DVDs:While cinema attendances continue to rise, there has been a significant slump in the sales of DVDs, while the high-definition Blu-ray format has failed to make more than a dent on the market. The downturn is illustrated by the sheer number of sales and special offers promoted by online retailers.
The trends have reversed the tradition of more than a decade, in which DVD sales, not cinema admissions, were the driving force of profitability for productions. Sales for new releases in the saturated DVD market have dropped by at least 15 per cent this year.
“There is no more downside protection for producers in the video marketplace,” says Ingo Vollkammer, co-chief executive of Leomax Entertainment, an independent production and film finance company. “Movies today need to be theatrically driven.”
Kevin Misher, a former executive at Universal and Sony and now a leading independent producer, agrees. “Anything that can drive the audience to the cinemas has an easier time getting made now,” says Mishe.
The market for arthouse and independent productions on DVD has shrunk too. "The sweat factor these days is pretty high for anything that isn't a sure sell on screen," says Marc Abraham, director of the recent Flash of Genius, a box office failure.
