Thomas K. Arnold is considered one of the leading home entertainment journalists in the country. He is publisher and editorial director of Home Media Magazine, the home entertainment industry’s weekly trade publication. He also is home entertainment editor for The Hollywood Reporter and frequently writes about home entertainment and theatrical for USA Today. He has talked about home entertainment issues on CNN’s “Showbiz Tonight,” “Entertainment Tonight,” Starz, The Hollywood Reporter and the G4 network’s “Attack of the Show,” where he has been a frequent guest. Arnold also is the executive producer of The Home Entertainment Summit, a key annual gathering of studio executives and other industry leaders, and has given speeches and presentations at a variety of other events, including Home Media Expo and the Entertainment Supply Chain Academy.
I’ve gotten a lot of calls today concerning the shakeup over at Paramount, ranging from “What the hell happened?” to “What does it mean?”
What happened is this: Paramount put all channels bringing entertainment into the home under one roof, in a new division, Paramount Worldwide Home Media Distribution, headed by Dennis Maguire, previously president of Paramount Home Entertainment.
What does it mean? It means the powers that be at Paramount are exhibiting a great deal of common sense.
One thing we learned earlier this year, when we were compiling our “Digital Drivers” section: The studios are all over the place when it comes to categorizing digital distribution. Some put it under the TV group; others, home video; and still others, on its own platform, separate but equal to TV and home entertainment.
In creating its new Worldwide Home Media Distribution division, Paramount has taken a bold step toward integrating its various into-the-home distribution channels and putting one guy, an industry veteran known for his team-building and ability to work well with others, in charge. Dennis Maguire is hardly a polarizing figure; he’s a universally respected, and accepted, executive who doesn’t have sharp elbows and, quite frankly, knows his stuff. He’s worked his way through the Disney home entertainment boot camp — which has produced myriad other talented executives, from Universal’s Craig Kornblau to Paramount’s own Mary Kincaid — and emerged as something of a statesman, if you will, in our industry.
Of course, he’s got a monumental task ahead of him, figuring out the direction our business is going and aligning the various delivery and distribution mechanisms now under his control to maximize value to both studio and consumer.
But at least he’s got a starting point, a general direction from which to begin.
As one observer put, Paramount finally has a blueprint. Now, it’s time to start building the house. And while there may be many design changes up ahead, at least there’s a solid framework for what’s to come.
It’s always gratifying to see one of our own make good, establish a name for himself outside of the confines of home entertainment.
Bob Chapek has made good for the second time in less than two years, and all of us who have worked alongside him for more years than I can recall should be very, very proud.
In what observers and analysts agree is a very smart move, the former president of Walt Disney Studios Home Entertainment has been promoted to president of Disney Consumer Products, an expanded group that includes toys, books, apparel, DVDs and Blu-ray Discs, and video games. Chapek, who since November 2009 had been Disney’s distribution chief, now oversees a mighty consumer products empire that will handle retail and licensing across all of Disney’s businesses, from film to television and interactive media.
The restructuring gives Disney more clout than ever at retail, now that everything it sells is under one corporate roof. Media analyst David Miller, managing director of Caris & Co., told the Los Angeles Times he surmises Disney’s goal is to become “a one-stop shop for the Wal-Marts and all the big-box retailers looking for a place to go with all kinds of toys and consumer products.”
That Disney entrusts such a critical mission to Chapek isn’t surprising. Chapek, who joined Disney in 1993 after working in brand management for H.J. Heinz and in advertising for J. Walter Thompson, quickly made a name for himself in home entertainment for an approach that was at once strategic and visionary. He emerged as a de facto industry spokesman as he eloquently and convincingly pushed for new packaged media innovations such as Blu-ray Disc and 3D when standard DVD sales began to flatten, and at the same time tirelessly championed digital delivery mechanisms such as Disney’s cloud-based KeyChest initiative, which lets consumers buy a movie once and access it whenever they want on computers, notebooks, tablets and other portable devices.
Accordingly, he also broadened industry trade group DEG from a DVD champion into one that promotes all facets of home entertainment, both physical and digital.
Having known Chapek for quite a number of years, I can say this: He’s a true standup guy, honest, forthright and approachable. He’s also a very, very hard worker, thanks in no small part to a solid Midwestern upbringing in Hammond, Ind. As a boy, he was an altar server who showed up at St. John the Baptist Church promptly at 6 a.m., according to a story in his hometown newspaper. His dad was an oil refinery machinist; his mom worked at an insurance agency.
