Lionsgate Making $15-$21 Per Blu-ray Movie
Posted: Fri Apr 04, 2008 11:03 am
And here we thought that DRM was the main motivator for studios to go Blu-ray. According to THR, Lionsgate is making $15 per disc for old titles and $21 for new releases.
http://www.hollywoodreporter.com/hr/con ... ac4a8cf80d
http://www.hollywoodreporter.com/hr/con ... ac4a8cf80d
Lionsgate Entertainment will benefit greatly from Blu-ray's victory in the DVD format war, so shareholders will naturally be rewarded.
SMH Capital analyst David Miller said this week that Lionsgate clears $15 per Blu-ray unit in clear margin for library titles and a whopping $21 for new titles like "War."
And, the kicker is, he estimates Lionsgate sold an additional 1.3 million units of Blu-ray library product relative to his projections just a few weeks ago as the demise of HD DVD has sparked sales for Blu-ray.
As a result, Miller boosted his fiscal fourth-quarter revenue projection from $400.1 million to $419.1 million and his earnings-per-share estimate from 44 cents to 46 cents.