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Format of Netflix Instant movies? - Page 3

post #61 of 62
Quote:
Originally Posted by PSound View Post

Paramount had a great quarter based on WAY better than expected BO of "Paranormal Activity" and because of the home video release of Transformers and G.I. Joe. Those are certainly titles that tend to do well with the PS3 base, and outperform on Blu-ray compared to most releases. Indeed the sell-through rate for those two movies was higher than average and helped fuel a strong earnings quarter.


That said, the physical media market as a whole continues to contract. Kudos to Paramount for a great quarter and having a year where they were #2 in box office (and had their highest profitability in 7 years), but they certainly understand where their future lies. Epix is going to be critical for them, as is the entire Digital Distribution infrastructure.

From their earnings call:

So were Star Trek and/or Transformers 2 available for download on release day on home video? I seem to recall Paramount delaying them for download/streaming.

If streaming/downloads are so important to them would would they delay release for streaming/downloads?
post #62 of 62
Quote:
Originally Posted by ack_bk View Post

So were Star Trek and/or Transformers 2 available for download on release day on home video? I seem to recall Paramount delaying them for download/streaming.

If streaming/downloads are so important to them would would they delay release for streaming/downloads?

They are trying to protect the revenue stream of physical media. There is no denying that the revenue from physical media sell-through is massive, just like there is no denying that physical media revenue is in decline. That is why the studios are trying to build a sell-through window. They believe they can slow (or stop) the bleed of revenue dollars from physical media sell-through.


The studios (and the record labels) are notoriously slow about embracing change. Warner seems to be the best at trying to move forward, but even some of their recent actions are still geared towards trying to slow the decline of physical media sell-through. At least WB is wise in experimenting with Digital Distribution and seeing how it can grow their revenue while not negatively impacting other areas of their business.
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