Alarm bells come too late for Sony Pictures | The Media Wonk

Alarm bells come too late for Sony Pictures | The Media Wonk

Sony starts layoffs. Blu Ray ain't selling like they expected. DVD sales are down while DVD rentals are up:

# Now one year later, looking at the cold hard facts of 2009, retail spending on sell-through DVDs and Blu-Ray discs dropped by -18% while rental of these products actually increased by 4%. As a result, the sell-through of physical discs declined from 63% of the market to 57%.

# This massive change in behavior continues to have negative implications for studio profitability as every home video executive would rather book the $16 of profit contribution per transaction from selling a disc vs. the $3.50 to $1.40 per disc profit contribution from rental.

And it comes home...


Bomb#20 said...

They supposedly realize it, but I'll still wait to see if it really has sunk in that the landscape has changed.

And BD was a bad business decision, let alone, the money spent in the market war with Toshiba (HD-DVD). It was all just a waste.

I also liked the comment from Kim:
"'social media effect on the performance of films'

What does that mean? 'If we make crappy films, people realize it and tell their friends not to go see them'?"

Good article from Media Wonk.

DVC said...

Anyone wanna field this?:

"Disney Aims to shorten big-screen run for 'Alice'"