Warner Q1 Home Entertainment Revenue Dipped 4.3%29 Apr, 2015 By: Erik Gruenwedel
Warner Bros. Home Entertainment Group reported first-quarter (ended March 31) revenue from packaged media and digital distribution of movies of $369 million, down 3.5% from revenue of $382 million during the prior-year period.
WBHEG, which includes Warner Home Video, saw revenue from television product drop almost 7% to $106 million.
Meanwhile, Warner Bros. operating income declined 12% ($45 million) to $324 million on revenue of $3.2 billion, which was up 4% ($133 million) from a year ago.
Notable revenue drivers in the period were the box office from Oscar-nominated American Sniper, which has grossed $541.7 million at theaters globally, and the licensing of streaming rights of “Friends” to Netflix.
WHV May 19 will release American Sniper on Blu-ray Disc and DVD. The film already is available via Digital HD.
The studio April 9 announced a partnership with The Lego Group for the release of Lego Dimensions, a video game that combines Lego building block toys and feature films The Lord of the Rings and The Lego Movie.
Finally, HBO reported a 1% decrease ($6 million) decrease in operating income of $458 million on revenue of $1.4 billion, which was up 4% ($49 million) from a year ago. Increased marketing costs in the quarter were primarily due to the launch of HBO Now, a standalone SVOD service.