M+E Daily
DVD, Blu-ray Sales Lift Viacom Profits In Fourth Quarter
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Viacom reported Feb. 11 a $214 million increase in fourth-quarter profitability for its filmed entertainment unit, reflecting among other things a higher year-over-year contribution from Paramount Pictures’ domestic DVD and Blu-ray releases.
Worldwide home entertainment revenues of $1.15 billion represented a 12% increase over 2008’s fourth quarter results, with strong DVD and Blu-ray sales for Paramount’s “Transformers 2: Revenge of the Fallen,” “Star Trek” and “G.I. Joe: The Rise of Cobra,” Viacom said.
Viacom’s announcement follows similar news from The Walt Disney Company, which credits its home entertainment unit with boosting studio profits during its most recent quarter.
“Paramount Pictures significantly boosted its profitability in 2009 as the studio’s strategy of producing a smaller slate of films, anchored by franchises, began to pick up momentum,” said Philippe Dauman, Viacom President and CEO. “We also were pleased to see renewed consumer demand for our new DVD and Blu-ray releases in the fourth quarter.”
Viacom’s filmed entertainment revenues declined 9% to $5.48 billion for the year overall, however, primarily due to lower theatrical and home entertainment revenues. A smaller slate of films was the primary driver of the 23% decrease in worldwide theatrical revenues of $1.32 billion. Worldwide home entertainment revenues were down 8% to $2.50 billion for the year reflecting fewer releases as well as what the media conglomerate called “continuing softness in the market.”
