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.

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