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Discussion Starter · #1 ·
Editorial on price erosion of rental and sell-through DVD market.


All of this pricing pressure on content is going to add up, particularly with the current mass production of shiny discs model.

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You've got to hand it to the studiosif nothing else, they sure know how to follow the money.


After more than half a year of slumping DVD sales but soaring rental action, studios that had previously all but ignored the rental market are all of a sudden clamoring to get back in.


Two studios, Paramount Home Entertainment and Summit Entertainment, last week announced a back to the future ploy in which they will release titles exclusively to the rental market before selling them to the big retail sellers of DVD and Blu-ray Disc software.


When Summit's The Brothers Bloom, currently near the end of a limited theatrical release, hits DVD and Blu-ray Disc Sept. 29, sales will be limited to rental dealers. Wal-Mart, Best Buy and other big sellthrough merchants are going to have to wait until the first part of 2010 before they can buy the title from Summit, at a discount from the usual wholesale price for a new release.
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Both moves came just one week after Sony Pictures Home Entertainment stunnedand, some say, angeredother studios by reaching an agreement with Redbox to effectively lease its titles for distribution through the chain's 17,000 rental kiosks, in a five-year deal valued at $460 million. Studio executives have long railed against Redbox for allegedly devaluing DVDs by renting them for only a buckand, more recently, for cannibalizing the sellthrough business by setting up shop in the entryways of Wal-Mart stores. Universal Studios Home Entertainment has even gone to court to try to stop Redbox from renting its titles, while another studio president told me that in his view Redbox kiosks are the equivalent of dollar movie houses that certainly should not get first-run releases.


But heyaccording to mid-year estimates from Rentrak, consumer spending on video rentals is up a remarkable 8.3% so far this year. And studio executives, who undoubtedly are getting hammered by their bosses for lackluster DVD sales numbers, are going to do what they have to do to make those elusive budgets and forecastseven if it means sleeping with the enemy.


Business, after all, is business.
http://www.homemediamagazine.com/tks...ollowing-money
 

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Quote:
Originally Posted by PSound /forum/post/16922827


Editorial on price erosion of rental and sell-through DVD market.


All of this pricing pressure on content is going to add up, particularly with the current mass production of shiny discs model.





http://www.homemediamagazine.com/tks...ollowing-money

The Brothers Bloom

- 20 mil budget

- Made 3 mil to date

- number of theatres: 173


I smell...dog. This thing will never even cover its budget.


They want to see if this will even rent before pressing a bunch of discs that will sit in stores and wharehouses forever.
 

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Discussion Starter · #3 ·

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Originally Posted by fpconvert /forum/post/16923876


The Brothers Bloom

- 20 mil budget

- Made 3 mil to date

- number of theatres: 173


I smell...dog. This thing will never even cover its budget.


They want to see if this will even rent before pressing a bunch of discs that will sit in stores and wharehouses forever.

Right.....


Because the studios do not have any metrics that help them predict (based on box office, genre, etc) the anticipated sell-through for DVD.




It is fun to counter poorly thought out arguments.
 

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Originally Posted by PSound /forum/post/16924109


Right.....


Because the studios do not have any metrics that help them predict (based on box office, genre, etc) the anticipated sell-through for DVD.




It is fun to counter poorly thought out arguments.

No wonder your posts generate 0 responses on a regular basis.
 

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Discussion Starter · #5 ·

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Originally Posted by fpconvert /forum/post/16924554


No wonder your posts generate 0 responses on a regular basis.

Zero is certainly better than "They want to see if this will even rent before pressing a bunch of discs that will sit in stores and wharehouses forever."

 

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Quote:
Originally Posted by fpconvert /forum/post/16924554


No wonder your posts generate 0 responses on a regular basis.

I don't want to get in the middle of this argument.


But I will say that I do read many of PSound's posts. Sometimes I only read the titles, but I still think they "add value" to me. His posts don't need to generate any responses to be useful.
 

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Quote:
Originally Posted by Phantom Gremlin /forum/post/16926425


I don't want to get in the middle of this argument.


But I will say that I do read many of PSound's posts. Sometimes I only read the titles, but I still think they "add value" to me. His posts don't need to generate any responses to be useful.

There is a section at the top for "news only" that asks to keep discussion to a minimum. I respect that and try not to reply, if I agree or not.

Below the "fold" is the section open for discussion. We are all free to participate or not.
 
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