Bob Chapek truly is a self-made man. He may not have been born with a silver spoon in his mouth, but he has a way of touching things and making them turn into gold.
Honey, they shrunk the magazine!
Your next issue of Home Media Magazine will be a little smaller — but not by much. We’ve trimmed an inch off the top to make our digital edition fit perfectly on the iPad, since the booming tablet market, dominated by Apple, is giving digital editions of magazines a whole new life. (To see for yourself, click here and subscribe to our digital edition — it’s free!
We’ve also taken the opportunity to redesign the magazine to give it a fresher look. Thanks to our creative director, Melbert Sebayan, and his design team, Home Media Magazine is now easier than ever to read and digest.
And coming soon will be smartphone apps for Home Media as well as a special “mozine” designed especially for smartphones, so you can get the latest news, reviews, commentaries, blogs and photos as soon as they are posted, no matter where you are.
It’s all part of the evolution of Home Media Magazine into the Home Media Group, our transformation from a weekly print magazine aimed at video retailers to an around-the-clock information source aimed at the entire home entertainment food chain, from content creators and producers to distributors, manufacturers, and of course retailers, analysts, the consumer press, and “super” consumers with a wide swath of influence through blogging or other means.
We were founded 32 years ago this month as Video Store Magazine, a selling tool for the studios as they pitched the concept of watching movies on videocassette to a wary retail base. We’ve grown up with the industry as these retailers established their own rental businesses, and the studios, eager for a bigger cut of the action, pushed a new and improved medium, DVD, directly to consumers to establish the even bigger sellthrough business that in 2001 overtook theatrical as Hollywood’s biggest source of revenue.
Today, there are more ways to bring movies into the home — or directly to consumers, one should say — than anyone could have imagined, even just five years ago. Home Media has been embraced as the voice of the industry, and with the industry going off into so many different directions, all at once, it’s critical for us to be everywhere, as well.
So that’s what we’re doing. Home Media’s voice is as loud, and as vital, as it’s ever been — and the more places you can hear us, the better.
Can there be any more obstacles to 3D’s growth as a home entertainment viewing choice, or option (emphasis intended)?
We’ve got far too many competing formats, not enough good content, media reports that theatrical audiences are tiring of 3D and that it may be bad for your eyes, and mass consumer confusion over exactly what it is — and how it differs from the old red-and-blue glasses we used to wear during periodic 3D fads in the past.
Plus, it’s not user-friendly. The best systems require glasses, expensive glasses, which can easily be lost, misplaced or broken — particularly in homes overrun with children.
Sad, because I really like the concept of 3D, and while I certainly wouldn’t want to watch everything in 3D, there’s a fair amount of stuff out there I would like to immerse myself in to feel as though I’m part of the action instead of merely watching it — which of course is the ultimate goal of the current wave of 3D technology.
3D also has the misfortune of being launched during the worse recession since the Great Depression — and an economy that continues to be troubled to the point where more and more smart minds are questioning whether what we’re all doing is even sustainable. The United States, Europe, Greece — Houston, as they say, we have a problem. A big, big problem.
Fortunately, Hollywood isn’t throwing in the towel, at least not yet. Avatar didn’t light the 3D world on fire, but Walt Disney Studios’ decision to give The Lion King a 3D do-over certainly could give the format a considerable boost.
It would be nice to see more films of that stature come to 3D, but honestly, it’s an expensive, time-consuming proposition, and one that studios are unlikely to invest more money into until they at least catch a glimpse of a potential return on investment.
I had the opportunity, recently, to speak with Robert Neumann, the chief stereographer for WD Animation Studios. He told me the process of converting The Lion King to 3D took a team of about 60-odd artists working for four months, full-time, “including overtime and crunch time.”
But the result, at least in his opinion, is certainly worth it. “The results are stunning,” he said. “After seeing the finished product, at that point I was convinced this is almost a new medium, a new kind of art form, because it retains all the character and energy [of the original] but at the same time gives it a different feel, a certain tangibility, a hyper-real feel. People feel they can reach in and touch the characters. It’s almost like a moving painting.”
Personally, I can’t wait to see The Lion King in 3D. But I’m already a fan. The challenge, now, is to get more people onboard — and that’s what’s going to take what I call the two “Cs,” consolidation (of formats on the hardware side) and content, a lot more content.
