DVD sales gets worse in ’08 – Pali Research

March 10, 2008

dvds-broken.jpgToo little too late, at least for 2008. Hollywood’s long awaited decision to back a winner in the single next-generation DVD wars didn’t come fast enough to stem a further decline in DVD sales this year, according to Pali Research’s Richard Greenfield.Greenfield now expects consumer spending on DVDs to fall 4 to 5 percent this year, compared to a 2 percent decline in 2007, despite an anticipated tripling of Blu-ray DVD sales this year. Blu-ray won’t start slowing the decline until 2009-2010.Slowing sales of older titles, Wal-Mart’s decision to clean up its aisles by eliminating “dump bins” of discounted titles, and anticipated Internet service bandwidth increases that could boost piracy of video are also expected to pressure sales of physical media.Perhaps there is still time for DVD and Blu-ray to make nice with consumers. Sony’s U.S. chief said consumers prefer physical discs to Internet delivery, and that it could take a decade before downloading hits its stride.(Photos: Reuters / This is what they do to pirated DVDs in Bucharest.)

Diller, Malone: Battle of the moguls kick off

March 10, 2008

bulls.jpgIts a (media) heavyweight battle: IAC’s Barry Diller vs Liberty Media’s John Malone.Not since former Disney chief Michael Eisner and one-time Hollywood super agent Michael Ovitz squared off has the media industry seen as contentious a battle as the one we’re about to witness in Delaware on Monday as Diller and Malone fight in court over control.Long-time business partners are dueling over Diller’s move to break up the company in a plan that would eliminate IAC’s dual class share structure, which gives Malone’s Liberty some 62 percent of the company’s voting power. Under a longstanding agreement, Diller has been able to vote Liberty’s stake. Liberty now says IAC has breached that agreement by going against Liberty’s wishes.PaidContent posted a copy of Diller’s pre-battle message to troops.Eleventh-hour settlement hopes ahead of the trial have largely been dashed. Although there is still about a hour to go before the trial starts. Citing unnamed sources, NY Post says these talks are likely to continue through the week.Let the games begin.(Reuters)Keep an eye on:

    The hair-twirling, the fidgeting, the interjections. BusinessWeek columnist Sarah Lacy learns how not to do an interview with Facebook’s Mark Zuckerberg, when the crowd at South by Southwest Interactive turns on her. (News.com) Top six U.S. cable operators aim to spend $150 million to create a jointly owned company to court advertisers on a national scale. (NYTimes) Facebook, en Francais. (Reuters) MySpace’s talks with music industry heats up, considers launching service without Universal Music Group. (FT)

(Photo: Reuters)