Netflix Could Undermine UltraViolet As Low Cost Rentals Trash Studio Profits: Report

Moguls will need a stiff drink nearby when they read Morgan Stanley analyst Benjamin Swinburne’s bracing report today about the state of the home video business — and Hollywood studios. He says that film operations at Universal, Disney, Paramount, Fox, and Warner Bros are worth about $19.3B, down from $40.2B in 2007. And a big reason for the 52% drop is that studios’ annual home video profits from each TV household fell to $100 last year from $127 in 2007 — and will continue to slide to $93 in 2015. Sales and high-priced rentals of DVDs and Blu-ray discs from retailers such as Blockbuster are simply falling too fast as consumers discover that they can do just fine paying $1.20 a night to rent a disc at a kiosk — or less to watch a movie from Netflix. The analyst says it’s possible that studios will boost sales of discs with the UltraViolet initiative, which gives buyers opportunities to stream the movies to mobile and other digital devices. But probably not: Read More »

Comments 50

Weinstein Co Always Finds Another Sucker

missingharvmilk2.jpgEarlier tonight I received a call from The Weinstein Co’s David Glasser claiming that the cash-strapped indie film company will emerge from its restructuring next week “debt-free”. Do I believe this? About as much as I believe any of the phony baloney spin coming out of … Read More »

Comments 24

Jack Klugman Sues Over ‘Quincy M.E’ Accounting; NBC Uni Claims $66M Losses

The complaint was filed today in Los Angeles Superior Court. This really sounds like one of the worst cases of phony-baloney studio accounting, not to mention sheer arrogance, in Hollywood history. Geez, when is Big Media going to stop this larceny? For … Read More »

Comments 42