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Weak home video spending blamed on weak movies

Written by Rich Fiscus (Google+) @ 16 Jul 2007 7:22 User comments (19)

Weak home video spending blamed on weak movies Home video executives blame a nearly 5% drop in consumer spending on home video on a lack of interest in new theatrical DVD releases. Rental spending was down 3.3% from last year while sales dropped 6.5%.
The cumulative box-office of DVDs released in the first half of 2007 was off 5%, and there were fewer releases with a box-office topping $100 million. According to 20th Century Fox Home Entertainment president Mike Dunn, “Those big $100 million movies lift all boats in the category.”.

With box-office on summer releases due on DVD in the second half already up 5% over last year, home video execs are cautiously optimistic that consumer spending will end up flat in 2007, with some even predicting a small increase.

“Everybody is expecting the biggest fourth quarter ever given the strength of movies coming out this summer,” said Matt Lasorsa, New Line Home Entertainment executive VP of marketing.

Despite the growing number of Hi-Def televisions, players, and movie releases DVD sales continue to increase and dominate the market. According to Sony Pictures Home Entertainment, U.S. households went from buying 12.5 discs on average four years ago to 14.4 last year.

“In consumers' minds, DVD is still really primary,” said Lori MacPherson, Disney general manager of North America. “There’s a lot of news about digital and Blu-ray, and that’s exciting. For the mainstream consumer, they’re still thinking about their DVD library, though a lot of them are dabbling in new formats.”

Blu-ray Disc and HD DVD sales, meanwhile, overtook VHS, which has dragged down the business in previous years. Most studios plan to release movies day-and-date on DVD and one or both of the high-def formats in the fourth quarter. DreamWorks and New Line are the only studios yet to announce high-def releases.

Source: Video Business

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19 user comments

116.7.2007 7:54

Its going to take Blu-Ray or HD-DVD at lease two more year because it took dvd 3 years & a huge price drop to get that market going but it would help to have winner to this format war.But i could see DVD & either HD format making revenue together without HD format taking over the DVD market.

216.7.2007 8:15

Quote:
“In consumers' minds, DVD is still really primary,” said Lori MacPherson, Disney general manager of North America. “There’s a lot of news about digital and Blu-ray, and that’s exciting. For the mainstream consumer, they’re still thinking about their DVD library, though a lot of them are dabbling in new formats.”
Maybe not. Probably a combination of 2 things - HD and lackluster titles. I stopped buying DVD's just because I know exactly when I'm getting a HDTV, so there's no point in investing in a format that will be dead in my household. I haven't rented anything either, because I haven't seen anything worth renting. And I'll usually borrow a movie from a friend to watch.

316.7.2007 8:49
vinny13
Inactive

Rental spending is down and everything because all the movies made this year so far have been pure CRAP.

416.7.2007 9:00

The lack of good movies has been apparent in the past 4 years. Once and a while you get one of those thought provoking all around great movies. All we are flooded with is sequals seaquals and sequals, all in that order. And the remakes? Kmon. Stop making us watch the same stuff over and over again. Making us watch? So many commercials make you feel like you've seen it before.

Everyone should be watching independent films and show these movie monopolies we are sick of seeing their lack of talent.

516.7.2007 9:08

Quote:
Blu-ray Disc and HD DVD sales, meanwhile, overtook VHS,
OMG party time *pops bottle*

616.7.2007 9:21

VHS is a niche.....Hdef a niche...DVD doing so so because of bad movies and niches stealing sales from it but bad movies seem to the the real reason :X

716.7.2007 10:27
WierdName
Inactive

Although I just sound like a broken record restating what a lot of other have, I'm still going to anyways. The reason sales have dropped is because of crap movies that nobody wants to watch.

816.7.2007 11:37

Movies should be released a little sooner after coming out of theater. I think people have grown tired of having to wait so long for those few good movies to be released on DVD.

Is VHS still around? Comparing the new formats to something I've only seen in pawn shops or the $2 bin is a laugh.

I don't even see the point in Blu-Ray and HD-DVD as a new format standard. Three years from now movies will probably come out on USB Thumb-Drives.

916.7.2007 12:52

LMFAO.... Rentals are down because more people now have HSI than ever before..about 1 in 3 house holds have a computer or laptop. Out of that, half download movies from the net.... I am an installer for Directv.. I see more burned movies than music cds in house holds... I really dont believe HD format will take over the market, but I do think it will lead the market. Especially Blu-Ray.. Thats also another thing, I see more HDs and do more HD Ka/Ku installs than standard installs.. Directv, Blockbuster, and most movie production companies are jumping one HD bandwagon.. I read that by the end of this year Directv is planning on launching over 100 HD channels!!

1016.7.2007 18:42

Um, yeah. This is what we've been saying for five years or so. The movies SUCK! You come out with maybe 3 a year that anyone gives a crap about, and sure enough, they're not going to buy the rest.
GO FIGURE!
So how about this? How about Hollywood starts caring about making good movies that people will want to see, rent and own, instead of chasing down some ditzy girl who tries to record one with her cellphone?

1116.7.2007 18:53
WierdName
Inactive

All in favor of cause being stupid movies?

"I".

1216.7.2007 19:06
BIGnewb
Inactive

most movies are shit but good ones are:evan almighty,shooter,1408,knocked up

disappointement:transformers

everything is so low because of a format war.why cant there just be one new one instead of 2 always having to go at it?

1316.7.2007 19:48

What's "VHS?"
;-)

1417.7.2007 7:07

let all revert back to laserdisc and watch tron. nice big a$$ laser record.



1517.7.2007 18:06

I doubt that you can blame it on the consumers. You need to make a decent enough effort to make a excellent movie then the consumer will look into acquiring it or renting it.

1618.7.2007 11:08

Wow where advancing so fast i bet in a few more year something with even higher quality will show up and the decrease might just be from P2P movie sharing

1719.7.2007 0:21

omgosh a tiny step in the right direction. they're not blaming piracy.

1823.7.2007 8:47

I can't wait until we can download hardware.



1923.7.2007 18:01
WierdName
Inactive

Originally posted by c1c:
I can't wait until we can download hardware.
What does that have to do with anything? But since you brought it up, that would be totally awesome... except you can now easily get WMDs, I'm sure saddams followers would put up a site

Doesnt expecting the unexpected make the unexpected expected and therefore mean youre expecting the expected which was the unexpected until you expected it?
"Opinions are immunities to being told were wrong." - Relient K

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