Disney considering raising Blu-ray prices because its a premium product
02-03-09, 08:40 PM
#1
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Disney considering raising Blu-ray prices because its a premium product
http://www.videobusiness.com/article....html?nid=3513
Wonderful. Charging us to get a useless DVD/Digital Copy and the pleasure of going on BD-Live to send Mail to people only our "Disney Friends" and play trivia.
FEB. 3 | Walt Disney’s studio entertainment unit’s fiscal first-quarter earnings dropped 64% as DVD titles such as WALL-E and The Chronicles of Narnia: Prince Caspian failed to keep pace with year-earlier releases such as Pirates of the Caribbean: At World’s End, Ratatouille and High School Musical 2. The company, whose sales from older DVD titles also fell, said it was looking to cut costs related to its DVD marketing, production and distribution while possibly raising prices on some of its Blu-ray titles.
Studio entertainment operating earnings for the quarter ended Dec. 27 were $187 million, down from $514 million a year earlier. The division’s sales declined 26% to $1.94 billion and accounted for 20% of the parent company’s revenue, down from 25% a year earlier, the company said in a statement today.
Disney’s DVD sales were consistent with the broader decline in home entertainment demand last year, as the U.S. economic downturn caused customers to cut discretionary spending. Last year, U.S. home entertainment spending fell 5.7% from a year earlier to $21.7 billion despite Blu-ray Disc sales tripling to about $750 million, according to data compiled by Video Business and Rentrak.
"It's clear that the economy has had an impact on DVD sales," said Disney Chief Executive Officer Robert Iger on a conference call with analysts today. "We need to be more selective on what we choose to make and what we choose to distribute."
Iger added that, with many of Disney's Blu-ray titles including features such as a standard-definition of the film and other extras, the company may be able to raise prices on such titles.
Disney last year had about 12% of the U.S. home entertainment market, trailing Warner Home Video, News Corp.’s 20th Century Fox Home Entertainment and Viacom’s Paramount Home Entertainment. WALL-E was the sixth best-selling DVD last year despite a Nov. 18 release date, while the studio’s Enchanted was No. 9. Disney’s No Country for Old Men tied Lionsgate’s 3:10 to Yuma as the third most-rented DVD of last year.
Overall, Disney’s net income fell 32% to $845 million, or 45¢ a share, from $1.25 billion, or 63¢, a year earlier, as sales fell 8.2% to $9.6 billion, the company said today. Disney, whose media networks and parks and resorts units also saw earnings declines, was expected to earn 53¢ a share on $10.17 billion, the average analyst estimates in a Thomson Financial survey.
Disney shares fell more than 7% in extended trading at about 5:30 p.m. Eastern time today
Studio entertainment operating earnings for the quarter ended Dec. 27 were $187 million, down from $514 million a year earlier. The division’s sales declined 26% to $1.94 billion and accounted for 20% of the parent company’s revenue, down from 25% a year earlier, the company said in a statement today.
Disney’s DVD sales were consistent with the broader decline in home entertainment demand last year, as the U.S. economic downturn caused customers to cut discretionary spending. Last year, U.S. home entertainment spending fell 5.7% from a year earlier to $21.7 billion despite Blu-ray Disc sales tripling to about $750 million, according to data compiled by Video Business and Rentrak.
"It's clear that the economy has had an impact on DVD sales," said Disney Chief Executive Officer Robert Iger on a conference call with analysts today. "We need to be more selective on what we choose to make and what we choose to distribute."
Iger added that, with many of Disney's Blu-ray titles including features such as a standard-definition of the film and other extras, the company may be able to raise prices on such titles.
Disney last year had about 12% of the U.S. home entertainment market, trailing Warner Home Video, News Corp.’s 20th Century Fox Home Entertainment and Viacom’s Paramount Home Entertainment. WALL-E was the sixth best-selling DVD last year despite a Nov. 18 release date, while the studio’s Enchanted was No. 9. Disney’s No Country for Old Men tied Lionsgate’s 3:10 to Yuma as the third most-rented DVD of last year.
