By David Poland firstname.lastname@example.org
The Day The Movies Died
Wow… that’s called burying the lead!
Dawn C. Chmielewski at the LA Times did a story today that is, perhaps, the most important story to the film industry in the last two years. Stop obsessing on frickin’ 3D and the overhyped box office boom and take a look at this.
Let me step backwards for a second to let you know why I see this as a huge landmark (which I am embarrassed to say I didn’t know about for 6 years and 12,900 kiosks that this company has been in operation).
The economics of a movie are;
Theatrical = the most dollars per pair of eyeballs
DVD sales = a stable price per sale, with unknown # of eyeballs per sale
DVD rental = a stable price per sale with maximized numbers of eyeballs per sale, but in some cases, revenues returned to studios on a formula that approximates a per-rental basis.
Pay-Per-View = a strong number for each sale, but very, very limited number of buyers
Internet Free Stream = no revenue except for savings from unions & ad sales
Internet Paid Stream/download = smaller than PPV revenue per unit and even more limited sales
Other Ancillaries = getting smaller every year
What percentage of the pie each area has made up has changed year to year. There was a period during which DVD sales were significantly higher than theatrical revenues… and then added more dollars from the rentals. But as DVD sales have dropped for theatrical movies – and please, keep in mind that this is not this year