No 'Harry Potter' Disc Undermines Warner Q4 Income2 Feb, 2011 By: Erik Gruenwedel
Decreased sales of movie discs combined with higher theatrical print and advertising costs resulted in Warner Bros. Studio posting fourth-quarter (ended Dec. 31) operating income of $427 million, down $9 million from operating income of $436 million during the previous-year period.
Warner Bros. properties, which include Warner Home Video, generated quarterly revenue of $3.6 billion, up $316 million from last year due to higher television licensing fees, notably from “Two and a Half Men,” starring troubled actor Charlie Sheen.
For the fiscal year, operating income increased $23 million to $1.1 billion, despite home video revenue facing difficult comparisons to the prior year, which benefitted from higher catalog sales and the release of Harry Potter and the Half-Blood Prince.
Warner Home Video ended 2010 ranked the No. 1 in DVD sales, Blu-ray Disc sales, transactional video-on-demand and electronic sellthrough.
The studio last week generated 12 Oscar nominations, including eight for Christoper Nolan’s landmark Inception; two for Harry Potter and the Deathly Hallows: Part 1; and one each for The Town and Hereafter.