October 11, 2006

Agonizing Reappraisal Time in Tinseltown?

Filed under: Business Moves — Tom @ 8:03 am

Sure, the theater gross is up over 5% this year, but that doesn’t beat inflation by a lot, and that’s after an awful 2005 at the theaters.

On top of that, this Business 2.0 post from last week refers to a report predicting that DVD sales will flatline next year.

Digital downloads to the rescue? Possibly, but only if their volume ramps up quickly. Wal-Mart’s bullying tactics with the studios are going to make it hard for the studios (except Disney, which has already signed on with Apple’s iTunes) to be too aggressive in such a migration.

No wonder George Lucas “is getting out of the movie biz.” Throw in the success of ultra-low budget movies like “Facing the Giants” (mentioned in the previous post), and you understand where Lucas is coming from.


No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.