Here is a link to the story by variety.com:
http://www.variety.com/article/VR1118016878.html?categoryId=3764&cs=1I am amazed that theatrical has set a box office gross record of $10 billion along with higher prices and margin on 3D movies during this recession. Historically, this is not unexpected, but still a great feat.
Meanwhile, home video continues to decline in dvd sales and is in a price deflation (death spiral) with $1 kiosk rentals and "cheap" Netflix programs. It seems like this part of the entertainment biz is similar to the airline industry: cutthroat prices that are not sustainable and all the players are treading water or sinking in the red. Yet, no one will make the moves needed to fix the problem.
Along came blu-ray, but hasn't been able to stem the decline. Now, 3D blu-ray is on the horizon. Can we as an industry reverse the tide and grow the business again?
I hope we can, however we need to get away from loss-leader pricing that continues to create the reality of overpriced product to the consumer when not discounted by 40% or more. We don't sell socks and toothpaste to make up for it folks.
Or am I dreaming and what we got to offer is just another sku and the studios just want to move volume out the door? I'm sure theatrical biz treats their product differently and won't embark in a race to the bottom. I wish it was the same for home video.
BTW, the studios see VOD and streaming as the next growth channel. I know that they still need to figure this out to make a profit, time will tell.
I still get excited for the good films when they are released. Just wish I can make a few more dollars in the process.
Still dreamin' and hopeful,
Paul
Media Wave
