Warner: VOD strategy is not hurting disc sales

By mattdentler | Matt Dentler's Blog May 27, 2009 at 6:45AM

Warner: VOD strategy is not hurting disc sales
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Warner Bros. will continue to try the day-and-date strategy for DVD and VOD releases, after seeing some promising results thus far. The question has loomed large over film distributors for years: does a day-and-date home video release across platforms create cannibalization? The optimists and digital strategists out there (including yours truly) have said "no way" but it's nice to have the validation from major media companies, since they are traditionally the ones most reluctant to these new models. From a recent Video Business article on the DVD/VOD releases:

The June movie slate is packed with films debuting on video-on-demand the same day they hit DVD, at least if they’re from Warner Home Video.

The studio is continuing its strategy of releasing nearly all of its films simultaneously on DVD and VOD with ensemble anti-date flick He’s Just Not That Into You on June 2, Clint Eastwood’s Gran Torino June 9, Friday the 13th June 16 and fantasy/adventure Inkheart June 23.

Warner has said the simultaneous release strategy boosts VOD sales without hurting disc sales.

Doug Sylvester, president and chief operating officer of TVN Entertainment, which packages VOD movies for cable companies and others, said in a statement about June’s day-and-date releases that consumers are responding “in a big way.”