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Hollywood innovates - DECEMBER 2017 - Media Play News
December 2017 « www.HomeMediaMagazine.com          3
                        PUBLISHER & EDITORIAL DIRECTOR
                      Thomas K. Arnold ❙ tarnold@questex.com

                                      EDITOR IN CHIEF
                     Stephanie Prange ❙ sprange@questex.com
                                                                                                                 OPENING SHOTS                            BY THOMAS K. ARNOLD, PUBLISHER

                                                                                                          What a Long, Strange Trip
                                    MANAGING EDITOR
                         John Latchem ❙ jlatchem@questex.com

                                         EDITORIAL

                                                                                                          W
                                        NEWS EDITOR
                    Erik Gruenwedel ❙ egruenwedel@questex.com
                                                                                                                          ith a nod to the Grateful Dead,
                                    GRAPHIC DESIGNER
                         David Kowalsky ❙ davedmk@cox.net                                                                 what a long, strange trip it’s been —
                                 CONTRIBUTING EDITOR                                                                      both for Home Media Magazine and
                           Mike Clark ❙ mclark47@comcast.net                                                              for the readers and advertisers who
                                                                                                                          have made this nearly 40-year ride
                                          RESEARCH                                                        possible.
                           MARKET RESEARCH DIRECTOR                                                         The magazine you are reading began life in August
                         John Latchem ❙ jlatchem@questex.com
                                                                                                          1979 as Video Store Magazine, a monthly publication
                                                                                                          catering to the new breed of video rental stores that
                                     DIGITAL MEDIA                                                        were springing up to take advantage of a brash new
                                    ONLINE MANAGER
                         John Latchem ❙ jlatchem@questex.com                                              business that allowed consumers to watch movies at
                                                                                                          home, whenever they wanted to, instead of having
                                                                                                          to wait for a rare TV airing.
                             ASSOCIATE PUBLISHERS
                                                                                                            It was a chaotic beginning — the studios began
                      Stephanie Prange ❙ sprange@questex.com
                      John Boezinger ❙ jboezinger@questex.com                                             issuing movies on videocassette with the intention
                                                                                                          of selling them to consumers. Retailers had other
                                       ADVERTISING
                                                                                                          ideas, and began snapping up new releases and rent-        as they say.
                                  ACCOUNT EXECUTIVE                                                       ing them to the public, generating huge profits. The         Home Media Magazine was there for you, covering
                                   John Boezinger                                                         studios, envious of all this cash, challenged retailers’   the news and telling you what it meant.
                         949-413-9311 ❙ jboezinger@questex.com
                                                                                                          right to rent until they were shot down by the First         As both distribution channels and entertainment
                       For reprints, call Wright’s Media: 877-652-5295                                    Sale doctrine to U.S. copyright law.                       options proliferated, studios wisely realized that the
                   For List Rental, call Anthony Carraturo, MeritDirect LLC,                                Video Store Magazine was there for you, covering         traditional divide between the computer and the TV
                             914-368-1083, ac@meritdirect.com
                                                                                                          the news and telling you what it meant.                    was fast eroding. They began selling their content
                                                                                                            Fast-forward two decades. The video rental mar-          digitally over the Internet, and after a few false starts
                                       PRODUCTION                                                         ket, after many years of explosive growth, had ma-         now have a common mechanism in Movies Any-
                                PRODUCTION DIRECTOR
                                          Hal Garstein                                                    tured, and the studios finally got their wish with the     where that feeds directly into the consumer’s primary
                               PRODUCTION SPECIALIST                                                      emergence of DVD — a disruptive product (before            wants of convenience and simplicity.
                                     Lynn Erdahl                                                          “disruption” was even in our lexicon) that turned            Home Media Magazine was there for you, covering
                          212-895-8499 ❙ lerdahl@questex.com
                                                                                                          consumers from renters into buyers and gave Hol-           the news and telling you what it meant.
                                                                                                          lywood its biggest cash cow in history. The money            For nearly 40 years, we’ve been partners. We’ve
                                             OFFICE                                                                                                                  shared the ups, the downs, the victories and the chal-
                                                                                                          generated from DVD sales surpassed the domestic
                                  714-759-4661
                      homemediamagazine@questex.com                                                       box office in 2001 and home entertainment execu-           lenges, the high hurdles and the occasional stumbles.
            4590 MacArthur Blvd., Suite 500 • Newport Beach, CA 92660                                     tives all of a sudden found themselves a part of the       We’ve been your voice — and your historians. And
                                                                                                          movie greenlighting process.                               we thank you for your many years of support.
                                             CREDIT
                         CREDIT/COLLECTIONS DIRECTOR
                                                                                                            Video Store Magazine was there for you, covering           This is the last issue of Home Media Magazine to
                                        Ron Wright Sr.                                                    the news and telling you what it meant.                    be published by our longtime owners, Questex LLC.
                                                                                                            In their haste to develop a high-definition succes-      Special thanks goes to the leadership team for 12
                           AUDIENCE DEVELOPMENT
                                                                                                          sor to DVD, Hollywood and the tech community               years of committed oversight, passion about what
      For subscriptions, please go online to www.homemediamagazine.com
                For subscription questions and/or address changes                                         momentarily forgot the importance of compromise            we do, and integrity.
               email jboezinger@questex.com or call 949-413-9311                                          and rushed to market two competing formats. A                Personally, I have covered the industry for nearly
        For current single copy, back issues or CD-ROM, call 949-413-9311
                                                                                                          bruising format war resulted that stymied growth.          30 years — I began writing for Video Store Magazine
                      AUDIENCE DEVELOPMENT MANAGER                                                          What by then had become Home Media Magazine              back in 1988 — and intend to continue on. The long,
                        Debbie Gullian ❙ dgullian@questex.com                                             was there for you, covering the news and telling you       strange trip is not yet over.
                                                                                                          what it meant.
                                                                                                            Blu-ray Disc ultimately triumphed, but by then
                                                                                                          another disruptive force had emerged: Netflix, which
                                                                                                          quickly outgrew its disc rental-by-mail roots and
                                     PRESIDENT & CEO
                                        Kerry C. Gumas
                                                                                                          began letting consumers “stream” movies over the
                                                                                                          Internet for a monthly subscription fee. The studios
© 2017 Questex LLC All rights reserved. No part of this publication may be reproduced or transmit-        laughed at such a foolhardy business model — but           Thomas K. Arnold’s email address is tarnold@questex.com
ted in any form or by any means, electronic or mechanical including by photocopy, recording
or information storage and retrieval system, without permission in writing from the publisher.
                                                                                                          Netflix had the last laugh, all the way to the bank,
Authorization to photocopy items for internal or personal use, or the internal or personal use of
specific clients, is granted by Questex LLC for libraries and other users registered with the Copyright
Clearance Center, 222 Rosewood Dr., Danvers, MA 01923 phone: 978-750-8400 fax 978-750-4470;
call for copying beyond that permitted by Sections 107 or 108 of the U.S. Copyright Law. For those
not registered with the CCC, call Wright’s Media for permission request: 877-652-5295.
                                       Printed in the U.S.A.
Hollywood innovates - DECEMBER 2017 - Media Play News
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                                                                                                      creature known as Pennywise the Dancing Clown.
                                                                                       The Losers’ Club Get up close and personal with the teenage stars of IT as they
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Hollywood innovates - DECEMBER 2017 - Media Play News
For exclusive and expanded content, go to www.HomeMediaMagazine.com                               5

