Expected ancillary revenue from DVDs plays a significant part in modeling many television program budgets. Well, at least it used to.
DVD sales were falling even before the recession, and now consumer spending cutbacks are hurting the category even further. While the DVD marketplace is more a mainstay of the film business, it had become a nice back-end profit driver for television in recent years. But the softness in the space is now affecting profit projections, so content providers are hoping digital and international can help make up theDVD falloff.
“We’re keeping a watchful eye on the DVD market obviously, and we are being overly cautious about how we project DVD revenues going forward,” says Sony Pictures Television President Steve Mosko. “It’s a concern, but our economics aren’t built on the DVD market like the feature film business.” – full story on Broadcasting & Cable