DVD SALES SPIN DOWN
Some of the biggest theatrical blockbusters of the year are producing disappointing results on DVD and could result in lower profits than last year for several studios, according to entertainment analyst Alan Gould of investment bank Natixis Bleichroeder. ContentAgenda.com quoted Gould as saying in a note to clients on Tuesday, "Given the strong summer at the box office, the industry was expecting very strong fourth quarter home video sales. ... However, the initial read on fourth quarter video releases has been somewhat disappointing." He noted in particular that Sony's Spider-Man 3, the year's biggest theatrical hit, will likely sell fewer than 5 million copies. In order to counter falling sales, some companies have reduced the prices of DVDs, Gould observed. But, he noted, the combination of lower prices and declining sales is likely to result in a $19 million, or 29 percent, reduction in profits for the average film.
SALES OF HD DVD PLAYERS SURGE
Thanks largely to Wal-Mart's Black Friday sale of HD DVD players for $99, there are now more than 750,000 of the high-definition DVD players in U.S. households, the North American HD DVD Promotional Group announced Tuesday. The total number includes add-ons to Microsoft's Xbox 360 game players. In a statement, Ken Graffeo, head of strategic market for Universal Studios Home Entertainment and co-president of the HD DVD Promotional Group, said, "With more than four weeks left for holiday shopping, HD DVD is turning out to be the perfect consumer electronics gift."
OVERSEAS COMPETITION BETWEEN ENCHANTED AND BEOWULF REVS UP