VB Mobile Log In  |  Register          
Advertisement
Subscribe to VB Magazine
Email
Learn RSS

BETWEEN THE LINES   



Link This | Email this | Blog This | Comments (1)


Mechanic: Studios let the air out of DVD's tires

September 29, 2009  "Simply said, the studios have destroyed the price-value relationship in video, particularly when low priced rental alternatives have sprung up everywhere."

That's a quote from iIndustry veteran Bill Mechanic's  wide ranging keynote speech at Independent Film & Television Alliance Production Conference in Santa Monica today. In it, the exec delivered a frank assessment of everything from creativity (or lack of it) at major studios, the copycat strategies of many independent producers, the glut of films produced over the past several years, and the role the studios themselves have played in "the confused video market."

Of course, Mechanic knows that of which he speaks. He currently is president/CEO of independent production company Pandemonium LLC and was chairman/CEO of Fox Filmed Entertainment. Many in the home entertainment industry still know him best as head of Disney's video division (and pay TV and international theatrical) for a decade in the 1980s and very early 1990s.

I wasn't lucky enough to hear the speech live, but here's a transcript re: home entertainment.

"
I get asked a lot if the problems [of declining DVD sales] are systemic.  My answer is not necessarily.  That we would reach a point of maturation in DVD is natural and logical, but too much of the downturn is completely self-imposed.

 Like much of the bad decision making that has helped take a lot of the profit out of the business, the air was let out of the tires by the studios themselves.  No top management of a studio really cared what was going on over the past few years other than was their budget being met.

No one asked whether their units should be pushing Blu-Ray in the face of an economic melt-down or even whether or not Blu-Ray was going to be the next big ap to the general consumer.  They simply accepted the idea that they could resell their libraries at higher prices.

 So no one asked what impact dropping the price on their existing DVD’s would have.  I mean if I can buy TITANIC for under $5 in some stores, why am I so eager then to rush out to pay $30 or so when it’s released on Blu Ray?  Is the quality difference that great?  How many formats are yet to come?

 No one asked what buying great movies at cheap prices would do to new releases, which may not be as great.  Give a consumer with less expendable dollars a choice between LEGALLY BLONDE for $5 or ALL ABOUT STEVE for $20 or $30, which do I want to buy? 

 Simply said, the studios have destroyed the price-value relationship in video, particularly when low priced rental alternatives have sprung up everywhere.

 And then add in the absolute flooding of TV product from the beginning of time into the market, and you have the conditions that have absolutely killed video as the key profit center of new movies."

Strong words.There could be much discussion about the studios' role in causing the problems they are now facing, but Mechanic does get to the heart of some of the challenges studios are grappling with now.  


Posted by Marcy Magiera on September 29, 2009 | Comments (1)


Email
Learn RSS


October 4, 2009
In response to: Mechanic: Studios let the air out of DVD's tires
Paul Suarez commented:

Although I understand Mr. Mechanic's point about the diminished perceived value of DVD due to bargain bin pricing, some of his positions are problematic.

Setting aside the fact that it took Paramount years to release a TITANIC DVD featuring an anamorphic transfer, the increased audio and picture quality (the latter more apparent to even mainstream viewers on the larger displays available today) of Blu-ray are reasons some will "rush out" to buy TITANIC on BD. If we set the quality differential aside, it is *new* supplemental content added to catalog titles that also makes BD attractive. Ironically, it is Mr. Mechanic's former studio, Fox, that continues to release some BDs that do not include all of the supplemental content of their DVD predecessors: SPEED, DIE HARD, CAST AWAY, THE SIEGE and RONIN (MGM) are examples. Warner, on the other hand, continues to hire outstanding BD/DVD producers such as Jeffrey Schwarz to produce new documentaries for inclusion on even catalog BD releases, such as SET IT OFF (1996).

Although neither he nor I can prove it either way, I would be inclined to disagree with the assertion that "no one asked" whether BD should be introduced "in the face of an economic melt-down." I'd surmise there were/have been some conversations about that. But it seems to me the larger issues impacting the timing of BD's introduction to the marketplace are 1) the availability of blue laser technology; and 2) the "format war." If BD could have been brought to market sooner, perhaps it could have arrived *before* the home video market began to stagnate.

In any event, what would Mechanic have the industry do: delay the release of BD (and HD DVD) until some projected future date that the recession is supposed to be over, while supposedly maintaining perceived DVD value with higher prices . . . so that piracy could continue to grow? You can't have it both ways, Mr. Mechanic.





POST A COMMENT
Display Name or Registered Users Login Here.
Please restrict submissions to less than 7,000 characters (including any HTML formatting).

Change Image
Before submitting this form, please type the characters displayed above.
Note the letters are NOT case sensitive.

Advertisement

Advertisements





©2009 Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.
Use of this Web site is subject to its Terms of Use | Privacy Policy
Please visit these other Reed Business sites