               FROM THE EDITOR                                BY STEPHANIE PRANGE, EDITOR IN CHIEF

       Studios Will Innovate or Die

                                                I
                                                    n this issue produced on the eve of the        Anywhere looks to be the killer app for            consumers, technology, storytelling, all of it
                                                    annual Consumer Electronics Show in            digital ownership.                                 is changing at the same time and that can be
                                                    Las Vegas, we catalog the many in-               Consumers also want to access the latest         disconcerting — and it can also be exciting,”
                                                novative moves the studios are making as           technology, and studios are responding.            Jim Wuthrich, president of the Americans
                                                consumer tastes and habits change.                 They are launching virtual and augmented           and global strategy at Warner Bros. Home
                                                  Consumers want to be able to access mov-         reality products that expand the very defini-      Entertainment, recently told me.
                                                ies they’ve bought digitally or physically on      tion of home entertainment. They are also            Scary and exciting, indeed! That’s always
                                                all of their devices, anywhere they are. Enter     putting technology behind movie extras,            been what the home entertainment busi-
                                                Movies Anywhere, the digital locker service        linking to the web to expand the experience        ness is about, and the industry will continue
                                                launched in October with support from five         of a film through Google Maps and other            to innovate its way into the future.
       «AS THE ONLINE SERVICES GET              of the major studios and key digital retailers     online sources.
        INTO THE STUDIO BUSINESS,               iTunes, Amazon Video, Google Play and                With Netflix and Amazon, among other
         THE STUDIOS ARE GETTING                Vudu. Movies Anywhere has gotten off to            online behemoths, getting into the pro-
         INTO THE ONLINE SERVICE                a great start, and has adapted to consumer         duction business themselves, studios such
                MARKET.»                        feedback about sorting their libraries and         as Disney are looking to launch their own          Stephanie Prange’s email address is sprange@questex.com
                                                other functionality. Recently, I used the          digital services to compete. As the online
                                                service to watch a film on my big-screen           services get into the studio business, the
                                                TV that I didn’t have on disc and the              studios are getting into the online service
                                                experience was seamless. My daughter at            market.
                                                college has used the service as well, to access      The home entertainment business is, and
                                                titles that we have in our home library. If        has always been, fluid.
                                                my experience is any example, then Movies            “Business models, the customer base,

       IN THIS ISSUE                        DECEMBER 2017 » VOL. 39 » NO. 12                                                                                              ON THE WEB
                                                                                                                                                                  www.Homemediamagazine.com

DEPARTMENTS                                                     FEATURES
FINAL CUT » 6                                                   COVER STORY » 11
Disney Acquiring Fox Studio Assets                              Hollywood Innovates
for $52.4 Billion                                               As technology advances, new formats and distribution channels continue to proliferate. This
The Walt Disney Co. Dec. 14 announced it is acquiring           special section looks at some of the highlights of 2017 — and provides a glimpse of what is to   ■ NEW REVIEWS
21st Century Fox’s film and television studios, cable           come in 2018 and beyond.                                                                         ❯ Dunkirk Blu-ray (Warner)
entertainment networks and international TV busi-                                                                                                                ❯ Despicable Me 3 Blu-ray (Universal)
nesses in a massive deal.                                                                                                                                        ❯ The Hitman’s Bodyguard Blu-ray
                                                                                                                                                                      (Lionsgate)
FINAL CUT » 7                                                                                                                                                    ❯ The Crown: Season 1 Blu-ray
Redbox Launches Digital Service                                                                                                                                       (Sony Pictures)
Redbox on Demand lets consumers digitally                                                                                                                        ❯ Election Blu-ray (Criterion)
purchase or rent movies and TV shows from the                                                                                                                    HomeMediaMagazine.com/Reviews
Redbox website and other platforms.

NEWS » 8                                                                                                                                                                  ONLINE TOP 5
                                                                                                                                                                  www.Homemediamagazine.com
‘Variety’ Hall of Fame Honors Home
Entertainment Industry Leaders
The 37th Variety Press Play Home Entertainment                                                                                                                   MOST-READ HEADLINES
& Digital Hall of Fame took place Dec. 5.                                                                                                                        Weeks of Nov. 12 - Dec. 10
                                                                       Hollywood
RESEARCH » 19                                                                                                                                                         Top 50 Movers & Shakers of
‘Despicable Me 3’ Debuts at No. 1                                       innovates                                                                                     Home Entertainment — 2017
Universal’s animated hit Despicable Me 3 easily                                                                                                                   2   Redbox Selling Digital Movie
debuted at No. 1 on the home video sales charts                                                                                                                       Codes
the week ended Dec. 9.                                                                                                                                            3   Netflix Surprised by Download
                                                                                                                                                                      Use Among Subs
Week Ended Dec. 9 Top Sellers/Blu-ray » 19                                                                                                                        4   Disney Suing Redbox For Selling
Week Ended Dec. 2 Top Sellers/Blu-ray » 20                      YEAR IN REVIEW » 18                                                                                   Digital Movie Codes
Week Ended Nov. 25 Top Sellers/Blu-ray » 20                     In 2017, Home Entertainment’s Mantra was ‘Keep on Swimming’                                       5   Vudu Pushing Digital Movie
Week Ended Nov. 18 Top Sellers/Blu-ray » 20                     As platforms and distribution channels proliferated, studios tried to maximize digital as well        Cards at Walmart for the Holidays
Digital Sales Snapshot » 21                                     as disc sales.                                                                                                           Source: Google Analytics
Hollywood innovates - DECEMBER 2017 - Media Play News
6
    FINAL CUT                                                                                                                                                           December 2017 » www.HomeMediaMagazine.com

                WHAT’S HOT IN HOME ENTERTAINMENT
    Disney Acquiring Fox Studio Assets for $52.4 Billion
    BY ERIK GRUENWEDEL                            Studios. Disney would also acquire         2012. Fox had retained the rights           syndication giant Endemol Shine             “The acquisition of this stellar

