Home Media Magazine - June 15, 2008 - (Page 28) NEWS www.homemediamagazine.com The COO believed incorporating so-called “dynamic” ads in VOD programming, including movies, would mitigate potential fallout from competing DVD sales. “We still see VOD as an opportunity,” he said. “It’s where we’re going in regards to interactive advertising and targeted advertising.” Hobbs also said Time Warner Cable would double the number of HD channels to 100 in No. 1 market New York by the end of the year. COO: Time Warner Cable Upping VOD By Erik Gruenwedel VOD With 30% of its first-quarter growth coming from video, Time Warner Cable Inc. is banking that video-on-demand (VOD) will help generate more than incremental revenue. Speaking at last week’s Deutsche Bank Media & Telecommunications Conference in New York, COO Landel Hobbs said the cable company continues to aggressively seek nonsubscribers for its video offerings. “It’s all about getting our RGU (revenue generating units) yield up,” Hobbs said. The cable division, which last month was spun off by corporate parent Time Warner Inc., has 14.7 million subscribers, of which 1.4 million do not watch video and 1.2 million are high-speed data only. In the last quarter, Time Warner cable grew revenue 8% ($309 million) to $4.2 billion, which included 55,000 and 261,000 new basic video and digital video subscribers, respectively. Hobbs said the company’s Start Over service, which allows viewers to watch programming in mid-stream, coupled with the placement of targeted ads that cannot be fast-forwarded, has made VOD an evolving technology. He said the service, which is still being rolled out in select markets, has achieved 93% consumer satisfaction. Time Warner Cable has agreements with 122 channels and features 22,000 programs and movies. The cable division had 130 million (mostly free) streams in March. Hobbs said the pay- per-view movie business is growing 25% to 30% quarterly. “We are actually making some money on it,” he said. “Customers like it and are becoming accustomed to it.” Hobbs said Time Warner Cable was continuing to phase in day-and-date new movies with Warner Home Video, a strategy that would evolve as the economics change. Warner Screens ‘Otis’ CLASSIFIED SHOWCASE B R O W S E R D I S P L AY CO M P U T E R S O F T WA R E Cast and crew of Otis joined Warner Home Video executives for a special screening of the film in Hollywood, Calif. (L-R): Actress Illeana Douglas, Warner’s Jennifer Gonzalez, actors Jared Kusnitz and Bostin Christopher, Warner’s Ronnee Sass, director Tony Krantz and actress Ashley Johnson were among those in attendance at the screening held at the American Cinematheque at the Egyptian Theater. Warner Home Video debuted Otis on DVD June 10. B RIEFS I DOLBY OFFERS GUIDE ON HD Dolby Laboratories is making available a guide to connecting to high-definition services, called “HD Essentials: Get in the Middle of the HD Action.” It’s available at www.dolby.com/hdguide. The guide is meant to help consumers with buying decisions, such as selecting the right speakers for a surround sound system within a budget. — Billy Gil I ELECTRONICS, MEDIA COMPANIES SURGE ON MAY RETAIL SALES Shares of CE retailers Circuit City Stores, Best Buy Co. and select media companies, including The Walt Disney Co. and Time Warner Inc., rose slightly June 12 after the federal government reported a 1% increase in May retail sales. Experts contend retail trends often indicate commensurate spending on entertainment. Matthew Fassler, analyst with Goldman Sachs, said in a research note that Best Buy sales increased 3.7% in May, the largest increase since November 2007. — Erik Gruenwedel BUSINESS FOR SALE I FCC SEEKS COMMENT ON HD-BLOCKING PETITION The Federal Communications Commission (FCC) is seeking public comment on a Motion Picture Association of America (MPAA) petition that could result in new, high-definition theatrical releases on TV before DVD and Blu-ray Disc street dates. The petition asks the FCC to change current rules in order to allow the studios to block certain films from being recorded on DVRs. The move would also keep the films from being viewed on some HDTVs by blocking analog outputs to digital TVs and DVRs. HDTVs with HDMI connections wouldn’t be affected. The FCC rules, made in 2003, prohibit the use of “selectable output controls,” which embeds video with copy protection data that prevents it from being recorded by DVRs, or degrades the picture if it’s viewed via an analog output. Copy protection used in digital media doesn’t carry over when the video is converted for analog consumption. The public has until June 25 to comment on the proposal. — Chris Tribbey I MTI USES SHELF TALKERS MTI Home Video is having its retail partners use “shelf talkers” — MTI-specific cards pointing to DVDs — to showcase product. Dozens of MTI’s accounts have signed on, the company said. Larry Brahms, president of MTI Home Video, said the retailer response has been “phenomenal.” The first titles included in the marketing plan are Last Request, Valentina’s Tango and The Planet. — Chris Tribbey USED TAPES & DVDS CLASSIFIED ADVERTISING FOR ADDITIONAL INFORMATION CONTACT: Kurt Wohlman (714) 338-6749 kwohlman@questex.com www.homemediamagazine.com BUSINESS SERVICES REDUCING YOUR INVENTORY? We Buy VHS, and also DVD & Video Games I GLOBAL MEDIA AWARDS AT CES The Consumer Electronics Association (CES) and the National Academy of Television Arts and Sciences (NATAS) will partner to deliver a Global Media Awards program at the 2009 International CES event in Las Vegas Jan. 8-11. For information about the awards contact Paul Pillitteri at ppillitteri@natasonline.com. — Chris Tribbey xtreme deo E 733-7370 (203) Vi 28 Home Media Magazine June 15–21, 2008 http://www.homemediamagazine.com http://www.rapidrental.com http://www.dolby.com/hdguide http://www.homemediamagazine.com http://www.corporate.com
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