The downturn in the dvd and home video entertainment market has been widely reported for some time as it affects every aspect of a film budget and profitability for the distributors. The major Hollywood studios have stated significant reductions in revenues due to the decline.
While new media outlets, including VOD, Netflix, Hulu and Amazon have taken up the demand for home entertainment, the income generated is not nearly close to making up for the loss to the industry's bottom line.
The Walt Disney Studios announced last week it would layoff 200 or 5% of its workforce, mostly in distribution but some in home video as well. Fox Home Entertainment has fared better as a distributor of other production and distribution companies home entertainment in addition to their own, however the have announced today a layoff coming of about 22 employees.
Likewise Lionsgate Films recently announced a round of workforce reductions. All of these actions are claimed to be a result of the decrease in rental and sell through revenue to their coffers.
The continued turmoil in the industry, combined with difficult to find film finance and the current pull back in state sponsored film tax incentives must impact the film budget of every production. Now more than ever before it is critical that a production film budget and schedule be as accurate and proven as possible, and created by a professional line producer with extensive experience and track record.
Read The Wrap article
While new media outlets, including VOD, Netflix, Hulu and Amazon have taken up the demand for home entertainment, the income generated is not nearly close to making up for the loss to the industry's bottom line.
The Walt Disney Studios announced last week it would layoff 200 or 5% of its workforce, mostly in distribution but some in home video as well. Fox Home Entertainment has fared better as a distributor of other production and distribution companies home entertainment in addition to their own, however the have announced today a layoff coming of about 22 employees.
Likewise Lionsgate Films recently announced a round of workforce reductions. All of these actions are claimed to be a result of the decrease in rental and sell through revenue to their coffers.
The continued turmoil in the industry, combined with difficult to find film finance and the current pull back in state sponsored film tax incentives must impact the film budget of every production. Now more than ever before it is critical that a production film budget and schedule be as accurate and proven as possible, and created by a professional line producer with extensive experience and track record.
Read The Wrap article
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