Overall, Disney’s net income fell 32% to $845 million, or 45¢ a share, from $1.25 billion, or 63¢, a year earlier, as sales fell 8.2% to $9.6 billion, the company said today. Disney, whose media networks and parks and resorts units also saw earnings declines, was expected to earn 53¢ a share on $10.17 billion, the average analyst estimates in a Thomson Financial survey.
Disney shares fell more than 7% in extended trading at about 5:30 p.m. Eastern time today
Last edited by Gizmo; 02-03-09 at 08:42 PM.
02-03-09, 08:53 PM
#3
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Re: Disney considering raising Blu-ray prices because its a premium product
Disney has gone back and fourth between raising and lowering catalog prices on BD titles since the format started. Some will MSRP for $29.99 others $34.99 and others $39.99.
02-03-09, 09:01 PM
#4
DVD Talk Legend
Re: Disney considering raising Blu-ray prices because its a premium product
They definitely made a turn in the wrong direction in 2008. Higher catalog prices, less catalog releases...I guess they're trying to build that momentum - in the wrong direction.
I'm really starting to enjoy my Netflix account. I've already dodged 6-7 releases I might have blind bought, but was happy I didn't after renting. Looks like I will just rent Disney's stuff as well unless it's a must have title for me.
I'm really starting to enjoy my Netflix account. I've already dodged 6-7 releases I might have blind bought, but was happy I didn't after renting. Looks like I will just rent Disney's stuff as well unless it's a must have title for me.
02-03-09, 09:13 PM
#5
DVD Talk Legend
Re: Disney considering raising Blu-ray prices because its a premium product
This is old news to me, but it's disappointing to hear them acknowledge it.
This is why I didn't buy the version of Wall-E with the digital copy, even though it was discounted to the same price as the version without it.
This is why I didn't buy the version of Wall-E with the digital copy, even though it was discounted to the same price as the version without it.
02-03-09, 10:07 PM
#6
DVD Talk Legend
Re: Disney considering raising Blu-ray prices because its a premium product
BTW, aren't they selective enough as it is? They have yet to release anything live-action made before the 1990s, and the relatively few Miramax catalog titles they've put out are the most mainstream movies.
Unless they're just talking about stuff like Tinkerbell and The Cheetah Girls, I'd hate to see what being more selective would mean.
Unless they're just talking about stuff like Tinkerbell and The Cheetah Girls, I'd hate to see what being more selective would mean.
02-03-09, 10:10 PM
#7
Re: Disney considering raising Blu-ray prices because its a premium product
It sucks but they're just following the trend. The Pineapple Express + Digital Copy is $26.99 at Amazon. Sleeping Beauty + DVD is $23.99. It goes without saying but... DVD >>>>>>> Digital Copy.
I don't blame Disney. They're better than Sony and Fox but that ain't saying much.
I don't blame Disney. They're better than Sony and Fox but that ain't saying much.
02-03-09, 11:20 PM
#10
DVD Talk Hall of Fame
Re: Disney considering raising Blu-ray prices because its a premium product
I support paying a little more when an actual DVD version is included, but definitely not a digital copy.
02-04-09, 12:08 AM
#11
DVD Talk Limited Edition
Re: Disney considering raising Blu-ray prices because its a premium product
hey Disney want to make money?
open your vault and make your catalog regularly available
0 supply = 0 sales
raising your prices in this economy/climate isn't going to help your cause
open your vault and make your catalog regularly available
0 supply = 0 sales
raising your prices in this economy/climate isn't going to help your cause
02-04-09, 12:29 AM
#12
Re: Disney considering raising Blu-ray prices because its a premium product
02-04-09, 01:52 AM
#14
Re: Disney considering raising Blu-ray prices because its a premium product
02-04-09, 02:16 AM
#15
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Re: Disney considering raising Blu-ray prices because its a premium product
I agree. Having a standard DVD included is pretty cool when you have little kids and don't want them using your Blu-ray player but don't mind them screwing with one of your many DVD players.
02-04-09, 07:07 AM
#16
DVD Talk Limited Edition
Re: Disney considering raising Blu-ray prices because its a premium product
Wow. I thought this was an old thread from 2008, but no.
Blu-ray prices are already too high across the board, even at Amazon. When a BOGO sale comes up there or at Columbia House, etc., there are deals to be had, otherwise not.
