Bewkes: Warner to Cut Film Production 50% by 2009

[gadgtfreek]

Home Media Magazine | Bewkes: Warner to Cut Film Production 50% by 2009

[FONT=arial, helvetica, sans-serif]
“Our motivation is to improve our return on capital,” Bewkes said. “Doing that we believe we can move profit up.”

To accomplish this, the CEO said the studio will focus on building wider consumer adoption of Blu-ray, expanding cable video-on-demand simultaneously with standard DVD (Bewkes said cable VOD generated more than three times the margins of DVD rental) and other electronic distribution. [/FONT]

[FONT=arial, helvetica, sans-serif]He said DVD has been a reliable revenue generator for all studios the past five years. Bewkes said that for every $100 in box office revenue, Warner Home Video extracted more from DVD. [/FONT]

[FONT=arial, helvetica, sans-serif]Bewkes said expansion of Blu-ray, VOD and related improvements in electronic distribution by moving away from physical DVD would help grow filmed entertainment. [/FONT]

 

[navychop]

I wonder how this will work out for them? With credit the way it is, for risky prospects like movies, I gather they have little choice.

 

[gadgtfreek]

Its not the first time Ive seen someone say the studios are getting ready to cut back on what goes to the movies.

Lets face it, they've been putting out some crap lately, so its not all the economies fault.

 

[vurbano]

Bad news.