Downloading Doesn't Hurt TV DVD Sales, Says Disney Exec

[Loomis]

According to IMDB:

Making TV shows available for downloading online does not affect DVD sales of the same shows, according to Disney CFO Tom Staggs. As reported by Home Media Retailing magazine, Staggs told a British investors meeting Tuesday that online sales actually boosted DVD sales of the second season of Lost. "That bolstered our view that we think this wasn't cannibalistic," said Staggs. "In fact, we think there is a good likelihood that this keeps people involved in the shows more deeply." Staggs said that during a two-month trial this summer, visitors to the ABC site downloaded 5.7 million episodes of Desperate Housewives, Grey's Anatomy, and Lost. This fall, four newcomers are being added, including Ugly Betty, Six Degrees, The Knights of Prosperity, and The Nine.

This is actually quite progressive on the part of Disney, especially following the comments earlier in the year by Iger, who believed the theatre-to-DVD window should close, even suggesting that DVDs be sold in concession stands to grab the market immediately!

Thoughts?

[Soulquarian]

Re: Downloading Doesn't Hurt TV DVD Sales, Says Disney Exec

According to IMDB:



This is actually quite progressive on the part of Disney, especially following the comments earlier in the year by Iger, who believed the theatre-to-DVD window should close, even suggesting that DVDs be sold in concession stands to grab the market immediately!

Thoughts?

In reference to downloads and tv show box set figures, I think that's specifically because the majority of Americans don't know you can watch them online, and if they do, they probably don't.

I can't name more than 5 people that have watched tv online, and even then I'm stretching.

As for the theatre-to-DVD window, I really think shrinking it down to an equal release date will kill off the theatre. Even now, they have to advertise tv shows, allow business to hold meetings in theates, allow colleges to use theatres as classrooms, and now, most of the competitors have joined together!

[cellarhound]

Re: Downloading Doesn't Hurt TV DVD Sales, Says Disney Exec

There are a great many households who own a computer but do not get cable/television... Just like some have a way to play movies but not cable... People are beginning to spend more time online then they do watching TV or going to see a film, etc...

Talk about tapping into a market... DUH...

I think that Video Rental places are in trouble... Even TiVo is in trouble...

Theatres aren't in as much trouble as they think... But they will have to adapt, consolidate, and inovate in order to survive...

[sediment]

Re: Downloading Doesn't Hurt TV DVD Sales, Says Disney Exec

I think that Video Rental places are in trouble... Even TiVo is in trouble...

I think TiVo could fix itself by providing downloading capabilities from the web to its boxes, for viewing at a later time. I notice that NBC has an "in-demand" channel on my new Time-Warner cable lineup. What I'd like is to be able to record from that channel to my TiVo at any time, as my TiVo box cannot record two things simultaneously, and today is Thursday. As it stands, I have to watch whatever I'm inDemanding right then and there. And that means going through the cable box instead of the TiVo box.

TiVo is hanging onto its superb front-end appearance. My bro-in-law has DirecTV and is clinging to his old box, because the format is so much better than the others'.

TiVo could lease out its front-end to others.

[Loomis]

Re: Downloading Doesn't Hurt TV DVD Sales, Says Disney Exec

The thing is, people wathcing online may not be in the majority NOW, but they will be one day.

Disney already made the mistake once of underestimating the power of the Internet, only trying to jump onboard with the online portal "Go.com" far too late in the game.

My original statement about this being an encouraging step stands. Many studios still have their heads in the sand thinking that online downloading and other delivery methods can be stamped out as competition, rather than embracing the full earnning capacity of them. A recent comparison would be with the music industry who stamped out Napster (effectively) and like-minded groups, before finally giving the whole thing legitimacy by throwing themselves wholeheartedly into iTunes. The latter has been a success story, but it could have been done earlier.

[figment1986]

Re: Downloading Doesn't Hurt TV DVD Sales, Says Disney Exec

the mketch with download watching... your still paying for it somehow... but you dont get the special features like director comentary or behind the scenes or cut scenes...

DVDs provide that, so in the end.. internet should in thery provide another medium to see it once... before getting DVDs and seeing them more times..

[DisneyMickey]

Re: Downloading Doesn't Hurt TV DVD Sales, Says Disney Exec

I don't know anyone who watches tv on their computer just because it can be a pain sometimes if your screen resolution sucks or if the screen is small.

But what really impresses me on Disney's part is selling its tv show, movies, and music on iTunes. It really gets Disney out there in the eyes of young and old generations. Plus the selection includes some of their best movies. And since Disney is the only company distributing movies on the program, you see a lot more of Disney in its self. Smart move on their part. But the whole ABC isn't as much a big deal. At least I know I can catch an episode if I miss it on tv.

[Soulquarian]

Re: Downloading Doesn't Hurt TV DVD Sales, Says Disney Exec

The thing is, people wathcing online may not be in the majority NOW, but they will be one day.

Why would people sit in front of their computers to watch something when they can watch them on their giant HDTV's?

