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Non-Tech : Marvel Enterprises (NYSE)
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To: stockid who started this subject6/18/2003 9:48:57 AM
From: OmertaSoldier  Read Replies (2) of 540
 
Studios Increase Home Video Spending
$1 Billion In Ads In 2003.......Will only help Marvel!!

June 16, 2003
Video Business is reporting that Hollywood studios, which increased advertising on home videos by 72% in 2002, are about to raise the ante another 30% in 2003, pushing the total from $800 million in 2002 to over a $1 billion in 2003. The increased spending on home video is one of the primary reasons that TV networks were able to garner a record $9.2 billion in "upfront" bookings this year -- up a solid 12% in a very uncertain economy. Much of the action is concentrated in the fourth quarter when many of the summer "tentpole" films such as X2: X-Men United, Bruce Almighty, 2 Fast 2 Furious, and Finding Nemo will be released. Add in popular catalog titles like the Indiana Jones Trilogy (see "Indiana Jones Headed To DVD") and it's easy to see why the studios are trying so hard to cut through the clutter created by big time competitors.



PricewaterhouseCooper's has estimated that this year's home video market will top $14 billion and will grow to $21 billion by 2007. Given the fact that studio margins are higher on DVDs than on box office admissions, the lure of the home video market is very easy to understand. For pop culture retailers this means that major movie properties will typically get two rounds of serious television advertising -- and the "branding" effect of TV advertising should be more apparent than ever on long-running movie franchises.
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