Digital-media sales stalled in Q1

Kosty · 07-01-2009, 07:01 AM

Hey, Blu-ray doesn't need cheerleaders now, maybe during the format war, but not now as its up to studio and retailer execution and consumer buying habits now.

But during the format war I was a famous Blu-ray skeptic and HD DVD supporter so I never was issued a Blu-ray cheerleader sorority card.

In fact, let me tell you about my one innocuous post and insta ban on Blu-ray.com sometime and my position on their HD DVD zealot enemies list. Now those were the days.

bicker · 07-01-2009, 07:07 AM

What I find interesting is how some Blu-ray advocates are now presenting Blu-ray as an enthusiasts' medium. That seems to indicate to me that they aren't as optimistic about this 4th quarter surge that some folks are predicting in this thread.

Nikopol · 07-01-2009, 07:13 AM

Quote:

Originally Posted by Kosty

Well don't forget those blue pom poms either.

Save the cheerleader, save Blu-ray...

I am cheerleading for Blu-ray because it's an awesome product!

Lee Stewart · 07-01-2009, 07:37 AM

Paramount looking for distribution partner

PHYSICAL: Studio in talks with Sony, Fox

Quote:

By Marcy Magiera and Susanne Ault -- Video Business, 6/30/2009
JUNE 30 | PHYSICAL: Paramount Pictures is in talks to farm out some of its home entertainment operations to another studio, which would likely result in considerable cost savings to the Viacom unit.

Paramount is in negotiations with Sony Pictures Home Entertainment and 20th Century Fox Home Entertainment, and possibly others, to take over physical fulfillment of its product to retail and back-office functions such as billing and collections. Fox has similar relationships with Lionsgate and Anchor Bay Entertainment, and Universal provides similar service to Summit Entertainment, but no major Hollywood studio currently handles such duties for another major.

Paramount would retain its own brands and sales and marketing departments. It also currently handles distribution of DreamWorks live-action titles through 2010 and DreamWorks Animation titles through 2012, which would also presumably be included for now in whatever deal Paramount strikes.

The discussions, which were first reported by Financial Times and confirmed by VB, are the latest in a string of significant changes at Paramount, which has been without a division president since Kelley Avery left the company in May. Earlier, in December, domestic president Meagan Burrows and several other senior executives left the division.

The studios involved had no comment.

Paramount, like other studios, is grappling with the maturation of the DVD market, which saw consumer sales fall by about 15% in the first quarter. Though sales of the Blu-ray Disc high-def format are growing by more than 100%, neither it nor new digital formats are large enough yet to counterbalance the DVD decline.

A deal with Paramount would put another studio in the position to collect fees on a large volume of product. The studio will have two of the fall’s

http://www.videobusiness.com/article....html?nid=3513

MikeRox · 07-01-2009, 08:15 AM

Quote:

Originally Posted by bicker

What I find interesting is how some Blu-ray advocates are now presenting Blu-ray as an enthusiasts' medium. That seems to indicate to me that they aren't as optimistic about this 4th quarter surge that some folks are predicting in this thread.

It is an enthusiasts' medium, just as DVD was in the first half of its lifespan.

It certainly indicates nothing about 4th quarter performances or sentiments about them.

Calling something an "enthusiasts" option makes it more desirable. People like to consider themselves enthusiasts if they have more than a passing interest. It also makes the product look more appealing and "must have".

bicker · 07-01-2009, 08:24 AM

However, it also limits the revenue potential, and makes offerings fewer and further between.

MikeRox · 07-01-2009, 09:52 AM

Quote:

Originally Posted by bicker

However, it also limits the revenue potential, and makes offerings fewer and further between.

It doesn't limit anything. It only makes the product more desirable.

ack_bak · 07-01-2009, 10:04 AM

This is an ominous sign for digital media. What is ironic to me is that many bloggers keep talking about how Blu-Ray is on its death bed and that digital media will be the new king, but the reality is not playing out that way at all.