    T
         he Walt Disney Co. Dec. 14               James Cameron’s “Avatar” fran-             to the 1977 original Star Wars in           Group.                                    collection of businesses from Fox
         announced it is acquiring                chise as well, having already part-        perpetuity.                                   Disney would become the ma-             reflects the increasing consumer
         21st Century Fox’s film and              nered with the filmmaker to cre-             TV units include 20th Century             jority owner of Hulu and Hulu             demand for a rich diversity of en-
    television studios, cable enter-              ate “Avatar”-                                                 Fox Televi-              TV. The transaction also includes         tertainment experiences that are
    tainment networks and interna-                themed at-                                                    sion, FX Pro-            international properties such as          more compelling, accessible and
    tional TV businesses in a massive             tractions at                                                  ductions and             Star India and Fox’s 39% owner-           convenient than ever before,” Iger
    deal worth $52.4 billion in stock.            the Walt Dis-                                                 Fox21.                   ship of satellite TV operator Sky         said in a statement.
      Under the deal, Disney will                 ney World                                                       Disney will            in Europe. If Fox completes its             The transaction must clear reg-
    acquire 20th Century Fox (in-                 Resort       in                                               also acquire             acquisition of Sky prior to the           ulatory hurdles — not a sure thing
    cluding 20th Century Fox Home                 Florida.                                                      FX Networks,             closing of the transaction, Disney        considering the Department of
    Entertainment), Fox Searchlight                 In addition,                                                National                 would assume 100% ownership of            Justice’s recently filed lawsuit to
    Pictures and Fox 2000.                        Disney      for                                               Geographic               Sky, including outstanding debt.          block the AT&T/Time Warner
      With the deal, movie rights to              the first time                                                Partners, Fox              Disney CEO Bob Iger will re-            merger.
    Marvel Comics properties such                 would have                                                    Sports Re-               main in his position, including             Fox corporate retains control of
    as the “X-Men,” “Fantastic Four”              full distribution rights over the          gional Networks and Fox Net-                chairman of the board, through            Fox Broadcasting network and
    and “Deadpool” franchises will                “Star Wars” films since its $4 bil-        works Group International, in               2021. Iger was supposed to retire         stations, Fox News, Fox Business,
    return to Disney-owned Marvel                 lion acquisition of Lucasfilm in           addition to Hulu, Tata Sky and              for the third time in July 2019.          FS1, FS2 and Big Ten Network.

    DOJ Challenges AT&T/Time Warner Merger in Court                                                                                                                                         PEOPLE
                                                                                                                                                                                                – COMPILED BY HOME MEDIA STAFF
    BY ERIK GRUENWEDEL                            said in a statement.                       online video distributors and would         affordable, innovative, interactive

    T
          he United States Department of           A trial date of March 19 has                   have the ability to charge more        and mobile, and called the lawsuit        ■ DISH NAMES SLING TV’S ERIK
          Justice Nov. 20 filed an antitrust      been set by Judge Richard                          for Time Warner’s popular           “a radical and inexplicable depar-        CARLSON NEW CORPORATE CEO
          lawsuit to block AT&T’s proposed        Leon — who was appoint-                              networks and take other           ture from decades of antitrust prec-        Dish Network Dec. 5 announced
    $84.5 billion acquisition of Time Warner.     ed to the U.S. District Court                        actions to discourage fu-         edent.”                                   the promotion of COO Erik Carlson
      “It would mean higher monthly               for the District of Columbia                         ture competitors from en-          “We see no legitimate reason for         to CEO, replacing Charlie Ergen, who
    television bills and fewer of the new,        in 2001 by President                                         tering the market.        our merger to be treated differently,”    remains chairman of the board while
    emerging innovative options that              George W. Bush.                                               David       McAtee,      McAtee said.                              focusing on the satellite operator’s
    consumers are beginning to enjoy,”             The    government                                           senior     EVP    and      Time Warner would reportedly re-         wireless initiatives.
    assistant attorney general Makan Del-         contends the combined company could        general counsel at AT&T, said the           ceive a $500 million fee from AT&T if       A 20-year executive with Dish,
    rahim of the DOJ’s antitrust division         impede “disruptive competition” from       merger would make television more           the merger isn’t finalized by April 22.   Carlson most recently headed the
                                                                                                                                                                                   company’s online television service,
                                                                                                                                                                                   Sling TV, following the departure of
                                                                                                                                                                                   founder/CEO Roger Lynch.

    FCC Repeals Net Neutrality Regulations After Contentious Debate                                                                                                                  Carlson leads a revamped corpo-
                                                                                                                                                                                   rate structure, with Warren Schlicht-
    BY JOHN LATCHEM                               or state regulation.”                      other concerns.                             urged Pai to delay the motion. The        ing upped to EVP and group presi-

    T
          he Federal Communications                Pai contends the Internet has              Netflix CCO Ted Sarandos said regu-        vote actually was put on hold for         dent of Sling TV. Schlichting was
          Commission Dec. 14 repealed             grown into a global information and        latory changes would largely hurt the       about 10 minutes, when the meeting        formerly EVP of marketing, program-
          Obama-era net neutrality provi-         e-commerce superhighway because            SVOD pioneer’s upstart competitors.         room was evacuated due to security        ming and media sales. He retains
    sions by a party-line 3-2 vote, with          of minimal regulation.                      Just prior to the vote, some lawmakers     concerns.                                 oversight of the Dish media sales and
    chairman Ajit Pai and the two other            “The government shouldn’t be in                                                                                                 programming departments.
    Republican members supporting the             the business of picking winners and                                                                                                John Swieringa succeeds Carlson
    rollback.                                     losers in the Internet economy,” Pai                                                                                             as COO, overseeing all operational
      The FCC in 2015, while controlled           said before the vote. “We should have      Steve Beeks Leaving Lionsgate                                                         departments supporting Dish Net-
    by Democrats, voted to regulate the           a level playing field and let consumers                                                                                          work, Sling TV and wireless groups,
    Internet as a utility under Title II of the   decide who prevails.”                      BY ERIK GRUENWEDEL                          joined Lionsgate in 2003 with the ac-     including customer support centers,
    Communications Act of 1934.                    Pai’s efforts had been met with vo-        PEOPLE Lionsgate co-COO and mo-            quisition of Artisan Entertainment,       the in-home installation workforce
      Pai’s plan restores the Internet to         cal opposition in the months lead-         tion picture group co-president             where he had been a senior execu-         and the IT department.
    pre-regulatory days — a time he said          ing up to the vote. Advocates of the                            Steve         Beeks,   tive since 1998.                            Chief technology officer Vivek
    harbored light regulation (under Title I      2015 policy, which included myriad                              who      oversees        He was one of the architects of Lion-   Khemka joins Carlson’s leadership
    of the Communications Act).                   technology companies such as Net-                               the       studio’s     sgate’s $1 billion annual home enter-     team, supporting Dish Network, Sling
      In a recent speech, Pai pointed to          flix, Hollywood activists and civil lib-                        home entertain-        tainment operation, and he helped         TV and the wireless business. Khem-
    the Telecommunications Act of 1996,           erty groups, claimed giving Internet                            ment division, is      grow the company’s 16,000-title film      ka’s team is responsible for technol-
    which he said was intended “to pre-           Service Providers unfettered control                            leaving the com-       and television library.                   ogy strategy, product management,
    serve the vibrant and competitive             over pricing and bandwidth speed                                pany at the end          Most recently, Beeks spearheaded        engineering, product development,
    free market that presently exists for         would hurt consumers and smaller               Steve Beeks     of 2017.                business and strategic initiatives for    supply chain management, broadcast
    the Internet … unfettered by federal          over-the-top video services, among                               Beeks formally        the motion picture group.                 operations and OTT delivery.
Hollywood innovates - DECEMBER 2017 - Media Play News
www.HomeMediaMagazine.com « December 2017                                                                                                                            FINAL CUT                                                7

Redbox Launches Digital Service                                                                                                       SHORT TAKES                                          – COMPILED BY HOME MEDIA STAFF

