DVD sales off to a slow start in 2007
LOS ANGELES (Hollywood Reporter) – Video industry executives concede that any slowdown in DVD sales so far this year is of their own making: Release schedules have been notoriously weak, with a lot of the high-profile titles that traditionally get saved for January or February pushed out the door in December to capitalize on the holiday buying frenzy.
The collective box office value of theatrical DVDs released in January was just $533.5 million, down 28.1% from the January 2006 total of $741.6 million. The February 2007 count was $542.8 million, 8% less than the $588 million theatrical value of February 2006 DVD releases.
Only now, in March, is the industry beginning to see a turnaround, with 17 films coming to DVD after earning $1.03 billion in theaters, essentially flat with the March 2006 theatrical tally.
Four of them grossed more than $100 million theatrically: “Borat” ($128.5 million), which came out on DVD March 6; “Casino Royale” ($167 million), released last Tuesday; “The Pursuit of Happyness” ($162.6 million), due March 27; and “Happy Feet” ($194.8 million), also coming March 27.
There were some success stories early in the year. Lionsgate had its biggest January ever and dominated sales charts with hits like “Saw III” and “Crank.”
“Excess product in the holiday period created an opportunity for us in the first quarter,” said Lionsgate president Steve Beeks.
Paramount Home Entertainment, too, has had a good first quarter, thanks to such titles as “Flags of Our Fathers,” “Babel” and “Flushed Away.”
The outlook for April and May is also good, with the box office value of announced April 2007 DVD releases clocking in at $603.3 million, compared with $671.3 million for the final April 2006 roster. And already, several big titles have been slotted for May, including “Dreamgirls” (May 1) and “Apocalypto” (May 22).
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