Digital media is really struggling right now and I am not that surprised. When you consider the bandwidth issues, talks of caps, pricing, DRM, offerings, etc.

How do you grow digital media? Well, first of all the studios really need to address the pricing. IMHO, it needs to be more competitive. I pay, on average, about $2-2.50 per rental on Blu-Ray. Sometimes less (depending on how many movies I watch from Netflix every month). Most of them are new releases. If Apple offered new release HD rentals for $1.99 and catalog HD rentals from 99 cents, I would go out and buy an AppleTV right now. How about you pay $4.99-9.99 (catalog/new release) for a movie and have unlimited streaming for life for that movie? But I am not going to drop $229-329 for an AppleTV and then pay the rental prices that they are asking for HD. Not when I can get the superior looking and sounding Blu-Ray for cheaper.

I have little to no incentive...

Lee Stewart · 07-01-2009, 10:10 AM

Quote:

Originally Posted by ack_bak

This is an ominous sign for digital media. What is ironic to me is that many bloggers keep talking about how Blu-Ray is on its death bed and that digital media will be the new king, but the reality is not playing out that way at all.

Digital media is really struggling right now and I am not that surprised. When you consider the bandwidth issues, talks of caps, pricing, DRM, offerings, etc.

How do you grow digital media? Well, first of all the studios really need to address the pricing. IMHO, it needs to be more competitive. I pay, on average, about $2-2.50 per rental on Blu-Ray. Sometimes less (depending on how many movies I watch from Netflix every month). Most of them are new releases. If Apple offered new release HD rentals for $1.99 and catalog HD rentals from 99 cents, I would go out and buy an AppleTV right now. How about you pay $4.99-9.99 (catalog/new release) for a movie and have unlimited streaming for life for that movie? But I am not going to drop $229-329 for an AppleTV and then pay the rental prices that they are asking for HD. Not when I can get the superior looking and sounding Blu-Ray for cheaper.

I have little to no incentive...

What are you paying monthly? You are on a monthly plan aren't you?

ack_bak · 07-01-2009, 10:14 AM

Quote:

Originally Posted by Lee Stewart

What are you paying monthly? You are on a monthly plan aren't you?

$10.99 a month with unlimited 1 at a time and streaming (this includes Blu-Ray). Typically rent 4-6 movies per month. My Netflix turnaround time is very fast as their distro center is less than 15 miles away from my house.

Once Redbox BD rentals pop up on my neck of the woods I will downgrade to the $5.99 per month Netflix plan and only get 2 BD's per month.

bicker · 07-01-2009, 10:30 AM

Quote:

Originally Posted by MikeRox

It doesn't limit anything.

Of course it does.

Dare · 07-01-2009, 04:39 PM

Quote:

Originally Posted by Kosty

Last years 4Q may even have been muted by the economic downturn, so if this year picks up a tad in general economic terms and lower Blu-ray hardware prices surges Blu-ray player sales and Star Trek Transformers ROTF et all happens then DVD + Blu-ray revenues may gain. Its all if if if .....though.

We can assume that there will always be current blockbusters in the pipeline, so they should already be figured into the expectations.

Kosty · 07-01-2009, 10:16 PM

Quote:

Originally Posted by ack_bak

This is an ominous sign for digital media. What is ironic to me is that many bloggers keep talking about how Blu-Ray is on its death bed and that digital media will be the new king, but the reality is not playing out that way at all.

Digital media is really struggling right now and I am not that surprised. When you consider the bandwidth issues, talks of caps, pricing, DRM, offerings, etc.

How do you grow digital media? Well, first of all the studios really need to address the pricing. IMHO, it needs to be more competitive. I pay, on average, about $2-2.50 per rental on Blu-Ray. Sometimes less (depending on how many movies I watch from Netflix every month). Most of them are new releases. If Apple offered new release HD rentals for $1.99 and catalog HD rentals from 99 cents, I would go out and buy an AppleTV right now. How about you pay $4.99-9.99 (catalog/new release) for a movie and have unlimited streaming for life for that movie? But I am not going to drop $229-329 for an AppleTV and then pay the rental prices that they are asking for HD. Not when I can get the superior looking and sounding Blu-Ray for cheaper.