BY STEPHANIE PRANGE                                           number of titles, including more catalog and TV.                ■ Q3 HOME ENTERTAINMENT                     ■ WALMART CHANGING LEGAL NAME
 DIGITAL Rental-kiosk company Redbox Dec. 13 rolled             “We’ve got 700 slots, about 150 to 200 titles that            SPENDING UP 3%, PER DEG                       Underscoring its increased focus on
out Redbox on Demand in public beta. The service,             we offer through our kiosk at any one point,” he                 The latest report from DEG: The            digital retail, Walmart Feb. 1 will drop
which CEO Galen Smith said complements its exist-             said. “Obviously, digitally you don’t have those                Digital Entertainment Group on con-         “Stores” from its legal Wal-Mart Stores
ing physical-disc rental kiosks, allows consumers to          same size constraints.”                                         sumer home entertainment spending           Inc. name, changing it to Walmart Inc.
digitally purchase or rent movies and TV shows. Pric-           Smith downplayed competition from subscription                indicates a 2.85% uptick in the third
ing for new-release video-on-demand rentals starts as         streaming services such as Netflix and Amazon, not-             quarter compared with the same pe-          ■ BEST BUY Q3 SALES REBOUND
low as $3.99 for 48 hours, with elec-                                            ing that the transactional service gets      riod a year ago, as well as a 2.75%           Best Buy reported same-store do-
tronic sellthrough transactions as low                                           new-release movies much sooner.              increase in the first nine months of the    mestic entertainment sales increased
as $9.99. Catalog VOD starts at $1.99.                                             The announcement comes on the              year. Electronic sellthrough was up 7%      4.1% in the quarter ended Oct. 28. This
  The move employs a different                                                   heels of a Nov. 30 lawsuit filed against     in the third quarter and subscription       compared with a 9.4% decline in the
strategy from the Redbox-Verizon                                                 Redbox by The Walt Disney Co. over           streaming was up 17.3%.                     previous-year period.
joint venture that shuttered in 2014.                                            claims the kiosk vendor is illegally sell-
  “This is focused on transactional                                              ing digital codes to the studio’s films.     ■ DIRECTV NOW REACHES 1M SUBS               ■ OCTOBER GAME SALES DOWN 11%
video-on-demand and electronic                                                   Redbox in October quietly began sell-         DirecTV Now, AT&T’s standalone on-           Total video game spending in
sellthrough, whereas the other prod-                                             ing the codes — typically included           line television service priced from $35     October dropped 11% to $825 million,
uct previously was a subscription                                                in Blu-ray Disc releases — through           monthly, has reached 1 million subscrib-    from $932 million in the previous-year
product,” said CEO Galen Smith. “It was a joint               its website. The suit, filed in U.S. District Court in          ers — less than a year after launching.     period, according to The NPD Group.
venture, and we are doing this on our own. It’s a natu-       Los Angeles, alleges copyright infringement, breach                                                         Gains in hardware spending (10%) to
ral extension and evolution of the Redbox business.”          of contract, false advertising and unfair competition,          ■ PRIME APP ON APPLE TV                     $238 million were offset by declines in
  Redbox on Demand is available on the Red-                   and seeks $150,000 in damages per statutory award,               Amazon Prime Video can now be              software and accessories.
box website, Android and iOS-enabled devices,                 according to the complaint.                                     officially viewed on Apple TV via a
Chromecast, LG and Samsung smart TVs, and                       Redbox on Demand includes content from War-                   branded app.                                ■ GAMESTOP Q3 PROFIT UP 17%
Roku. More devices will be added throughout the               ner, Paramount, Lionsgate, Sony, Fox and Universal                                                            Strong demand for collectibles and
beta, according to the company.                               — not Disney. It also does not yet support Movies               ■ AMAZON INKS AMC ABROAD                    new video games contributed to
  Redbox is leveraging its wide consumer base to              Anywhere, the digital locker service led by Disney.              Amazon Prime Video has secured             GameStop reporting third-quarter net
launch the digital service.                                     As far as the physical disc rental kiosk business,            foreign rights to original series from      income of $59.4 million, up almost
  “We’ve got over 90 million touchpoints today — 44           Redbox continues to expand. The company added                   AMC Studios — the proprietary pro-          17% from income of $50 million dur-
million email addresses, 35 million app downloads             more than 1,700 kiosks in 2017 and is looking to                duction unit of AMC Networks.               ing the previous-year period. Revenue
between iOS and android, 8 million text club, 23              adding more in 2018.                                                                                        increased 1.5% to $1.98 billion.
million people in our loyalty program — so that is a            “I think it’s been a fantastic year for us overall,” Smith    ■ X1 ADDS EPIX, IHEARTRADIO
really broad and massive reach,” Smith noted.                 said. “You know we used to have very long windows                Epix has announced an agreement            ■ FYE CHAIN WIDENS Q3 LOSSES
  The digital service also allows Redbox to offer a greater   and those have shortened with a couple of the players.”         with Comcast Cable affording the              Trans World Entertainment’s For Your
                                                                                                                              cabler’s X1 subscribers in early 2018       Entertainment (fye) retail unit posted an
                                                                                                                              access to the multichannel dis-             operating loss of $7.8 million in the quar-
                                                                                                                              tribution platform. Comcast also            ter ended Oct. 28, up 56% from a loss
Black Friday Store Traffic Declines; Sales, E-commerce Surge                                                                  added music streaming platform
                                                                                                                              “IHeartRadio” to its X1 set-top box.
                                                                                                                                                                          of $5 million during the previous-year
                                                                                                                                                                          period. Revenue declined almost 17% to
BY ERIK GRUENWEDEL                                            of $862 on holiday purchases this year, compared                                                            $52.1 million, from $62.4 million.
 RETAIL The number of consumers cutting short                 with $752 in 2016. Yet, Dec. 22 — not Nov. 24 ■ SLING TV ADDS CHANNELS
Thanksgiving dinner to shop and frequent stores               (Black Friday) — ranked as the top-shopping day of    Sling TV increased its premium chan-                  ■ U.K. FIRM BUYING REGAL
the day after on Black Friday dropped slightly, with          the holiday season, according to survey respondents. nel selections with add-on options                     CINEMAS
RetailNext and ShopperTrack reporting Black Friday                                                                            CuriosityStream, UP Faith & Family,           Regal Cinemas, the No. 2 theatrical
store-traffic declines of 4% and 1.6%, respectively.                                                                          and Pantaya. Sling TV has also expand-      chain in the U.S., has entered into a $3.6
Online shopping over the retail holiday period surged                                                                         ed its Spanish-language offerings with      billion definitive merger agreement
— up more than 18%, according to Adobe Systems.
  The nation’s largest video game retailer, GameStop,                 OBITUARY                                                the regional “Centroamérica” package.       with London-based Cineworld Group.