I’m still reeling with shock and sadness at the death a few days ago of Maria LaMagra, the veteran home entertainment publicist who spent more than a decade running the PR show at Universal Studios Home Entertainment and then went on to become a successful PR consultant and independent contractor for Walt Disney Studios, Sony Pictures and others
So often, when people die, those of us who are left say something along the lines of, “She left us too soon. She was so full of life.”
In Maria LaMagra’s case, this isn’t just another platitude. It’s God’s honest truth. Maria didn’t observe life, nor did she merely live life. She took life by the shoulders and shook the bejesus out of it, and made it do her bidding.
Come to think of it, she did that to all of us.
Maria LaMagra was the diva of the Hollywood publicists when I joined what was then Video Store Magazine in 1991 and she was still the diva of Hollywood publicists when she died after a brief battle with cancer.
Her family put out a statement saying she was 66 when she died. Maria would have killed them. We all thought she was at least a decade younger. After a certain point, you see, Maria LaMagra stopped aging and became, well, ageless.
I’ll never forget her raspy voice, her loud laugh, the way she would throw back her head when she laughed, those expressive eyes, the way she carried herself, her sense of fashion and style, that aura of self-assuredness she always projected. And her approach – well, let’s just say Maria LaMagra was not from the Subtle School of Publicity. She emailed and then she phoned; she phoned and then she emailed. And she kept doing it, over and over again, until a journalist had no other choice than to say “yes.”
She was, as rocker Dave Edmunds would say, “subtle as a flying mallet.” When Maria LaMagra walked into a room, she owned it. She was loud, no question – and yet her heart was even bigger than her voice.
I’m half expecting a phone call, chastising me for putting her age in print – and asking me for one last favor, for a client, of course. Just six weeks before she died, she was at the EAA’s Wine & Wisdom event at the Skirball Center – clearly ill, but still a big, overwhelming presence. I was on vacation, but our editor in chief, Stephanie Prange, was there and talked to Maria.
The last thing she said, as Stephanie was preparing to leave: “Tell T.K. he still owes me a write-up on Smore Entertainment.”
If there’s a heaven, I can only imagine Maria up there right now, that loud laugh echoing through the clouds as she tells God and his angels what to do.
Well, we finally have our first Internet-connected Blu-ray Disc player in our house, and the boys were beside themselves at the prospect of watching YouTube videos on the big screen … until they saw how crappy they looked.
Their excitement lasted roughly three minutes. Then, out came the Blu-ray Disc of Hall Pass (all right, I’m a bad parent!), three big bowls of popcorn, and just like that the novelty of connecting the big TV to the Internet was forgotten.
I say this because for years everyone has been proselytizing about convergence, convergence, convergence. Turn your TV into a computer, turn your computer into a TV. But as the failed Web TV experiment of the late 1990s showed, migrating the Web to the family room widescreen might not be what people want.
And today — exactly a decade and a half after the launch of Web TV, I might add — I still don’t see it happening.
As our primary home TVs have gotten bigger and clearer, anything less than high-definition simply doesn’t cut it. We’ll watch movies on our PCs, laptops and tablets, but we won’t watch YouTube videos or other low-res fare on our TVs.
Streaming HD movies may ultimately turn out to be a different beast, but for now getting a true high-definition movie on my HDTV in any manner other than a Blu-ray Disc is way too much of hassle. Netflix’s streaming-only plan continues to be hampered by a poor selection; pay-as-you go options from Vudu and iTunes are cumbersome and give me this nasty feeling of someone sticking his hand in my pocket, feeling around for every last bit of change I might have. And I am the only one who is sick and tired of slow download times and “buffering,” which is rapidly becoming the most hated word in the English language?
As for buying digital downloads, forget it. I’d still rather buy a physical object for $10, $15, even $20, than a digital version for half that amount. Too many things that I have downloaded onto my computer over the years have simply disappeared.
I think true convergence has come about, but it’s a one-way deal: our computers have become TVs, but not the other way around. And quite honestly, I don’t see that changing, at least not in the foreseeable future.
Thomas K. Arnold (second from left) with Entertainment One's Griffin Gmelich, Michael Rosenberg and Wally Schmidt.
NEW ORLEANS — It’s the middle of July, the daytime heat is unbearably hot, the nighttime streets are awash with neon and crawling revelers, and everywhere I look people are talking about DVD and the home entertainment industry.
