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Studios hoping for winter turnaround for DVD sales

Written by Andre Yoskowitz (Google+) @ 25 Sep 2007 19:59 User comments (8)

Studios hoping for winter turnaround for DVD sales Now that the summer box office frenzy has ended leaving broken records in its wake, the studios are hoping that they can see a similar boost in DVD sales and rentals when the movies debut in the fourth quarter of 2007.
Beginning with the worldwide hit "Knocked Up", 16 films that grossed more than $100 million domestically are expected to be released on DVD from now until the end of the year.

There is huge money at stake as well. The domestic home video business brings in around $25 billion USD annually as compared to under $10 billion USD annually for box office grosses.

However, the business has been in decline for most of the year, hitting a 5 to 10 percent decline.

Additionally, the biggest physical rental chains in the market have hit some speed bumps as of late. Blockbuster has hit a state of turmoil recently and Movie Gallery has been in such financial trouble that it was forced to close over 500 stores yesterday. The next-gen format war as well is in complete uncertainty, especially after Paramount threw its support solely behind HD DVD. Afterdawn readers know however that HD sales still pale in comparison to standard def totals.

And so, with that being said, the big question remains as to whether the strong box office return will lead to strong DVD sales and rentals in the fourth quarter and busy holiday season.

"That's the big question,"
concedes Paramount homevid topper Kelley Avery, who believes the industry will end slightly up by year-end.

"The good news is we're coming off a record summer,"
Avery says. "And we do know that hits bring people into stores."

Fox Home Video general manager of North America Simon Swart is more confident, predicting "the best fourth quarter business the business has ever seen. The bottom line is, the more studio movies do better, the better it is for the industry."

To date, there have been signs that Mr. Swart may be right. DVD box sets of TV shows have sold remarkably well with more sets still set to hit shelves.

"We have a fabulous slate coming off a record summer,"
Universal homevid topper Craig Kornblau says. "We're going to recover everything and raise it up a little bit more."

"It's crazy busy," says Kornblau, "It's hard not to feel excited right now."

Source:
Variety

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8 user comments

126.9.2007 9:03
nobrainer
Inactive

maybe they need to make films worthy of purchasing, as the films hollywood produces are so poor that i wouldn't even bother to waste a dvd burning it after downloading it from the pirate bay! actually most of them arnt even worth the hard drive space, or the 2 mins it takes to look for the dam films.

226.9.2007 9:40

I stopped buying movies as soon as HD films were announced.I'd rather buy HD movies but because of the format war I'll wait, which is what a lot of people are doing.
I blame the BIG corporations as they created the mess in the first place.So it's profits down for the forseeable future,not suprising at all.

This message has been edited since its posting. Latest edit was made on 26 Sep 2007 @ 15:10

327.9.2007 8:20

I also prefer HD. I rented Knocked Up on DVD and it was SO blurry!

428.9.2007 8:09

Yeah, well maybe they should put a halt on rolling out online video services. This industry always seems to stab themselves. They go in all different directions with all different plans to boost sales, and then cry when one falls short......and then blame piracy. Piracy is the biggest scapegoat. Funny since they don't even understand the technology behind the various forms of file sharing.

Originally posted by ChromeMud:
I stopped buying movies as soon as HD films were announced.I'd rather buy HD movies but because of the format war I'll wait, which is what a lot of people are doing.
I blame the BIG corporations as they created the mess in the first place.So it's profits down for the forseeable future,not suprising at all.
I hear ya man. I stopped buying DVD's about a year ago. I can't see myself investing in a dying format. Especially since I've been saving for a HDTV this past year will will hopefully have one by this coming Spring. And I've seen a HD movie on my friends HDTV. Blew me away. Renting is fine for me right now. So I'll be giving them some money I guess.

528.9.2007 13:10
RNR1995
Inactive

A format war was stupid
Porn will determine the winner
The industry is it's own worst enemy
Why buy when you can watch for free on cable?

628.9.2007 13:10
RNR1995
Inactive

A format war was stupid
Porn will determine the winner
The industry is it's own worst enemy
Why buy when you can watch for free on cable?

728.9.2007 21:57

Porn wont determine the winner since it is so easy to just download it for free. This isn't the '80s anymore where it made a difference. Also, the dvd industry has been down lately because all the movies they have released have been shit. They think that by releasing the movies in the "holiday spending season" it will somehow boost sales, but there is only so much money to go around it will only be hurting people. Spread out all the good titles and people will have plenty of money to buy them all. This is almost as ridiculous as releasing Shrek 3, Pirates 3, and some other "big" movie on consecutive weekends and then complaining about how they didn't meat expectations.

828.9.2007 22:32

This is duee to the fact that the new formats are comming and this format will eventually go down also.

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