ABSTRACT
The ability to watch a movie or TV show at home on a DVD or Blu-ray disc, and previously on videocassette tape, has had a profound impact on the economics of the motion picture and television business. In terms of profitability, for decades the video market provided a boon to studios’ bottom lines. While the profitability on a new movie is generally measured in a single life cycle (e.g., theatrical, video, television, ancillary, and new media revenue streams), the video market added the magic of reincarnation by inducing consumers to keep buying the same product again and again with each new technological upgrade. To grasp the value-for-money proposition inherent in marketing a DVD of a hit movie, simply pause to think about one of favorite films. “Made-for-video” titles are often confused with releases that may otherwise go direct to video.