I keep adding titles to my Blu-ray wish list as they are announced. My wish list continues to expand, while my actual BD collection grows much slower.
I'm in no hurry to upgrade to Blu at the current market prices. I can (and will) wait them out.
Blu-ray prices are already too high across the board, even at Amazon. When a BOGO sale comes up there or at Columbia House, etc., there are deals to be had, otherwise not.
I keep adding titles to my Blu-ray wish list as they are announced. My wish list continues to expand, while my actual BD collection grows much slower.
I'm in no hurry to upgrade to Blu at the current market prices. I can (and will) wait them out.
02-04-09, 07:19 AM
#17
DVD Talk Godfather
Re: Disney considering raising Blu-ray prices because its a premium product
It was an early DVD title that was put back into the vault fairly quickly. I offloaded mine fairly easy a few months back when the Blu was announced.
02-04-09, 08:14 AM
#19
Re: Disney considering raising Blu-ray prices because its a premium product
IF they do this, I won't mind skipping their BDs then. Plenty of other choices out there.
I did like the part of the article where they said they may cut costs on DVD marketing, production and distribution.
2009 is the "breakout" year, the year BD is supposed to hit the mainstream....and you might raise prices on software?
I did like the part of the article where they said they may cut costs on DVD marketing, production and distribution.
2009 is the "breakout" year, the year BD is supposed to hit the mainstream....and you might raise prices on software?
02-04-09, 08:15 AM
#20
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Re: Disney considering raising Blu-ray prices because its a premium product
This is an interesting one for me. I think it would be a step backward for the format. Blu-ray needs to maintain pricing to give the studios the profit edge that has them in the game in the first place, but raising prices- especially now- is going to present a big adoption roadblock. Meanwhile, if I'm honest with myself, when I think about my Beauty and the Beast and Wall-E sets, for example... wow, do I feel like I'm getting a steal for the prices I paid for them! For the adoption rate, though, I think Disney can't do this. They just have to decide what they want Blu-ray to be: the replacement for DVD or the replacement for LD.
02-04-09, 08:28 AM
#21
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Re: Disney considering raising Blu-ray prices because its a premium product
+1
I wish more studios offered this on certain titles. It would be nice if they made both options available (standard blu-ray and a BD/DVD combo version). But I'm willing to pay a few bucks more for a DVD.
I wish more studios offered this on certain titles. It would be nice if they made both options available (standard blu-ray and a BD/DVD combo version). But I'm willing to pay a few bucks more for a DVD.
02-04-09, 09:22 AM
#22
DVD Talk Godfather
Re: Disney considering raising Blu-ray prices because its a premium product
Not to mention, to prevent the selling/offloading of the extra DVD, it could be completely bare bones compared to the actual DVD release.
02-04-09, 09:26 AM
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02-04-09, 09:47 AM
#24
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Re: Disney considering raising Blu-ray prices because its a premium product
What Disney should do is offer a rebate inside the BD case that allows anyone to send them a check for $5 and get a DVD in return. Don't force us to pay $5 more for the privilege of buying a Blu-ray + DVD Combo set when some of us don't want it. But, I'm sure its cheaper just to force us to spend $5 across the board for a .35 cent DVD thrown inside a paper sleeve.
02-04-09, 09:49 AM
#25
Senior Member
Re: Disney considering raising Blu-ray prices because its a premium product
If Disney is looking to recoup loss, perhaps they could stop selling deluxe DVD sets altogether and keep, (or lower) the price on BD/DVD combos. They could still produce "bare bones" movie only DVDs, ($15-$20), but reserve the extras for the deluxe set with the BD included, ($25-$30).
Then, casual, non-adopters would still buy the Disney films they want, collectors/completists would buy the deluxe sets, and Disney would save on their bottom line.
Then maybe, eventually . . . those who haven't yet stepped up and bought a BD player may become more curious just because they now have BDs in their house.
A fairy tale, I know . . .
Then, casual, non-adopters would still buy the Disney films they want, collectors/completists would buy the deluxe sets, and Disney would save on their bottom line.
Then maybe, eventually . . . those who haven't yet stepped up and bought a BD player may become more curious just because they now have BDs in their house.
A fairy tale, I know . . .
