So You Say Studios Are Spending Money to Make Money? Huh...

A very good and detailed analysis from the Hollywood Reporter on the final proof in the pudding of the importance of DVD revenues to studios (see article):

Nielsen Monitor-Plus estimates that the home entertainment divisions of the top nine movie studios spent $887.5 million to market their titles in 2003, up nearly 26% from $705.6 million in 2002.

With an overall per-title average of nearly $1.6 million and $3 to $4 million spends on large grossing films, studios are working hard to push revenues in the lucrative home video window.

And it's getting crowded and accelerated just like the theatrical window. According to the article, because big box retailers are providing the discs at a discount for the first week of sales, 50% of total sales can be derived during this period. So studios need to roll out bigger campaigns earlier to drive awareness and sales during this week.

Not unlike the creeping, some would argue racing speed, of advertising dollars at the box office, DVDs are demanding higher investment for their higher return (and margins).

The world is speeding up and the cost of controlling it skyrocketing.