I have little to no incentive...

Rental kiosks for $1 or $2 sure also hurt download streaming and VOD attempts to gain revenues.

MikeRox · 07-02-2009, 02:53 AM

Quote:

Originally Posted by bicker

Of course it does.

So you're saying you've seen something you really like, you have the money, you really want it, but then you've gone "oooh no, I can't have that... I'm not an enthusiast and it's only allowed for them"? course you havn't, you would have bought it anyway and felt chuffed at your newly promoted status to an enthusiast. Don't talk so bloody wet.

MikeRox · 07-02-2009, 03:03 AM

Quote:

Originally Posted by ack_bak

This is an ominous sign for digital media. What is ironic to me is that many bloggers keep talking about how Blu-Ray is on its death bed and that digital media will be the new king, but the reality is not playing out that way at all.

Digital media is really struggling right now and I am not that surprised. When you consider the bandwidth issues, talks of caps, pricing, DRM, offerings, etc.

I think with digital distribution at the moment, you've got a very limited market willing to embrace it. This market have already embraced it and so growth now may prove difficult.

People say that the firmware updates in BD are too complex for "joe bloggs" if that's the case, digital distribution is going to be similar as in essence, it IS an internet firmware update for each film you download/stream.

Biggest issue for me though is lack of ownership. I pay £14.99 a month for unlimited rentals (3 discs at a time) of which I can get through upwards of 15-20 films making them less than £1 a rental. Yet on Xbox Live streaming a HD movie is as much as £7 for a poorer quality, waiting for download and then if you start it, having to have watched the entirity within 24 hours.

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07-01-2009, 07:01 AM	#16
Kosty High Definition is the definition of life. Join Date: Aug 2007 Posts: 1,589	Hey, Blu-ray doesn't need cheerleaders now, maybe during the format war, but not now as its up to studio and retailer execution and consumer buying habits now. But during the format war I was a famous Blu-ray skeptic and HD DVD supporter so I never was issued a Blu-ray cheerleader sorority card. In fact, let me tell you about my one innocuous post and insta ban on Blu-ray.com sometime and my position on their HD DVD zealot enemies list. Now those were the days.

07-01-2009, 07:07 AM	#17
bicker High Definition is the definition of life. Join Date: Jun 2006 Location: Burlington, MA Posts: 1,532	What I find interesting is how some Blu-ray advocates are now presenting Blu-ray as an enthusiasts' medium. That seems to indicate to me that they aren't as optimistic about this 4th quarter surge that some folks are predicting in this thread.

07-01-2009, 08:24 AM	#21
bicker High Definition is the definition of life. Join Date: Jun 2006 Location: Burlington, MA Posts: 1,532	However, it also limits the revenue potential, and makes offerings fewer and further between.

07-01-2009, 10:04 AM	#23
ack_bak Hidef Junkie Join Date: Jul 2008 Posts: 2,416	This is an ominous sign for digital media. What is ironic to me is that many bloggers keep talking about how Blu-Ray is on its death bed and that digital media will be the new king, but the reality is not playing out that way at all. Digital media is really struggling right now and I am not that surprised. When you consider the bandwidth issues, talks of caps, pricing, DRM, offerings, etc. How do you grow digital media? Well, first of all the studios really need to address the pricing. IMHO, it needs to be more competitive. I pay, on average, about $2-2.50 per rental on Blu-Ray. Sometimes less (depending on how many movies I watch from Netflix every month). Most of them are new releases. If Apple offered new release HD rentals for $1.99 and catalog HD rentals from 99 cents, I would go out and buy an AppleTV right now. How about you pay $4.99-9.99 (catalog/new release) for a movie and have unlimited streaming for life for that movie? But I am not going to drop $229-329 for an AppleTV and then pay the rental prices that they are asking for HD. Not when I can get the superior looking and sounding Blu-Ray for cheaper. I have little to no incentive...