Lionsgate Making $15-$21 Per Blu-ray Movie

[Ian]

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

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.

[Grain]

[Grain]

[Gen-An]

And this is better for consumers?

[dolphinius_rex]

And this is better for consumers?

That depends.... do you want extra features on your discs? They have to be paid for SOMEHOW. And High-def mastering is much more expensive then SD mastering.

Personally, I don't think it's that unfair. But I also know that saying "makes $15-$21 per Blu-Ray" doesn't take ANY of the costs not immediately associated with disc manufacturing or distribution into consideration. So it's a little skewed.

[Ian]

It says "clear margin". I'm no economist, but doesn't that suggest a profit after things like manufacturing costs, etc.

[dolphinius_rex]

It says "clear margin". I'm no economist, but doesn't that suggest a profit after things like manufacturing costs, etc.

I *HIGHLY* doubt it takes into consideration the cost of paying people to do the commentaries and build the special features included on the disc. It's probably just raw manufacturing costs, and shipping costs to handle distribution.