Some months ago producer and former 20th Century Fox honcho Peter Chernin spoke to producer Lynda Obst for her book, Sleepless in Hollywood: Tales of The New Abnormal in the Movie Business, and here’s how he described things: “[The] studios are frozen…terrified, not necessarily inappropriately, to do anything because they don’t know what the numbers look like.”
What they don’t know, more specifically, is “how to run a P & L” — a profit-and-loss statement for their board members — “because [they] don’t know what the DVD number is.’ The DVD number used to be half of the entire P & L!” Wait…today’s home video “numbers” are mainly about VOD and streaming before DVD/Bluray, right? Bluray is niche and DVD is strictly bargain-basement. I realize that the collapse of the DVD market four or five years ago cut heavily into profits and that VOD and streaming sales are delivering…what, a third of what the DVD market was at its height? But studio guys can’t at least project what VOD and streaming revenues will be?