Warner Home Video Q2 Revenue Drops 18%5 Aug, 2015 By: Erik Gruenwedel
Warner Home Video Aug. 5 reported second-quarter (ended June 30) revenue from packaged-media and digital distribution of theatrical content topped $461 million, down about 18% from revenue of $563 million during the previous-year period.
The studio attributed the decline primarily to unfavorable year-over-year comparisons with The Hobbit: The Desolation of Smaug and The Lego Movie.
Smaug sold more than 2.3 million combined DVD, Blu-ray Disc units generating $60.2 million in revenue in 2014, according to The-Numbers.com. The Lego Movie topped $105 million in disc sales.
By comparison, The Hobbit: The Battle of the Five Armies has sold $58.5 million worth of discs this year.
Revenue from packaged media and digital distribution of Warner Bros. Television content declined almost 17% to $92 million, from $110 million a year ago.
Through the first half of the year, theatrical revenue is down 12% to $830 million, from $945 million a year ago. TV content revenue is down less than 12% to $198 million, compared with $224 million a year ago.
Meanwhile, Warner Bros., which includes WHV, said operating income increased 46% ($107 million) to $341 million on revenue of $3.3 billion, which was up 15% ($428 million) from a year ago— despite a decline in revenue at the box office.
Notable revenue drivers included syndication sales of “The Big Bang Theory” and subscription streaming revenue from the licensing of “Seinfeld” to Hulu Plus. Video game revenue spiked via releases Batman: Arkham Knight and Mortal Kombat X.