Did Blu Ray Sales Affect Mouse House Profits? Disney Profits Drop

[RealityCheck]

Man, you would think that the Mouse House (DISNEY) did incredibly well in home video last year with the addition of Blu Ray to it's arsenal of Home Video distribution channels. It's interesting that on the surface, titles like Pirates 1,2 and 3 plus the BR release of Cars, Ratatoille, and the ton of other significant Blu Ray releases would have nicely offset any further erosion of profit from HV sales. But it did not. Did all that price cutting and BR disc giveaways cut into profit? One can only speculate but it was Blu Ray that started the massive Buy One Get One Free promotions that caused a near meltdown of expected profits from this new revenue generator.

But, see for yourself.

"Walt Disney Co.’s fiscal first-quarter earnings fell 27% from a year earlier, including DVD sales that were 9% lower than the comparable prior year period."

Operating earnings at Disney’s parks and resorts unit rose 25% as a weak dollar boosted spending from overseas tourists at U.S. resorts Walt Disney World and Disneyland.

Looks like Disney is seeing some red, so to speak.

Doesn't seem like they'll be seeing blu anytime soon.

http://www.videobusiness.com/article/CA6529088.html

[hidefimports]

I heard a rumor that Disney is switching to HDDVD sometime after May if HDDVD players are still selling.

[cleeve]

god, your username just cracks me up after reading your post!

[Badger3920]

Go ahead and link us to that rumor

[DueNorth]

The Mouse House

Do you read what you even posted?

"DVD sales that were 9% lower than the comparable prior year period."

I didn't know when Blu-Ray discs became DVDs!

This drop would really affect Toshiba more since they get DVD royalties.

[zombieflanders]

Well this thread won't last long, since the OP is flat-out making up a conclusion out of nothing, so time to join in...

I heard a rumor that Universal and Paramount have their first Blu-ray titles ready to go for June.

[RealityCheck]

Originally Posted by zombieflanders

Well this thread won't last long, since the OP is flat-out making up a conclusion out of nothing, so time to join in...

I heard a rumor that Universal and Paramount have their first Blu-ray titles ready to go for June.

Oh Zombie, stop it. You are a master at opinionating from cut and paste data, why should I be any different?

Jealous?

[DueNorth]

Originally Posted by RealityCheck

Oh Zombie, stop it. You are a master at opinionating from cut and paste data, why should I be any different?

Jealous?

MarketingGuru... is that you?

[Favelle]

Originally Posted by zombieflanders

Well this thread won't last long, since the OP is flat-out making up a conclusion out of nothing, so time to join in...

I heard a rumor that Universal and Paramount have their first Blu-ray titles ready to go for June.

[zombieflanders]

Originally Posted by RealityCheck

Oh Zombie, stop it. You are a master at opinionating from cut and paste data, why should I be any different?

Except that I provide proof. You have no proof that Blu-ray was any way involved. Indeed, it specifically says DVD.

Jealous?

YOu have nothing that makes me jealous, but lots to make me happy I'm without!

[dolphinius_rex]

Gee, it couldn't possibly be related to the known fact that the DVD industry is shrinking in dollar value (not just Disney, but all studios are affected)

[Sparrow]

Originally Posted by dolphinius_rex

Gee, it couldn't possibly be related to the known fact that the DVD industry is shrinking in dollar value (not just Disney, but all studios are affected)

exactly, and please keep in mid it said sales were down, that could easily and likely does mean volume of sales, since dvd's also sell for less money now that 9% could account for a much larger profit drop.

[bazie]

Originally Posted by zombieflanders

Well this thread won't last long, since the OP is flat-out making up a conclusion out of nothing, so time to join in...

I heard a rumor that Universal and Paramount have their first Blu-ray titles ready to go for June.

ya man i totally heard that one two!

This guy called "zombieflanders" (clearly and alias, but he is like totally a universal AND paramount insider) like hinted about this on some internet forum.

[kowhite]

Without going into any detail, the answer is no, Blu-ray is not responsible for the drop in profit. Given that anybody who has actual information on this, can't actually share it with you, you're not going to get a specific answer. Which is why my post will be somewhat vague. But given that I would know better than basically anybody posting here, yeah, it's not.

In reality, Blu-ray expenses just weren't that large. When they say it's due to DVD, they mean it...it's DVD. And it's not due to ballooning expenses of ANY sort. Granted, Disney did put some extra money into Blu-ray marketing...but it's just a drop in the bucket compared to the real drivers of the profit difference.

[zombieflanders]

Originally Posted by bazie

ya man i totally heard that one two!

This guy called "zombieflanders" (clearly and alias, but he is like totally a universal AND paramount insider) like hinted about this on some internet forum.

Is it so hard to believe my parents had a morbid sense of humor and a fondness for Belgian provinces, so my name really is Zom B. Flanders?