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Analyst: 3-D Format to Hurt ‘Monsters vs. Aliens’ DVD Sales

8 Apr, 2009 By: Erik Gruenwedel

Monsters vs. Aliens

Citing box office revenue from Monsters vs. Aliens being driven largely by 3-D, one analyst has projected a 28% decline in future DVD and Blu-ray sales of the DreamWorks Animation’s release.

Pali Capital analyst Richard Greenfield said he expects global packaged media sales to total 10 million units, down from prior projections of 13.8 million units.

The analyst cited the film’s heavy emphasis on 3-D and the fact that just 31% of the movie’s opening weekend screens were 3-D, yet they generated 46% of the total audience and 56% of the box office.

Greenfield said the strong 3-D results underscored a future for the format but also emphasized that the excitement surrounding 3-D drove attendance compared to the 2-D release.

“If we are right, our concern is that the Monsters vs. Aliens DVD will struggle as in-home 3-D is not yet a reality,” Greenfield said in a research note.

He said domestic box office revenue for the film could still come close to his $186 million forecast at $174 million, but international theatrical revenues would fall to about $245 million from $297 million.

“Our key fear noted during the ‘Monsters’ screening we attended is coming to fruition, namely limited international appeal due to the U.S. focus of the film,” Greenfield wrote.

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