No, I haven’t time-warped back to the glory days of the annual VSDA convention in Las Vegas. I’m in that other party town, New Orleans, attending the annual sales conference of Entertainment One, a potent player in home entertainment — and one whose executives still believe, very strongly, in packaged media.
Entertainment One’s primary business, after all, is in music, and the music side of the company’s business is holding up quite well. Indeed: Entertainment One Music, as it’s officially known, has since its inception as Koch Records charted more than 100 albums on Billboard’s Independent Chart, more than all other U.S. indies, and was the No. 1 indie label, according to Billboard, for four years running.
On the home entertainment side, Entertainment One deals with the same big retail accounts as the studios, from Walmart to Netflix, and in recent years has hired several ex-studio big guns — including Griffin Gmelich (ex-Warner Home Video executive) as VP of video sales and Jeff Chapman (formerly with New Line) as regional sales manager, video — to pitch its DVDs and Blu-ray Discs.
In addition to maintaining its own home video label, Entertainment One distributes product for more than 70 affiliated labels, including Cinevision, Disinformation, Palisades Tartan and S’More Entertainment, the latter run by former Rhino honcho Arnie Schorr.
The grand get-together in New Orleans — all told, there are about 200 people here, mostly Entertainment One employees but also a few retailers, such as Lisa Nishimura of Netflix and Jeff Wyrick of Hastings, as well as distributors VPD and Ingram — is meant to reflect on the past year, look forward to the future and network in the present. About 50 labels are here presenting during the course of four days; at night there are gala networking dinners and parties, including tonight’s concert, featuring various Entertainment One Music artists, at the House of Blues, followed by “Elvira’s Movie Macabre” at The Dungeon.
If the business is hurting, as the quarterly studio numbers suggest, you wouldn’t know it here. The mood is decidedly upbeat, and while most of the product being discussed here is niche — from Tribeca Film Festival favorites to eclectic documentaries, concert films and TV shows — it’s clear there’s still a market for DVDs and Blu-ray Discs beyond the big-budget fare put out by the Hollywood studios.
Touching on a recent column I wrote in which I decried the fact that our industry, by and large, has lost its “human touch” — well, I’m happy to report there’s still quite a bit of it here this week in New Orleans.
The home entertainment industry, I’m afraid, has lost its human touch.
The social experience of walking into a video rental store and maybe chatting with the clerk or other customers before picking out a movie to watch that night has been replaced by a few clicks of the computer mouse to update your Netflix queue.
The rush to pick out a hot new movie the day it comes out on DVD or Blu-ray Disc, where you will likely rub elbows with other fans, has been replaced by complacency that further minimizes the human touch. We wait a day or two, maybe a week, and then toss the movie into our shopping cart as we race down the center aisle to pick up toilet paper and contact lens solution. Or maybe, judging from the way sales have been going, we just wait for it to come out on TV — or while away our evening with Angry Birds on our smartphones.
Inside the business, it’s no different. We don’t see each other much anymore; heck, we don’t even talk on the phone the way we once did, preferring to communicate via Facebook messages or an occasional text.
I miss the periodic events where you saw everyone — the key retailers, the studio presidents and their entourages, the frantic publicists and frazzled marketing executives. The annual VSDA convention is a distant memory; so is the Home Media Summit, two events that fell by the wayside because the studios no longer wanted to support them.
And has it really been a decade since “event marketing” was one of the big buzz words in our business? Grandiose DVD launch events were the norm for awhile there; how I long to see Craig Kornblau ride a camel, as he did for one of Universal Studios’ fabled launch events for The Mummy.
Granted, there are still some studios that do stage elaborate launch events, most notably Warner. But for most there’s barely a press release, and then we wonder why there’s no excitement, no pizzazz.
A lot of us are wondering where this business is heading, why sales are down and we’re no longer seeing record-breaking first-week sales for newly released theatricals. I think we need to look inside. If the movers and the shakers in the home entertainment business aren’t showing any passion, how can we expect the consumers to get excited about our products?
To quote from Bruce Springsteen, “I ain’t looking for praise or pity/I ain’t coming round searching for a crutch/I just want someone to talk to/And a little of that human touch.”
I was surfing the net, looking up new twists in the sordid saga of Rep. Anthony Weiner’s wiener, when it hit me: The slump in DVD sales is probably a result of an unprecedented torrent of entertainment options available for couch potatoes.
