Fox in No Hurry to Rush ‘Avatar’ to Retail

2 Feb, 2010 By: Erik Gruenwedel

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With little slowdown to box office juggernaut Avatar, News Corp. said it is in no hurry to rush James Cameron’s fantasy film to DVD and Blu-ray Disc.

Speaking Feb. 2 in a call with investors, CEO Rupert Murdoch said the movie will contribute significantly to 20th Century Fox Studios’ operating profits over the next two quarters with the DVD/Blu-ray releases slated at the end of the fiscal year in June.

The studio includes 20th Century Fox Home Entertainment, among other ancillary properties.

Murdoch admitted that the studio’s operating income projections in the current fiscal year assume an Avatar DVD/Blu-ray release, but not in 3D.

“We’re not going to yank it out of theaters if it is doing $30 million a weekend,” News Corp. president Chase Carey said.

“We’ll keep it going,” added Murdoch, referring to the $95 million weekly box office Avatar is generating internationally.

Meanwhile, successful worldwide DVD and Blu-ray Disc releases of Ice Age: Dawn of the Dinosaurs, X-Men Origins: Wolverine and Night at the Museum: Battle of the Smithsonian, among others, helped 20th Century Fox Studios post second-quarter (ended Dec. 31, 2009) operating income of $324 million, almost tripling operating income of $112 million during the previous year period.

Noteworthy is the fact that launch costs — not revenue — from Avatar, the top grossing theatrical release in history (with more than $1.8 billion in ticket sales) in less than two months, were accounted for in the second quarter, which bodes well for the third quarter and beyond.

Studio revenue increased nearly 28% to $1.89 billion, compared to $1.48 billion last year.

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