                                                                                                                              ■ VERIZON, NFL INK $2B DEAL                 ■ CINEMARK BOWS TICKET SERVICE
was open on Thanksgiving for the first time. Walmart,
Best Buy and Amazon again drove high-profile price
                                                              EAA’S HEATHER HINKEL PASSES AWAY                                 Verizon signed a five-year agreement         Cinemark, the nation’s third-largest
discounting across product categories — including             BY STEPHANIE PRANGE                                             reportedly worth more than $2 billion       theatrical chain, has launched a pro-

                                                              H
home entertainment (discounted DVD/Blu-ray Disc                      eather Hinkel, executive director of the Entertain-      for exclusive mobile rights to NFL games.   prietary subscription ticket service,
movies), but with measured expectations.                             ment AIDS Alliance, passed away Dec. 1 from com-                                                     dubbed Cinemark Movie Club, which
  “Is [Black Friday] the mayhem that it might have                   plications due to breast cancer. She was 58.             ■ CINEDIGM CLOSES CHINESE DEAL              offers access to one 2D movie ticket
been eight or 10 years ago? I think that world is gone,”       “Heather has been a steady force and the heart of this          Cinedigm formally closed a $30 mil-        per month, in addition to 20% off con-
Walmart CEO Greg Foran told The Wall Street Journal.                              organization for nearly two decades,”       lion investment from China-based Bison      cessions, for $8.99 per month.
  Michael Pachter, media analyst with Wedbush                                     wrote EAA president Sue Procko in           Capital, which now owns a majority of
Securities in Los Angeles, said Best Buy had a suc-                               an email to members. “She worked            the home entertainment distributor‘s        ■ SIMPLIFIED USER EXPERIENCE
cessful Black Friday — again driven by big-screen                                 diligently through the years to raise       outstanding common stock.                   KEY TO ENERGIZING DEVICE SALES
TV sales.                                                                         funds to help those affected by HIV/                                                      With sales of smart-TVs and stream-
  “According to our online checks, Best Buy offered                               AIDS.”                                      ■ NETFLIX LAUNCHES IN GREECE                ing media players apparently soften-
better pricing overall than Amazon between Thanks-                                  Hinkel was honored at the EAA’s Wine,      Netflix Dec. 11 launched local-lan-        ing, consumer electronics manufac-
giving and Sunday, Nov. 26. While pricing remained              Heather Hinkel    Wisdom and Vision awards June 22 for        guage service in Greece featuring con-      turers are simplifying the user experi-
roughly consistent on both sites between Thanksgiv-                               her long service to the organization.       tent and licensed fare (70% dubbed in       ence to energize sales, according to
ing and Saturday, Nov. 25, pricing increased modestly          She is survived by her mother, Margaret Hinkel, her sister,    Greek) priced at €7.99 ($9.37) monthly.     new data from Parks Associates.
on Nov. 26,” Pachter wrote in a Nov. 27 note.                 Dorin Adams, and her brother, David Hinkel, as well as sev-     Content is also available in 4K Ultra HD.
  Gallup found consumers plan to spend an average             eral nieces and nephews. All reside in Reading, Pa.                                                                   – For More, Visit HomeMediaMagazine.com
Hollywood innovates - DECEMBER 2017 - Media Play News
8   NEWS                                                                                                                                                                          December 2017 » www.HomeMediaMagazine.com

    ‘Variety’ Hall of Fame Honors Home
    Entertainment Industry Leaders for 37th Year
    BY STEPHANIE PRANGE                                                                          Leadership Award.                              other side of the camera,” Wuth-             people connect and bring joy, and

    T
         he 37th Variety Press Play                                                                “You know, sometimes the good                rich quipped in accepting the award          that’s pretty cool.”
         Home Entertainment &                                                                    guys finish first, and I’m thrilled            and hailing Sanders as a mentor.               Chris Meledandri, producer and
         Digital Hall of Fame took                                                               that this is happening to Jim,” said             “I’m humbled by those who’ve               CEO of Illumination Entertain-
    place Dec. 5 at the Montage in                                                               Ron Sanders, president of Warner               come before,” Wuthrich said, not-            ment, which created the “Despi-
    Beverly Hills, Calif., with the tra-                                                         Bros. worldwide home entertain-                ing past winners including Warren            cable Me” franchise, among other
    ditional sendups and sentiment                                                               ment distribution, who presented               Lieberfarb, “the father of DVD.”             family content, accepted his award
    about honorees.                          and Walmart online service Vudu                     the award to Wuthrich.                           “When I first came to this busi-           by thanking Universal Studios and
      The event benefitted the charity       were inducted into the Hall of Fame.                  “He’s the kind of superhero that             ness all those years ago, I thought          its home entertainment team and
    City Year.                               Fox innovation Lab was honored                      we love having at Warner Bros.                 I’d be here two years and leave, but         plugging the fact that Dec. 5 was
      Chris Meledandri, producer and         with the Innovation Award, and                      and that we need for this industry,”           now I’ve been here 19 years, and I           the physical street date for Despi-
    CEO of Illumination Entertain-           Eric Berger, EVP of digital for Sony                added Sanders, teeing up a parody              love this business,” he said. “It has        cable Me 3.
    ment; Jim Wuthrich, president of         Pictures Television Networks, and                   of heroes from Justice League with             it all — technology, entertainment             “In volatile times like these,
    the Americas and global strategy for     GM of Crackle, picked up the                        Wuthrich’s face imposed on them.               — and it’s ever-changing. And                when it’s easy to lose one’s way,
    Warner Bros. Home Entertainment;         Deloitte Media & Entertainment                        “Now you know why I’m on the                 the stories we deliver inspire, help         I find it very humbling to remind

    (L-R): Warner’s Ron Sanders presents Jim Wuthrich with his Hall                 (L-R): Fox’s Hanno Basse, Samsung’s Sang Kim, DEG’s Amy Jo Smith, Ericsson’s Mark Russell and Fox’s Danny Kaye celebrated the
    of Fame award.                                                                  Innovation Award for Fox Innovation Lab.
                                       Photo courtesy of Variety/REX/Shutterstock                                                                                                                     Photo courtesy of Variety/REX/Shutterstock

                                                                                    (L-R): Jeremy Verba, VP and GM of Vudu, video games and
    (L-R): Deloitte’s Kevin Westcott and Deloitte Media & Entertain-                media for Walmart.com, with Disney’s Janice Marinelli. Verba                   (L-R): Hall of Fame honoree Chris Meledandri with Variety
    ment Leadership Award winner Eric Berger.                                       accepted the Hall of Fame award for Vudu.                                      co-editor in chief Claudia Eller
                                       Photo courtesy of Variety/REX/Shutterstock                                     Photo courtesy of Variety/REX/Shutterstock                                      Photo courtesy of Variety/REX/Shutterstock
Hollywood innovates - DECEMBER 2017 - Media Play News
www.HomeMediaMagazine.com « December 2017                                                                                                                                   NEWS                         9

(L-R): Disney’s Liz Smith, Paramount’s Brenda Ciccone and Fox’s James Finn.   (L-R): Warner’s Jeff Brown, Home Media Magazine’s Thomas K. Arnold, and honoree Jim Wuthrich of Warner Bros.

