Audio News for October 3, 2008

Hollywood Movies Thrive During Rough Times – A study by SNL Kagan, comprehensive resource for financial intelligence in the media and communications sector, shows that “when the going gets tough, consumers go to the movies.”  Theater box office revenues in 2007 hit a gross record of $9.67 billion domestically, to best the previous mark of $9.29 billion in 2002.  The study analyzed all films shown on 1000 or more screens from  2003 to 2007, providing ten-year pro forma models based on genre and budget range. Overall, the most expensive films posted the largest revenues and average net profit. The 741 films in the study averaged $66.4 million in net profit. Results varied by genre: animated films performed best and horror films were next. The study helps film investors reduce their risk by providing economic benchmarks and proprietary financial models.

Portland Jazz Festival Revived – Alaska Airlines has rescued the Portland Jazz Festival, which had just been canceled due to lack of financial support, by agreeing to a multiyear sponsorship. Spearheaded by a committee led by Portland City Commissioner Nick Fish, businessman Sho Dozono and Travel Portland, the festival has acquired additional corporate support from U.S. Bank, Precision Castparts Corporation and other individuals, charitable organizations and businesses. Qwest will continue its support of the festival.  Founded by Sarah Bailen Smith and Bill Royston in 2003, the Portland Jazz Festival has become one of the country’s top jazz showcases.  This year it presented 150 separate events over ten days and attracted 36,000 patrons.  The Jazz Journalists Association named the Portland Jazz Festival as one of the top 5 jazz events in the U.S. The 2009 Festival, scheduled for February 13-22, will be dedicated to the 70th anniversary of Blue Note Records, with top Blue Note jazz artists from over the years coming to Portland to perform.

Drop in Blu-ray Market Share – Nielsen’s VideoScan service found that for the week of September 14, Blu-ray disk sales dropped 13.4%.  Although 12 million disks have been sold in 2008 compared to only 5.6 million in 2007, Blu-ray is still below 5% of total video disk sales.  The problem seems to be that although the pricing of the hardware has come down below the $200 point, the disc pricing needs to be more realistic.  On smaller screens, 42 inch and below, using even inexpensive DVD players with upconversion, the image may be a bit softer with standard DVDs but it is nothing like the huge difference between DVD and VHS tape, so many are unwilling to shell out for the Blu-ray upgrade.  As broadband Internet improves in speed, the quality advantages of Blu-ray may not be able to overcome the convenience of electronic delivery.  Blu-ray has to be made more affordable – perhaps even with $100 players.