DVD Sales Down Sharply, Movie Write Downs May Follow
A sobering article on Bloomberg, with this as the key quote:Â
“Making a movie just won’t be as profitable as it once was,†Barclays Capital analyst Anthony DiClemente in New York said in an interview. “There will be a complete bottoms-up reconstruction of the economics of the film business.â€
According to the story, fourth-quarter shipments fell 32 percent in the U.S. and Canada to 453.6 million DVDs, according to Los Angeles-based Digital Entertainment Group. The drop is the biggest since the industry-funded researcher started keeping track in 1997.
There is no story here. The report says that DVD sales could drop 11% this year.
This 11% drop will probably be made up for, by Blu-Ray disk sales, which are growing exponentially. I have been trying to buy a Blu-Ray player at my local Costco for weeks. They are always sold out.
Also not mentioned in the story is the fact that DVD and Blu-Ray Disk sales grew outside the United States. Barclays Capital analyst Anthony DiClemente in New York, has his head up his ass.
Two articles germane to this discussion from The Wrap that were probably missed as people replayed the Rosenberg Blues:
http://www.thewrap.com/article/861
http://www.thewrap.com/index.php?q=article/862
“People truly do not understand the extent to which new media is not a business,†said Marshall Herskovitz, the veteran television producer who last year declared his independence from the networks and created “quarterlife,†a web series and social media hub. “It’s remarkably not a business. I’m speaking from painful experience.†[Read the full interview.]
Herskovitz managed to make money from a single episode of the series that ended up airing on NBC before the show was cancelled. But he lost money on the 36 episodes that were streamed on Myspace and the show’s own site.
Well, this is directly related to the economy. People are cutting back and wathcing their expenses. Why buy a DVD if you can rentit for less?….Why spend money NOW on a BluRay or HD TV?….They’re waiting for current equipment to break…..or expecting prices to drop over the coming year. Sure, there’s a slump expected, but we are talking purely studios – indies rely more on those DVD’s…..
And I think we must be the only group that doesn’t understand that here is no money yet in New Media. There will be,but not yet. Wouldn’t it be a shame if we lost out it when it does come because we reached for too much too soon thereby killing the possibilities.
Right on Greg…that is what the majority is trying to get across to the MF short sighted freaks…they don’t realize they are biting off their nose to spite their face…and ruining this industry as they blunder along…
# marisa redanty says:
January 30, 2009 at 15:40
Right on Greg…that is what the majority is trying to get across to the MF short sighted freaks…they don’t realize they are biting off their nose to spite their face…and ruining this industry as they blunder along…
It’s a good thing we have people like you in union, Redacted … those with long term let’s wait and see … we’ve been waiting and seeing for decades … “Short sight freaks” got screwed on cable residuals … in 1983 … and I believe it’s “cut one’s nose off to spite one’s face” … the only way one would be able to bite one’s nose off is if someone else did it … as in what NY has done to Hollywood.
And Greg, when you say there’s “no money” in New Media … you’re saying HUGE PROFITS as in a tenfold return … is not yet possible. The internet itself wouldn’t be here when you wake up in the morning if someone RIGHT NOW isn’t making SOME money.
“No money” really means “no money to share”.
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#6
“The internet itself wouldn’t be here when you wake up in the morning if someone RIGHT NOW isn’t making SOME money. ”
You’re clearly confusing the entire Internet with that portion of it trying to figure out how to make a dime out of exhibiting creative content on the Internet.
Unless, of course, you mean that eBay and Amazon and those sites actually making money should be paying residuals to actors.
Herskovitz saying “it’s not a business” using “quarterlife” as an example is certainly interesting, but, my question to Herskovitz is “what business did you have in mind?” The “ad generated revenue business on-line?” Well, when quarterlife was a hot topic, that business didn’t really exist. Does it mean it won’t? Of course not.
Did you mean the “do it on-line, then flip it to network business?” Well, you achieved that, but nobody watched your show and it was canceled. So, is it sour grapes that you got shut down when you went big?
The argument – for the 8 thousandth time – is not, will it be a huge earner TOMORROW? it’s – where is media going? And, is it vital to nail down fair compensation NOW, whether it’s “pennies” for 5 years, then begins to blossom, OR, can we let it slide and come back to it later?
Common sense and precedent tell us the first is the obvious choice. There is a REASON the producers are presenting SAG with such a head-scratcher of a contract, trying to roll-back on residuals, product placement, clip consent – ALL things that have to do with an internet that they could exploit greatly to their benefit, WHEN it starts firing on all cylinders, MINUS those obligations to SAG.
There is a REASON they are doing this. Why do you think, again, based on precedent and common sense, they are NOT doing this to cut us out as much as possible?
Anyone who does not see that new media is here now and will only get stronger in the future is still doing math on their abacus. It is the future and if we don’t get our fair share of it now then it will be lost forever like DVD and cable. Wake up people…put aside your zest to settle at any cost because you want a merger and fight for new media jurisdiction and payment now. If not, you will be giving away the future for all actors. If their last best and final offer doesn’t include a deal for actors where we share in those huge profits down the road, then vote no on the contract. We have to take a stand now or forever hold our peace. Time to let our leadership know we are not going to let a handful of people screw us out of sharing in the huge profits that new media will bring.
Mikey
mikey….the deal gives us jurisdiction….maybe you should put aside your zest to screw up the future and read the deal ….
it is not at all the same as DVD and cable…learn from people who were there
it is not a “handful’ of people…it is the rest of the country of union members who do not agree with your assessment
please get some facts on your own…not from what you hear…read as much of the other deals as you can…..not the talking points…
Merger is MF’s biggest fear and they have labeled us as trying to make it our only goal…not at all true. However, merger should and will happen but the problem at hand is getting a contract. i will not respond to your crazy talk so if you respond you must make some sense and have some facts….look at the deal and see where we GET jurisdiction…ok?
profits come from sale of airtime. sale of airtime is only high if the product sells from the ad on the internet. not happening at this point.
is the future in the internet? of course and we have never said otherwise. (another point you don’t listen to…) but to handcuff ourselves to a model of ad revenue that may not even be used in its present ASSUMED form is just plain stupid. can’t you see that?