myself about the power that we all     sight of the potential of our          impact on stretching the bound-
have to positively affect people’s     films to spread joy, humor and         aries of bringing content to movie
lives,” he said.                       hope, even when people are go-         lovers,” she said, noting its work
  He related the story of Peter, a     ing through unimaginable hard-         on virtual reality and high dynamic
young boy fighting liver cancer,       ships,” he said.                       range, among other technologies.
whose mom wrote the producer to          In presenting the award to the         Danny Kaye, EVP and manag-
tell him how much the boy liked        Fox innovation Lab, Amy Jo             ing director of the Lab, said it was
the “Despicable Me” movies and         Smith, president of DEG: The           created “to help us redefine the
how they made him smile. She           Digital Entertainment Group            next-generation premium con-
asked that a minion be named           and past Hall of Fame honoree,         sumer entertainment experience.”
after her son.                         hailed the “brain trust” at Fox          He and Basse accepted the
  “In Despicable Me 3, the minion      that created it in 2014, including     award on behalf of the studio,
Peter made his debut,” Meledan-        Mike Dunn, Hanno Basse and             with representatives of Lab part-
dri said.                              Danny Kaye.                            ners Samsung and Ericsson.
  “It is vital for us to never lose      “The Lab has really had a real         Janice Marinelli, president of
                                                                              Disney/ABC home Entertain-
                                                                              ment and television distribution,
                                                                              hailed Hall of Fame inductee
                                                                              Vudu, a key player in the cloud-
                                                                              based digital locker service Mov-
                                                                              ies Anywhere.
                                                                                “At Disney, we like to partner
                                                                              with forward-looking retailers,
                                                                              partners who share our commit- (L-R): DEG’s John Powers and Paramount’s Steve Siskind.
                                                                              ment to excellence,” Marinelli
                                                                              said. “Vudu is a terrific example
                                                                              of that type of partner.”
                                                                                Jeremy Verba, VP and GM of
                                                                              Vudu, video games and media
                                                                              at Walmart.com, accepted the
                                                                              award, saying, “Innovation is a
(L-R): Fandango’s Adam Rockmore, Fox Innovation Lab’s Danny Kaye and          team sport, we like to say at Vudu.
Fandango’s Cameron Douglas.                                                   It takes great partners. We have
                                                                              those in our studio partners. We
                                                                              appreciate the trust that you put in
                                                                              us and that you ask of us.”
                                                                                “All of us here share a common
                                                                              vision for a world to be entertained
                                                                              without boundaries,” Berger said
                                                                              in accepting the Deloitte Media
                                                                              & Entertainment Leadership
                                                                              Award. “It’s a time of real change
                                                                              in the landscape, and to achieve
                                                                              that vision requires a dual focus
                                                                              on innovation, both in terms of
                                                                              storytelling and technology.”
                                                                                Leadership requires the “facility
                                                                              to embrace change as a constant
                                                                              variable” and finding out “how
(L-R): Warner’s Jay Reinbold, Home Media Magazine’s Stephanie Prange and      to reinvent order from chaos,” (L-R): Warner’s Ron Sanders and Hall of Fame honoree Jim Wuthrich.
comScore’s Chris Roberts.                                                     he said.                                                                      Photo courtesy of Variety/REX/Shutterstock
Hollywood innovates - DECEMBER 2017 - Media Play News
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                      Blu-ray™ Disc, Blu-ray™ and Ultra HD Blu-ray™ word marks and logos and the 4K Ultra HD™ logo are trademarks of the Blu-ray Disc Association. Ultra HD Premium™ logo is a trademark of UHD Alliance, Inc.   USHEretail.com   © 2017 Universal Studios. All Rights Reserved.
www.HomeMediaMagazine.com « December 2017                                                                                                               11

                                                                            Hollywood
                                                                             innovates

                                  BY ERIK GRUENWEDEL AND STEPHANIE PRANGE

                                  A
                                        s technology advances, new formats and distribu-      innovation and experimentation have become the
                                        tion channels continue to proliferate. Even the       order of the day. In addition to supporting the new,
                                        very definition of content has changed, with mov-     enhanced 4K Ultra HD format with high dynamic
                                  ies and TV shows forced to make room for webisodes,         range, studios are delving into virtual reality — the
                                  Snapchats and Facebook Live streams. YouTubers are          use of computer technology to create a simulated
                                  mobbed like ‘A’-list movie stars; people are consuming,     environment — and augmented reality — in which
                                  and sharing, content on their phones, on their iPads, and   an enhanced version of reality is created by the use of
                                  through their PlayStations.                                 technology to add digital information on an image of
                                    The home entertainment industry, rocked by the            the physical world.
                                  Internet and disrupted by Netflix, hasn’t sat idly by         Here’s a look at some of the highlights of 2017 — and
                                  as the world around it changes. Far from it — indeed,       a glimpse of what is to come in 2018 and beyond.
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wb.com/4KUHD      BATMAN, THE DARK KNIGHT and all related characters and elements are trademarks of and © DC Comics. Special features are not MPAA-rated and may not be Hi-Def or SDH. © 2017 Warner Bros. Entertainment Inc. All rights reserved.
14                                                                                                                                                           December 2017 » www.HomeMediaMagazine.com

