Dvd Sales Spin Down

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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.




28/11/2007


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