Just like in the job market and the economy at large, “Things don’t suck quite as much as they used to,” is apparently what passes for good news in the entertainment industry these days. Echoing upbeat comments he made last month, Time Warner CEO Jeff Bewkes recently stated that the decline in DVD sell-through rates is slowing, and that there are signs of hope in the home entertainment market. Bewkes made the following comment during an investor summit in New York:
“DVD trends are not declining as fast as they were last year. . . I think some of that was the pressure of the economic contraction.”
Bewkes also said that the home entertainment industry is at least partially being sustained by Blu-ray disc sales and electronic sell-through and rentals.
Never one to pass up an opportunity to bash Redbox, Bewkes leavened his optimistic comments by expressing concern about $1 per night DVD rentals and their effect on the market. According to Home Media Magazine, Bewkes said that his company would “support the business models that have appropriate margins and not those that don’t”. The Time Warner CEO continued:
“There is certainly a place for [kiosks],” Bewkes said. “[But] there’s a question … where they should be in the temporal chain of distribution.”
It’s interesting to note that Bewkes’ comment about “pressure of economic contraction” is exactly what Redbox CEO Mitch Lowe said on the subject a month ago. Let us know what you think about Bewkes’ opinion on the DVD market—including Redbox—in the comments.
[via Home Media Magazine]