Rich Fiscus
16 Jul 2007 7:22
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