                                                         for consumers. It elevates the movie pur-           There have been several improvements in          vision of our filmmakers beyond the theater.”
                                                         chasing, collecting and viewing experience        the service since launch.                            It’s a picture that more clearly adjusts to
                                                         and is simple and easy to use,” said Movies         “Movies Anywhere was built with con-             the consumers’ TV.
                                                         Anywhere GM Karin Gilford.                        sumers in mind to add more value to their            “Scene by scene and even frame by frame,
                                                           It’s an interface that will ultimately make     movie purchases,” Gilford said. “As such,          that movie is being adjusted to be opti-
                                                         digital movie collection seamless, said the       our first priority is responding to custom-        mized to that particular TV,” Kaye said.
                                                         executive, who formerly worked at Com-            er feedback about the product. We have               The Fox Innovation Lab serves as a research
                                                         cast Interactive Media and Yahoo! The             amazing movie fans in Movies Anywhere              hub, demonstrating and testing technologies
                                                         launch comes after several fits and starts,       with large collections. We heard loud and          with consumers throughout the development
                                                         including the stalled UltraViolet digital         clear that they want more control over their       process to obtain qualitative data and hands-
     MOVIES ANYWHERE — A WATERSHED                       locker service and Disney’s launch of its         library. We answered with improved sort            on feedback in order to bring innovative and
     MOMENT FOR DIGITAL MOVIE SALES                      own proprietary service, Disney Movies            capabilities across platforms and we will          premium products to market.
       In what observers are calling a major break-      Anywhere. Observers say the studios               continue to look for ways to help consum-            In addition to premium viewing experi-
     through in getting consumers to buy movies          signed up for Disney’s model because the          ers manage their collections.”                     ences for traditional entertainment, the
     digitally, five of the six major studios — and      technology is superior.                             Consumers have responded well to the             division is also working on new forms of
     four key retailers — joined forces in late 2017       Consumers can download a free Movies            interface, she said.                               entertainment, such as virtual, augmented
     for the launch of Movies Anywhere.                  Anywhere app, create an account and link            “We are seeing strong engagement with            and mixed reality. Its work on virtual
       The cloud-based service, an outgrowth of          to any of the four digital retailers. The ser-    users spending time on the Explore page,
     Walt Disney’s Disney Movies Anywhere,               vice will automatically populate consumers’       interacting with the seasonal, franchise and
     lets people store and access their purchased        digital libraries from any of the participating   many of collections we showcase in that
     movies across a wide variety of platforms,          retailers on Movies Anywhere. Consumers           area,” she said.
     from TVs to iPhones, for immediate view-            can immediately stream or download any              Overall, the service is a hit with consum-
     ing wherever and whenever they want                 film from their Movies Anywhere library           ers, she said.
     to — regardless of whether the movies are             “The magic really happens when you link           “The consumer response to Movies
     acquired digitally or on disc. Consumers            to retailer accounts because you get to see       Anywhere has been incredible, and the
     can do so through Movies Anywhere apps              that whole collection come together,” Gil-        feedback and engagement with the app is
     or through the website.                             ford said. “There’s that sort of aha moment       strong as consumers experience the ease
       “It’s a seamless experience, designed with        that happens when all of the titles that you      of bringing digital movie collections to-
     the consumer in mind,” said one veteran             bought from one of our five studios on any of     gether,” she said. “The strength of the
     industry observer. “Enter the code and the          our four digital retailers all come together.”    studios and digital retailers that have come       reality resulted in Fox’s groundbreaking
     movie pops up on your phone, on your                  Consumers can also buy new digital mov-         together at launch is unprecedented, and           first commercial VR product, The Martian,
     TV — everywhere your account is linked.”            ies on the app through Movies Anywhere            consumers are recognizing this.”                   a roughly 20-minute interactive experience
       “Movies Anywhere is just the latest ex-           retailers and redeem codes from DVDs or                                                              that put viewers in the world of the feature
     ample of studios and distributors working           Blu-ray Discs they have purchased to gain                                                            film. That virtual reality experimentation
     together to provide more value to the               immediate access to more digital movies.          STUDIO STANDOUTS — A LOOK AT WHAT’S                helped result in this year’s creation of an
     consumer and setting a new bar for digital          Starting next year, physical discs will fea-      UP THE MAJORS’ SLEEVES                             entire new business unit at the studio,
     movie ownership,” said Michael Bonner,              ture Movies Anywhere branding.                      20th Century Fox                                 FoxNext, which not only works on VR, but
     EVP of digital distribution for Universal             Movies Anywhere allows consumers to               The Fox Innovation Lab, 21st Century             video games and theme parks.
     Pictures Home Entertainment.                        have up to five subaccounts, in addition          Fox’s research and development center,               Fox Innovation Lab now also has its eye
       “Movies Anywhere, [like] Premium                  to the master account. Subaccounts can            was established to drive the advancement           on incorporating artificial intelligence, or
     VOD … will shake up the basic tenets of             have personalized recommendations and             of groundbreaking technology and new               machine learning, both in the entertain-
     distribution and how and when consumers             restrictions, allowing the master account         consumer experiences across all platforms          ment production and distribution process
     get content,” noted Mark Fisher, president          holder to ban access to ‘R’-rated films for       and distribution models.                           and in the content itself.
     and CEO of the Entertainment Merchants              a child, for instance. Purchases may only           The Lab works across all 21st Century              “You could be watching a sporting event
     Association.                                        be made from the master account. Viewers          Fox film and television divisions as well          and you could have a conversation with
       Movies Anywhere launched on Oct. 11,              can start streaming a movie on one device         as key external partners on advancements           your television about stats depending on a
     2017, with support from Disney (includ-             and finish it on another. Two viewers can         in next-generation technologies, includ-           sport or a player,” Kaye noted. “You could
     ing Pixar, Marvel Studios and Lucasfilm),           watch the same title on different devices at      ing high dynamic range technology; 5G              ask questions, just like people talk to Alexa
     Sony Pictures, 20th Century Fox, Univer-            one time, and up to four viewers can stream       and mobile content delivery; virtual, aug-         today or to Google Home.”
     sal Pictures and Warner Bros. Movies are            different content on different devices at         mented, and mixed reality content; and
     redeemed through digital retailers Amazon           the same time. Consumers can access their         hardware, machine learning, artificial in-           Warner Bros.
     Video, Google Play, iTunes and Vudu                 library on Amazon Fire devices, Android           telligence and advanced data analytics.              Warner Bros. Home Entertainment’s in-
                           (owned by Walmart).           mobile and tablet devices, Android TV,              Fox’s collaboration with leading technology      novation efforts are focused on developing
                               Movies Anywhere           Apple TV, Chromecast, iPhone, iPad,               partners to drive industry innovation is seen      a better picture and sound to boost home
                                  is a Disney-owned      iPod Touch, the Roku platform and popu-           in its latest work with HDR10+ to improve          entertainment sales.
                                    entity that oper-    lar Web browsers.                                 the home entertainment viewing experience            Jim Wuthrich, president of the Americas
                                    ates     indepen-      The service launched with a five-free-          for audiences. HDR10+ is an open, royalty          and global strategy, notes that the physical
                                     dently with input   movies offer has a comprehensive market-          free technological step forward that optimiz-      disc still drives the business and is also the
                                     from an advisory    ing strategy.                                     es picture quality for next-generation displays    best, most reliable delivery system for 4K
                                    committee with         “We have a robust and year-round paid           through the use of dynamic metadata, which         Ultra HD with high dynamic range, the
                                    members from         media strategy that leans heavily into mo-        more precisely adjusts content to the capabili-    new format that provides a picture with
                                   each of the par-      bile user and Web acquisition tactics, and        ties of different TVs.                             greater contrast and more vivid colors.
                                 ticipating studios      are engaging consumers with ongoing and             Danny Kaye, EVP at 20th Century Fox                “4K UHD HDR is a superior consumer
                                “Movies Anywhere         targeted email, push, and in-app marketing        and managing director of the Fox Innova-           experience on physical,” he said. “All the
                             enables movie fans to       tactics,” Gilford said. “And last but not         tion Lab, added that “working in partner-          bits are on the disc. Getting them from
                            sync their collection        least, we have the unprecedented support          ship with Panasonic and Samsung through            the player to the television is a guaranteed
                       from the five studios across      from our studio partners who are helping us       the Fox Innovation Lab, we are able to             experience. When you talk about 4K UHD
                       retailers, devices, and plat-     build the Movies Anywhere brand through           bring new platforms like HDR10+ to the             HDR in the digital space there’s a lot of
                       forms. It’s a game changer        their title marketing efforts.”                   market that more accurately realize the            dependencies that we just don’t have control
www.HomeMediaMagazine.com « December 2017                                                                                                                                                                        15

