Hollywood to feel pinch from DVD slump


Hollywood studios that are owned by the world’s biggest media companies are preparing to curb the lucrative pay deals offered to film stars following a precipitous decline in DVD sales, the industry’s most important revenue stream.

Hollywood has come to depend on DVDs, with many films only breaking even once they are released in the format. But a decline that started slowly at the beginning of last year accelerated from November, with sales of new titles falling 21 per cent, according to Nielsen figures seen by the Financial Times.

A senior executive at one of Hollywood’s leading studios said the slump, which was much greater than projected, would “trim all the profitability” from new films that have been “greenlit”, or approved for production.

“Studios are going to have to renegotiate a lot of talent deals if new movies are going to get made,” he said. “There’s nowhere else to shave the money than with the talent.


DVD, Film Business, Hollywood

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