My original statement about this being an encouraging step stands. Many studios still have their heads in the sand thinking that online downloading and other delivery methods can be stamped out as competition, rather than embracing the full earnning capacity of them. A recent comparison would be with the music industry who stamped out Napster (effectively) and like-minded groups, before finally giving the whole thing legitimacy by throwing themselves wholeheartedly into iTunes. The latter has been a success story, but it could have been done earlier.

Honestly, if we weren't allowed to get songs for free via Napster, I don't think online distribution would have caught on like it did.

But who knows... people spend 3.99 for a 10 second clip for their phones.

There are a great many households who own a computer but do not get cable/television... Just like some have a way to play movies but not cable... People are beginning to spend more time online then they do watching TV or going to see a film, etc...

Got some numbers for that statement?

I think that Video Rental places are in trouble... Even TiVo is in trouble...

I think TiVo could fix itself by providing downloading capabilities from the web to its boxes, for viewing at a later time. I notice that NBC has an "in-demand" channel on my new Time-Warner cable lineup. What I'd like is to be able to record from that channel to my TiVo at any time, as my TiVo box cannot record two things simultaneously, and today is Thursday. As it stands, I have to watch whatever I'm inDemanding right then and there. And that means going through the cable box instead of the TiVo box.

TiVo is hanging onto its superb front-end appearance. My bro-in-law has DirecTV and is clinging to his old box, because the format is so much better than the others'.

TiVo could lease out its front-end to others.

I don't really see TiVo having a problem. They already provide a service that beats online tv viewing... The ability to put your programs on portable devices. Wifi is nowhere near mainstream, and although one day it probably will be, right now it's extremely convient to be able to upload a tv show on my PSP and take it with me rather than lug my laptop around, hoping to find wifi somewhere, and then paying to use the internet to watch my favorite shows.

Kudos to Disney for their variety, but I really don't think watching tv online is the future. TV on the go yes, but via your computer? Not so much.

[sediment]

Re: Downloading Doesn't Hurt TV DVD Sales, Says Disney Exec

I don't think the local network affiliates care too much about the DVD sales, anyway.
And I'm sure networks wouldn't give away content for free if it actually led to lower profits.
What they're concerned about is the fact that this separate content channel, so to speak, is sucking the audience away. That leads to lower local 11:00 news watching and lower profits for the affiliate.

And the poor quality is what keeps me from staring at a small box on my small PC screen. Call me when it's high-def filling my plasma TV.

[Loomis]

Re: Downloading Doesn't Hurt TV DVD Sales, Says Disney Exec

Why would people sit in front of their computers to watch something when they can watch them on their giant HDTV's?

Again, that is true NOW, but companies like Disney have to have a mind for the future. The dleivery system is the important thing here. I don't think either HD-DVD or Blu-Ray are truly the future of home entertainment, but some kind of hard-disk downloadable delivery system will be how we buy our home entertainment one day. No harm in getting in on the ground floor.

As I said, Disney are probably wary of missing out after the Go.com fiasco.

[pizzamousechips]

Re: Downloading Doesn't Hurt TV DVD Sales, Says Disney Exec

This all sounds a bit too familiar.

2001, 2002 - Piracy oh noes!

2003, 2004 - CD sales up despite the jump in illegal mp3 downloads, everything seems fine, but let's push piracy awareness anyway.

2005, 2006 - Lowest CD sales in what, nine years? On top of that, digital sales are way, way up.

---

If history repeats itself, TV DVD sales will be peaking quite soon (Heck, I'm buying more than I ever have). In less than a few years, though, they'll go back down, and online downloads will be huge.

[/speculation]

[Soulquarian]

Re: Downloading Doesn't Hurt TV DVD Sales, Says Disney Exec

Again, that is true NOW, but companies like Disney have to have a mind for the future. The dleivery system is the important thing here. I don't think either HD-DVD or Blu-Ray are truly the future of home entertainment, but some kind of hard-disk downloadable delivery system will be how we buy our home entertainment one day. No harm in getting in on the ground floor.

As I said, Disney are probably wary of missing out after the Go.com fiasco.

I agree that it's good for Disney to be thinking ahead. I just don't see computer screen replacing tv screens in the home. On the go yes, in the house probably not. I'd love to stream lost episodes anywhere via wifi on my PSP/iPod Video/some new sexy electronic device.

This all sounds a bit too familiar.

2001, 2002 - Piracy oh noes!

2003, 2004 - CD sales up despite the jump in illegal mp3 downloads, everything seems fine, but let's push piracy awareness anyway.

2005, 2006 - Lowest CD sales in what, nine years? On top of that, digital sales are way, way up.

---

If history repeats itself, TV DVD sales will be peaking quite soon (Heck, I'm buying more than I ever have). In less than a few years, though, they'll go back down, and online downloads will be huge.

[/speculation]

TV DVD is already starting a downward slope. The market is over saturated. On the flipside, it means that you have a better chance of getting boxsets of lesser known tv shows, or ones that normally wouldn't be as popular as say Seinfeld, Lost, or Desperate Housewives. I nearly fell out of my seat when Ducktales and Dinosaurs were announced.