over, so you may have the broadband speed          distributor — led by Jim Packer and Ron
to get it into your house, but once it gets into   Schwartz — with nearly 15% market share
your house, and it’s got to go across your         and about $1 billion in annual revenue driven
own network, those bits might get lost, so         by a 16,000-title film and television library.
we can’t guarantee that same experience that         Through the fiscal half-year (ended Sept.
you can on physical.                               30), home entertainment movie revenue
  “The other thing you just can’t get away         reached $400 million, compared with $100
from is the size of these files. There’s so        million a year earlier. TV content retail
much information that’s packed in these            sales reached $6.5 million, compared with
4K experiences that it takes a long time and       $10 million in the previous-year period.
a lot of bandwidth in order to deliver that          Beeks has said home entertainment rev-
content. Physical solves those problems,           enue helps underwrite a “substantial” por-
and it’s a very efficient way of delivering all    tion of company overhead costs, which
of the information.”                               include upstart over-the-top video services
  The format is already gaining traction.          such as Kevin Hart’s Laugh Out Loud,
  “Consumers are very excited about 4K             Spanish-language Pantaya, Tribeca Short-
UHD television sets and they’ve been buy-          list and Comic-Con HQ.
ing them in record numbers,” Wuthrich                “Over the past several years, we’ve leaned
said. “People want to watch this content           heavily into the library business. Even
and utilize those television sets.”                before all these [distribution] platforms
  Other new technologies that the studio is        began to proliferate, we felt we could see it    ‘Ghostbusters’ director Ivan Reitman and star Dan Aykroyd with fans at the launch of Ghostbusters VR — Now
keen on are virtual, augmented and mixed           coming. All the other studios were slacking      Hiring, Act 1: Firehouse at the Sony Pictures lot March 20.
reality. The studio released a VR experience       their interest [in library],” Beeks said.
for the hit horror film It and plans a home          Schwartz believes 4K and high dynamic
VR experience for Justice League as well.          range can resonate with consumers seek-          Eddie Cunningham, president of UPHE.                          launch of Movies Anywhere, and even more
                                                   ing superior visual and audio formats in           The executive contends discs still account                  excited about the roadmap ahead,” said Mi-
                                                   the home. The distributor last year bowed        for the lion’s share of home entertainment                    chael Bonner, EVP of digital distribution.
                                                   initial 4K releases around Sicario, The Last     spending, as evidenced by the more than                         Bonner praised the Movie Anywhere
                                                   Witch Hunter, Ender’s Game and The Ex-           465 million physical transactions recorded                    app’s “rich features and the freedom, flex-
                                                   pendables 3.                                     domestically in 2016.                                         ibility and utility.”
  “We are really bullish and excited about           “4K UHD is reinvigorating interest in the        “The format remains exceptionally vi-                         “Universal will absolutely be complement-
the virtual, augmented, mixed reality mar-         high-definition platform and … strength-         brant and viable,” he said earlier this year.                 ing Movie Anywhere marketing initiatives
ketplace,” he said. “It’s a nascent market-        ening HD packaged-media sales,” said               The studio bowed its first 4K Ultra HD                      in 2018 as we work toward driving broad
place, but we think that this is going to be a     Schwartz.                                        Blu-ray Disc release in April 2016 with                       consumer awareness and adoption,” he said.
very important part of the home entertain-           He said early results suggested about          Jason Bourne. Since then the number of
ment/entertainment slate. And we think             triple the sales of comparable Blu-ray Discs     4K UHD titles in market has more than                           Paramount Pictures
home entertainment is a natural home for           — the industry’s last platform launch.           doubled, with as many as 300 titles avail-                      In a year of change at corporate par-
virtual, augmented, mixed reality and the            “With our deep library and rich content        able industry-wide by the end of 2017.                        ent Viacom, subsidiary Paramount Home
reason is most people are going to experi-         crossing multiple genres, we feel we can           Cunningham said 4K UHD Blu-ray with                         Media Distribution buttressed traditional
ence it in their homes.”                           reach consumers many different ways. And         high dynamic range raised the bar in home                     physical media with expanded digital, 4K
  He notes the experiences with It and             we see the momentum continuing as the            movie watching. As the 4K ecosystem con-                      and virtual reality campaigns.
Justice League in virtual reality are very         installed base of 4K televisions continues       tinues to gain traction, Cunningham said                        For the year, home entertainment rev-
immersive.                                         to grow,” Schwartz said.                         Universal remains committed to delivering                     enue from disc and digital retail showed re-
  “Basically, it allows the consumer to go           Lionsgate continues to scout opportuni-        more compelling 4K Ultra HD offerings,                        silience, improving 8% from 2016, reflect-
into these worlds that they’ve seen on the         ties to enhance content discovery, includ-       including catalog gems E.T. — The Extra-                      ing ongoing Teenage Mutant Ninja Turtles:
screen and get closer and interact in that         ing virtual reality.                             Terrestrial and Apollo 13 in September and                    Out of the Shadows carryover revenue, as
environment,” he said.                               Over the summer it partnered with Unit-        October, respectively.                                        well as strong catalog sales. Domestic and
  As far as pricing for these experiences,         ed Technologies to develop what it claimed         “We can expect to see that number                           international home entertainment revenue
Wuthrich said the industry is in the ex-           was the first virtual reality movie ad for the   [of 4K BD titles] to expand considerably                      increased 11% and 3%, respectively.
perimental stage.                                  October theatrical reboot of the lucrative       in 2018, as content companies continue                          Paramount joined Lionsgate, Sony Pic-
  “We’re experimenting from 99 cents all           “Jigsaw” horror franchise.                       to release new and catalog titles in the                      tures Home Entertainment and Warner
the way up to the price of more of a tra-            “As big believers in the power of immer-       premium format,” Cunningham said. “As                         Bros. Home Entertainment in incorporat-
ditional game,” he said. “Having said that,        sive storytelling, we are incredibly excited     well, 4K movies, TVs and players are sell-                    ing Dolby Vision and
again, we think there’s a real opportunity         to bring Jigsaw into the world of VR,” said      ing units in record numbers. There is a clear                 Dolby Atmos in
here and we’re going to continue to figure         David Edwards, SVP of digital marketing.         groundswell around demand and we are                          4K UHD Blu-ray
out how you make that an experience con-                                                            highly optimistic about the format’s future                   Disc and Digi-
sumers can’t live without.”                          Universal Pictures                             prospects. Plan to see Universal increase its                 tal HD releases
                                                     Despite a challenging 2017 theatrical          overall investment in 4K UHD offerings in                     featuring high
  Lionsgate                                        market, Universal Pictures Home Enter-           the coming year.”                                             dynamic range.
  Exiting leader Steve Beeks leaves behind         tainment quietly produced on the bottom            Indeed, Universal in September joined                         Dolby main-
a studio/distributor successfully tackling         line. The studio churned out resilient fis-      iTunes in offering 4K UHD digital titles                      tains its new
changing distribution business models              cal results while embracing a new digital        through the upgraded Apple TV. Apple                          HD audio and
(OTT video, 4K and virtual reality) while          distribution business model (Movies Any-         TV ranks fourth among streaming media                         visual      technol-
sustaining physical media.                         where) and upping its 4K UHD Blu-ray             devices, with more than 21 million users,                     ogy enhances video
  A year after acquiring premium TV dis-           presence.                                        according to eMarketer.                                       content with life-like
tributor Starz, Lionsgate has assimilated            “Consumer spend has increased each quar-         In October, Universal joined Warner, Dis-                   qualities.
home entertainment unit Starz Distribution         ter over prior year, with the growth driven by   ney, Sony and Fox in launching the Movies                       Bob Buchi, president
(and Anchor Bay Home Entertainment) to             the overall digital business — on both trans-    Anywhere cloud-based locker service.                          of worldwide home me-
emerge as the No. 4 home entertainment             actional and subscription platforms,” said          “We are very pleased thus far with the                     dia distribution, said he
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