, movies, TV shows and other media. Licensed amBX devices let content creators add realworld effects using light, color, sound, rumble and air flow to virtual worlds. The program is a spin-off from the Philips Technology Incubator, realized through amBX UK Limited with the backing of Prime Technology Ventures, an independent pan-European venture capital firm based in the Netherlands. Neil MacDonald, CEO of amBX, said the independence from Philips will “allow us to drive amBX as an essential platform for not only PC, but for console gaming entertainment, home theater, music and even larger, bespoke installations in large scale entertainment venues.” – John Latchem SONY PICTURES INCOME UP, SONY CORP. INCOME DOWN By Erik Gruenwedel S * Results through Oct. 31 for 2006, 2007 and 2008. All Other Categories include: TV Movies, Short Subjects, Films of the Silent Era, Karaoke, Cartoon Collections, Theatrical Serials, Stage Productions (non-musical) and Silent Short Compilations. I RELEASE ACTIVITY FOR DVD Titles in Release Through Week Ended Oct. 24, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total Net DVD Titles Announced and/or In Release Through March 31, 2008 . . . . . . . . . . . . . . . . . . . . . 91,728+234 92,460+263 I RELEASE ACTIVITY FOR BLU-RAY . . . . . . . . . . . . . . . . . . . . As of Week Ended Oct. 24 Released 841 Scheduled 185 ony Pictures’ second-quarter (ended Sept. 30) operating income topped $106 million, up nearly 200% from income of $35.7 million during the prioryear period. DVD sales of 21 and Vantage Point and box office ticket sales of Step Brothers and Pineapple Express contributed to operating revenue of nearly $1.9 billion, up 3.4% from $1.8 billion last year. Despite an 86% increase in unit sales of PlayStation 3 to 2.43 million units from 1.31 million units last year, the games division posted a $379 million operating loss on revenue of $2.5 billion. Overall, parent Sony Corp. reported a 72% decline in net income to $200 million on revenue of $19.9 billion, down 0.5% from last year. Home Media Magazine November 2–8, 2008
Table of Contents Feed for the Digital Edition of Home Media Magazine - November 2-November 8, 2008 Home Media Magazine - November 2, 2008 Contents News News News TV DVD Independent Film Reviews Research Top 20 DVD Sellers Top 20 Rentals and Top 10 Charts Just Announced Christian Entertainment Review Home Media Magazine - November 2-November 8, 2008 Home Media Magazine - November 2-November 8, 2008 - Home Media Magazine - November 2, 2008 (Page Cover1) Home Media Magazine - November 2-November 8, 2008 - Home Media Magazine - November 2, 2008 (Page Cover2) Home Media Magazine - November 2-November 8, 2008 - Home Media Magazine - November 2, 2008 (Page 1) Home Media Magazine - November 2-November 8, 2008 - Home Media Magazine - November 2, 2008 (Page 2) Home Media Magazine - November 2-November 8, 2008 - Home Media Magazine - November 2, 2008 (Page 3) Home Media Magazine - November 2-November 8, 2008 - Home Media Magazine - November 2, 2008 (Page 4) Home Media Magazine - November 2-November 8, 2008 - Home Media Magazine - November 2, 2008 (Page 5) Home Media Magazine - November 2-November 8, 2008 - Home Media Magazine - November 2, 2008 (Page 6) Home Media Magazine - November 2-November 8, 2008 - Contents (Page 7) Home Media Magazine - November 2-November 8, 2008 - News (Page 8) Home Media Magazine - November 2-November 8, 2008 - News (Page 9) Home Media Magazine - November 2-November 8, 2008 - News (Page 10) Home Media Magazine - November 2-November 8, 2008 - News (Page 11) Home Media Magazine - November 2-November 8, 2008 - News (Page 12) Home Media Magazine - November 2-November 8, 2008 - TV DVD (Page 13) Home Media Magazine - November 2-November 8, 2008 - Independent Film (Page 14) Home Media Magazine - November 2-November 8, 2008 - Independent Film (Page 15) Home Media Magazine - November 2-November 8, 2008 - Reviews (Page 16) Home Media Magazine - November 2-November 8, 2008 - Reviews (Page 17) Home Media Magazine - November 2-November 8, 2008 - Reviews (Page 18) Home Media Magazine - November 2-November 8, 2008 - Reviews (Page 19) Home Media Magazine - November 2-November 8, 2008 - Top 20 DVD Sellers (Page 20) Home Media Magazine - November 2-November 8, 2008 - Top 20 DVD Sellers (Page 21) Home Media Magazine - November 2-November 8, 2008 - Top 20 Rentals and Top 10 Charts (Page 22) Home Media Magazine - November 2-November 8, 2008 - Top 20 Rentals and Top 10 Charts (Page 23) Home Media Magazine - November 2-November 8, 2008 - Top 20 Rentals and Top 10 Charts (Page 24) Home Media Magazine - November 2-November 8, 2008 - Top 20 Rentals and Top 10 Charts (Page 25) Home Media Magazine - November 2-November 8, 2008 - Just Announced (Page 26) Home Media Magazine - November 2-November 8, 2008 - Just Announced (Page 27) Home Media Magazine - November 2-November 8, 2008 - Just Announced (Page 28) Home Media Magazine - November 2-November 8, 2008 - Just Announced (Page Cover3) Home Media Magazine - November 2-November 8, 2008 - Just Announced (Page Cover4)
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