Warner Bros. Reports Successful Simultaneous VOD, DVD Releases
Tuesday June 5, 7:23 am ET
At an investor conference Monday, Time Warner's Warner Bros. Home Entertainment Group said it is considering broader simultaneous releases of VOD and DVD movies based on successful trials with Comcast. The results of six-month trials in two markets show demand for VOD jumped 50%, while DVD sales rose 10%, and there was only a "marginal impact" on rentals. Warner Bros. president Kevin Tsujihara said studios take home 60% to 70% of revenues from sales of video on demand titles, but get only 15% to 20% for rentals. Coverage of the conference by The Hollywood Reporter said a Blockbuster spokesman reiterated his stance that studios will be cautious about cannibalizing rental and retail channels, which represent their largest revenue stream at around 70%. Tsujihara of Warner Bros. said he sees the move to VOD as "incremental", but recognizes the potential for improving profit margins over the next 12 to 24 months.
http://biz.yahoo.com/seekingalpha/070605/37368_id.html?.v=2
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