Day-and-Date for Disc Based Media and VOD Strategy is Working

Sure, maybe it is a bad example because it’s “Twilight”. It’s something you wouldn’t understand unless you’re a teenage girl. However, Summit Entertainment is reporting that their fears of digital copies taking precedence over the obsolete disc formats are still not yet a reality. Observe:

When Summit Entertainment released the vampire hit simultaneously on DVD and video-on-demand, it broke the oldest taboo in home entertainment: No other studio had released a pic grossing more than $100 million at the domestic B.O. that way, fearing VOD transactions would cannibalize disc sales.

As the entertainment biz inevitably moves toward a day when discs will give way to product delivered directly to TVs and computers, the business is poised somewhat uneasily on a tightrope. Summit and some majors like the day and date VOD and DVD release strategy; others are worried it will cut into DVD sales.

But that didn’t happen with “Twilight”: The March release became — and still is — the year’s top home entertainment title. Almost 8.5 million copies have been sold on disc or via download on sites such as iTunes, while rentals have exceeded 14 million transactions on all formats, with VOD accounting for a healthy portion of that.

Summit Home Entertainment prexy Steve Nickerson is convinced the release strategy paid off in greater overall coin.

The article goes on to explain more on the decline of DVD sales and where the market is at. It’s a good read, so check out the full article on Variety – The upside of a DVD and VOD day-and-date release.

Warner to Charge DVD Consumers for Friday the 13th Digital Copy

Warner is spreading the divide between DVD and Blu-ray with this move: they’ll be charging $1.99 for a digital copy of Friday the 13th should you decide you don’t want to purchase the Blu-ray copy. Warner argues that the demand for the digital copy simply isn’t there if you’re shopping for DVDs still. The word:

Both single-disc standard DVD versions, Friday the 13th Theatrical Cut and Friday the 13th Killer Cut, are priced at $28.99. The titles feature links to an online digital copy, presumably accessible through individual registration codes received after the $1.99 payment.

The Friday the 13th Blu-ray version, priced at $35.99, embeds the copy on disc for no extra fees.

Studios, including Warner, have been increasingly adding free digital copies to titles to boost their attractiveness. Warner is one of the few companies to now charge for the extra.

Some consumers will likely dislike this pay-for-copy strategy. But Warner earlier confirmed that the most robust users of digital copy are Blu-ray buyers, not DVD purchasers.

With the no-charge digital copy, Warner also further distinguishes the Blu-ray Friday the 13th over its two DVD versions.

What Warner doesn’t realize is that in a few years we may see all disc based formats fading out as VOD steps in. One can only hope, at least. Tip of the hat to VidBiz once again.

Warner Bros Debuts Blu-ray/DVD/Digital Combo Release

Warner Bros. has taken a new approach with one of their upcoming releases: Inkheart will come in multiple flavors, including a package that includes the film on Blu-ray, DVD, and a digital copy for the price of a single Blu-ray copy. The film will also see a simultaneous release on many VOD services. Check it:

Inkheart (pre-order May 19), a family adventure about books that come to life, is priced at $35.99 for the Blu-ray combo and $28.98 for the standard-definition single disc.

Warner joins a growing list of studios now offering combo releases in an effort to make Blu-ray more convenient, portable and therefore appealing to families considering the new format, including 20th Century Fox Home Entertainment, Walt Disney Studios Home Entertainment and MGM Home Entertainment with The Princess Bride, among other titles.

In addition to the standard DVD copy, the Inkheart Blu-ray combo also exclusively includes a digital copy of the film. [...]

Warner also will bow the title for Web-based and cable/satellite video-on-demand services, including Xbox 360, PlayStation 3, iTunes and Amazon Video on Demand, day-and-date with its Blu-ray/DVD release.

With more releases like this one, there will most likely be more uptake for conversion with those still clinging fast to their DVD collections. Full story here.

Independent Distributors Closing the Gap Between DVD and Blu-ray

A handful of independent distriubtion companies, including The Criterion Collection, First Look Studios, Cinevolve, and E1 Entertainment are debuting Blu-ray titles at the same (or within $1 of) their DVD counterparts in an effort to close the price gap between the two formats. Check this out:

Although consumers and retailers have expressed interest in seeing the pricing gap disappear, the major studios so far have only used equal or near-equal pricing for DVD and Blu-ray on a handful of titles. New movies frequently carry Blu-ray list prices of $34.99 to $39.99, and the high-definition version is usually priced $5 to $10 above the standard DVD version of the same title.

In June, E1 will release two films on DVD and Blu-ray, thriller Elsewhere (June 2) and Heather Graham-starring comedy Baby on Board (June 9), each at a $24.95 price point on either format.

[...]

Cinevolve is releasing some films on Blu-ray at $24.95, including upcoming releases of comedySisterhood (May 19) and filmmaker Jim Killeen’s documentary Google Me (July 21). However, the Blu-ray prices are still at a premium over the company’s standard DVDs. Sisterhood is priced at $22.95 on DVD, for example.

[...]

Treston is forging ahead with Blu-ray even though he doesn’t expect the format to last nearly as long as standard DVD has. Cinevolve also is working on digital download efforts. “We want to be as future-ready as we can be,” he said.

Yet Treston encourages other independents to get into Blu-ray to keep production costs down. “With more on board, it will lower the cost,” he said.

With Blu-ray prices falling, there are surely more shoppers out there ready to make the leap to compliment their new HDTV purchases. It is good news for Blu-ray, as the price premium for the optical disc has been the biggest obstacle for the new format to break into the majority market. (We’re still waiting for VOD to take over completely, but that will come in due time).

Full article here.