Originally Posted by bruceames
A wiser man would have said "profit is the great equalizer". The above statement holds true only if the proportion of profit generated from that revenue remains constant.
Theater operating costs have steady risen over the years, as a much greater proportion of costs are labor and overhead, as opposed to OD production, which sees material costs and production actually improve over time.
That's why you see CE products with falling prices while service oriented products (like theater and concerts) steadily climb.
The bottom line is that while box office may be going up, the difference is going to the theater operators rather than as profit for the studios.
Ultimately, income is what the studios care about. But margin is an impact of internal business. Not of strength of sustaining conversion rates that is the traditional measurement of Home Video strength (as measured in revenue).
When measuring relative strength, revenue IS the great equalizer. Period. Always has been, always will be. It is the best measurement tool for measuring consumer interest.
And to get you back on track. You are defending the assertion that OD revenue has been "maintained" and "sustained" by Blu-ray. It hasn't. OD Home Video sell through has lagged box office. This is not fantasyland where the facts don't matter, or a propaganda site. That is why studios are changing budgets. That is why RIFs are happening.
This forum is the place where we acknowledge those truths impacting the industry and don't sugarcoat it. This is the place where we call PR spin downplaying the truth what it is... a lie.