I’ve been itching to see Hall Pass, but haven’t had time, keeping up with the latest developments concerning Weiner: the original photo, the tearful confession, the new photo (hint: no underwear) and the various websites and forums where the Congressman’s misguided Tweet is being examined from all angles.
The Drudge Report, the Huffington Post, The Wrap, TMZ, Radar Online – heck, there’s plenty of stuff to keep me occupied for hours.
I’ve even gone to Weiner’s Twitter account to check out who, exactly, he is following – and at least as of this writing, there were still plenty of young women who don’t appear to have anything in common except for the fact that they are all rather attractive brunettes.
I’m not the only one in our house too busy to watch movies lately. My oldest son, who wants to see Hall Pass as badly as I do, has been busy with Facebook and YouTube. Middle son’s also got the YouTube bug – watching “South Park” clips, mostly. And little Hunter keeps snatching my iPhone to play Angry Bird and Zombie Farm. He’s downloaded so many apps I’m having trouble finding my email.
No wonder discs aren’t selling as they used to. We simply don’t have the time.
My hope, though, is that eventually the novelty of all these new entertainment choices, which seem to have sprung up right around the same time, will start to wear off and we’ll go back to our movies and TV shows on disc.
Kids are notoriously fickle. I think their absence is a key factor behind the slump in disc sales. One studio executive told me recently that while the VTR (video-to-theatrical ratio) for big animated feature films used to be between 60% and 70%, it’s now in the low 30s. They’re not watching movies at home because they’re too busy with Angry Bird, but, again, we’ve seen this time and time again over the years with each new fad, and in each case a slump is invariably followed by a resurgence.
Good sign: Hunter and his pals the other night enjoyed a Shrek marathon on Blu-ray. They watched all four films, one after the other, and then whined when I told them there wasn’t going to be a fifth.
It’s the adults I’m most worried about. It used to be the only real drain on home video came every four years when the Olympics were on TV.
Now, it seems, there’s always something.
This latest slump? Blame it on Weiner.
It's a pity the first quarter couldn't have ended a week later. The same week the news hit that disc sales had plummeted nearly 20% in the first three months of this year, Warner Home Video released Harry Potter and the Deathly Hallows — Part 1 and promptly triggered a disc-buying frenzy the likes of which we haven't seen in some time. Consumer spending rose by the double digits, and since Warner Home Video holds back its titles 28 days from leading rental outlets Netflix and Redbox, buying Deathly Hallows was the only way to see it — unless you happen to be lucky enough to still live by a brick-and-mortar video rental store.
Like it or not, DVD and even Blu-ray Discs are now seen as a commodity, not a novelty. Disc sales are going to live and die by their box office, although smart scheduling — tip o' the hat, Team Warner! — and strong marketing certainly can have an impact, as well. But the days when a studio could put any old movie out on disc and realize respectable sales are long gone. If a movie tanks at the box office, it's going to tank on disc, regardless of timing, regardless of marketing.
Theatrical dealt our industry a cruel hand in the first quarter of this year, and while our industry played it as well as it possibly could have, we still lost. Not only did disc sales to consumers take a nosedive, but the press jumped on the decline as just another affirmation of its belief that packaged media is a dinosaur and discs of all types — CDs, DVDs, even Blu-ray Discs — will soon go away. The disc-is-dead chant has become something of a mantra among the media, and I fear no amount of data or other evidence to the contrary is going to change that. It's sort of like the controversy over President Obama's birth certificate: all right, he's produced it, we've all seen it — and yet there are still those who insist the document must be forged and there's no way the President could possibly have been born in the United States.
We at Home Media Magazine — which is now part of the Home Media Group, a rebranding I believe better reflects all the different things we do in the area of content creation and aggregation, market research and analysis — will soon have before you a White Paper on Blu-ray Disc, coinciding with the format's fifth anniversary.
In a succinct, easy-to-digest format, we are presenting the facts about this remarkable format: software, hardware, what it is and what it does, why it was developed, and how it's doing. And if you take a step back and look at the parade of facts and figures that have accompanied the Blu-ray Disc format since its commercial birth in 2006, you witness a most compelling success story made all the more remarkable by its roots in a format war and adolescence during the worst recession since the Great Depression. Against almost overwhelming odds — certainly far worse conditions than DVD ever had to contend with — Blu-ray has revolutionized home entertainment and established itself as the "now" as well as "future" format for home entertainment.
Our white paper will be published at the end of May. Watch for it.