EST Sales of Bad Teacher increase without affecting physical with early iTunes Amazon - High-Def Digest Forums
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Old 12-03-2011, 06:52 PM
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Default EST Sales of Bad Teacher increase without affecting physical with early iTunes Amazon

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All Things Digital
WSJ Digital Edition






Hot for “Bad Teacher”: Sony Spikes Sales With Early Offers on iTunes, Amazon


NOVEMBER 30, 2011 AT 4:00 AM PT
Peter Kafka

Hollywood is trying to figure out how to get people to buy more movies instead of renting them. Sony might have an answer: Sell the flicks on iTunes, Amazon and other digital outlets before viewers can buy or rent them anywhere else.

Sony tried doing this with “Bad Teacher” last month, and the results sound encouraging
for the studio. It says its “windowing” experiment boosted digital unit sales by 60 percent, and overall digital revenue by 24 percent.

That is: Most people prefer to rent a movie than buy it outright. But when offered the chance to pay for a download or wait a couple weeks to rent the movie, some folks paid up.

Digital sales of “Bad Teacher” make up a small percentage of the movie’s overall digital revenue (Sony won’t release actual sales numbers), but there’s a lot more profit in each transaction for the studio. Rentals via iTunes run from $3.99 to $4.99 for the Cameron Diaz vehicle, but sales run from $14.99 to $19.99 a pop.

More good news for Sony: It says demand for digital rentals didn’t seem to drop once they became available two weeks after digital sales started. And physical sales — still the most important source of income for the studio — don’t seem to have suffered, either.

That last point is crucial for Sony’s relationships with the retailers it counts on to move old-fashioned discs while stepping into digital at the same time. Retailers like Wal-Mart and Best Buy are selling Sony’s movies via digital outlets, like Wal-Mart’s Vudu, but they won’t do it at the expense of their brick-and-mortar business (yet.)

“The good news that encourages us is that the physical retailers, those are the guys that are playing well and getting good results out of this,” says John Calkins, who heads up digital for Sony’s home video unit.

Calkins figures that the promotion for the early digital sales ended up working as marketing for all of the movie’s sales, and thinks that will work with other films, too.


Calkins just tried the experiment again, with “30 Minutes Or Less,” and says that comedy saw similar results. Calkins says he’ll try it one more time in 2011, with a movie he won’t disclose.
http://allthingsd.com/20111130/hot-f...itunes-amazon/
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Old 12-03-2011, 07:02 PM
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Sounds like a real good idea to try and encourage EST sales especially if its not seen to affect other revenue streams.

It especially seems like it would be effective on those titles that may have a buzz factor on social media.

In any case if it helps high margin EST sales which are still relatively small and does not impact high margin physical disc sales which are still much larger and even better does not disturb lower margin digital rental transactions then it clearly makes a lot of sense to try again and again.

Sony is clearly not going to stop stop support of physical media like Blu-ray anytime soon nor are retailers going to do so either but innovative ideas like this make a lot of sense as clearly digital will grow over time and is the future.

Even if their was not a lot of extra revenues generated here in comparison with physical sales its all high margin transactions and it seems to be a great idea in encouraging EST over subscription or cheap streaming.

If some consumers are willing to pay a bit more for the early window that sounds like a good idea to pursue.

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Old 12-03-2011, 07:11 PM
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Using Bad Teacher as an example is bad... Why? The movie's not good, and most people don't want to buy it.

fitprod
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Old 12-03-2011, 07:11 PM
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Wow that is encouraging! I hope they do this more.
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Old 12-03-2011, 07:30 PM
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Quote:
Originally Posted by fitprod View Post
Using Bad Teacher as an example is bad... Why? The movie's not good, and most people don't want to buy it.

fitprod
I fail to see the logic in your post. The movie was a box office success ($100M+ at the box office), and certainly has appeal. That you think it's bad is basically irrelevant under any reasonable thought process about judging the impact of something like this. I mean, even if the film wasn't a fairly big box office hit, you can still judge it...against box office conversion rates to home video and sell-through and rentals methods and comparable titles with similar levels of popularity.

So basically, what you said...no. Now if you want to say a smaller (relatively, Bad Teacher really isn't that small of a film, only compared to really big movies is it small) doesn't paint a full picture of potential impact...you would be correct.

It's always best to avoid giving too much value to your personal opinion when discussing market trends.
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Old 12-03-2011, 09:54 PM
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I'm confused. I clicked the link Kosty provided and this is the title of the article:

Hot for “Bad Teacher”: Sony Spikes Sales With Early Offers on iTunes, Amazon

Why did you decide to change the title of the article? I searched the article and not did not see the word "affecting" anywhere. I've been attacked numerous times for any type of change to an articles name.
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Old 12-03-2011, 10:03 PM
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I think Sony is going to do this experiment again with another upcoming release. I thought it was either Moneyball or The Ides of March, but can't remember specifically.
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Old 12-03-2011, 11:36 PM
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This is going to be the industry standard at some point. Theatrical -> Digital -> Physical. There's a lot of upside to adding that new window and not a whole lot of downside.
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Old 12-03-2011, 11:44 PM
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As long as they dont push the physical version out later I am fine with it. Digital=Yuk. Not allowed in my theater.

BTW I just watched this tonight. Awesome!!! I loved the beginning when Diaz said this. "Hurry up and get hard cause I'm gonna suck your c**k". HAHAHAHAHA. Had me rolling. :yay:
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Old 12-03-2011, 11:51 PM
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This is not a surprise, I expect to see more of this, along with studios releasing Blu-Ray combo packs before DVD only.

So digital -> combo pack -> dvd
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