Blog

Today in Connected Consumer

The powers that be in Hollywood seem finally to be grokking the fact that the decline in DVD and Blu-ray sales is irreversible and requires a fundamental re-balancing of the risks and rewards of movie making. Speaking at an investor conference in New York yesterday, Viacom CEO Philippe Dauman said revenue assumptions during the movie green-lighting process have changed so dramatically, particularly with respect to disc revenue, that Paramount has been compelled to restructure deals with talent and other parties with a claim on revenue streams. “We don’t mind sharing the upside [of a movie with talent] as long as we don’t have a downside, or we have a sharing of that risk,” Dauman said, as reported by Home Media Magazine. “The way we look at the movie business is that we want to create great films and we want to manage the downside, the risk/reward equation if you will,” Dauman said. Meanwhile, BTIG Research analysts Rich Greenfield argues in a blog post that studio efforts to create new revenue streams, such as Fox’s early EST release of “Prometeus” simply aren’t bold enough to move the needle. “Shortening windows and reducing digital movie pricing is a logical move, particularly to encourage HD digital ownership,” Greenfield wrote. “However, the more important question that remains unanswered is how much bigger would the early digital release be if it came far sooner than fourteen weeks post-theatrical? “