Cameron Douglas Promoted to SVP, OTT/Streaming at Fandango

Cameron Douglas has been promoted to SVP of OTT/streaming at Fandango Media LLC, the Beverly Hills, Calif.-based movie ticketing company that also owns digital retailer Vudu and reviews aggregator Rotten Tomatoes.

Douglas previously served as VP of home entertainment and Lead Executive of Vudu.

“Cameron is a veteran media executive, who has helped shape the landscape of digital home entertainment, especially in the transactional space,” said Will McIntosh, president of Fandango and NBC Sports Next. “At Fandango, he’s helped the company stay nimble and opportunistic post-pandemic and continues to be dedicated to serving tens of millions of entertainment consumers across the entertainment lifecycle, and being the best partner to studios, brands and device manufacturers.”

A Stanford University graduate, Douglas joined Fandango in February 2016 and over the ensuing seven years has overseen the company’s digital retail operation, which was rebranded from FandangoNow after the acquisition of Vudu from Walmart in July 2020. Since then, Fandango has firmly established itself as one of the top players in the competitive transactional space, and the market leader in the digital content collector market. 

He also oversees Vudu’s fast-growing AVOD service, which offers thousands of movies and TV shows viewers can watch on demand, for free.

In his new role, Douglas will continue to oversee Vudu and pursue future enhancements to Fandango’s overall streaming portfolio.

“I’m pleased to continue being part of a great organization with such dynamic leadership,” Douglas said. “We appreciate the importance of OTT in modern content distribution, and remain committed to delivering premium entertainment to consumers at home as soon as it becomes available.”

Douglas began his career in 1986 at Showtime Networks, where he worked in Affiliate Marketing and Programming while pursuing his MBA at Carnegie Mellon University’s Tepper School of Business.

He later two years as senior operations and product manager at record and video retailer Musicland before joining The Walt Disney Co. in 1990, where over an eight-year run he rose to retail marketing manager. He was a key home video executive under Bill Mechanic and then Ann Daly.

In 1998 Douglas began a seven-year engagement as director and then executive director of retail marketing at 20th Century Fox Home Entertainment. He subsequently spent one year as head of retail marketing at DreamWorks SKG and six years as VP of retail marketing at what is now Paramount Home Entertainment.

Douglas moved into digital entertainment in 2013 as SVP of content for M-GO, the DreamWorks-Technicolor joint venture that three years later was acquired by Fandango and rebranded as FandangoNow.

In 2018, Douglas was elected chairman of OTT.X, the trade group for the streaming industry.

Earlier this year, he also joined the board of digital entertainment trade association DEG: The Digital Entertainment Group, bringing to the group what DEG calls “a deep understanding of entertainment lifecycles, from theatrical through transactional windows and beyond.”

Fandango is owned by Comcast Corp. and is part of NBCUniversal.

Looking Ahead: Lessons From the Pandemic to Guide 2022 Home Entertainment Strategies

The uncertainty over the COVID-19 surge triggered by the emergence of the Omicron variant has made any and all predictions for the coming year suspect. Life could go back to normal fairly quickly or we will continue to battle surges and adjust our lives accordingly. Most observers don’t see us going back to the draconian shutdowns and lockdowns of the early days of the virus, but studio executives and exhibitors are understandably nervous about the current and any future surges since theatrical attendance could suffer — which ultimately affects everyone down the food chain.

The home entertainment business weathered the initial COVID crisis quite well, with streaming growing stronger and transactional video-on-demand (TVOD) winning a premium first-run window. That said, there are several “givens” as 2022 gets underway.

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Netflix, Disney+, HBO Max and the other high-profile streamers will continue to battle for dominance, with Netflix doing everything in its power to reduce churn and not lose market share. The second tier of SVOD players, including Paramount+ and Peacock, will make as much noise as possible to win a seat at the table — as evidenced by Peacock’s recent announcement that it will be streaming the winter Olympics in their entirety.

On the transactional side, a lot depends on the fate of movie theaters as this pandemic lumbers on. The early pandemic led to an overall shortening of windows and new-release strategies that ultimately benefited both home entertainment divisions and digital retailers such as Vudu by Fandango, Redbox On Demand, Microsoft and Google Play.

Jim Wuthrich

But while TVOD, and physical media, benefit from shorter windows, it is also impacted by studios accelerating, or re-ordering, SVOD windows. A film available as part of an all-you-can-watch subscription streaming service simply isn’t going to sell or rent nearly as well as it would if there was no “free” competition. And that plays into the bigger picture that the more consumers tune in to SVOD services, the less likely they are to purchase or rent something a la carte.

Jim Wuthrich, president of content distribution for WarnerMedia, says he’s “optimistic that we’ll continue to adapt to the changing nature of COVID and learn to live with it.”

“Although there are many challenges, we’ve learned how to be productive with a distributed workforce, productions are largely back and there’s more consumer choice than ever before — both in amount of content and ways to view,” he says. “It’s a great time to be a fan of linear storytelling. We will continue to improve and expand HBO Max to more markets, while providing a la carte options for fans and collectors. SVOD services will continue to dominate viewing time, with transactional supporting a vital role in discovery, sampling and fandom. Physical media (4K/Blu-ray/DVD) continues to be a meaningful market, with approximately $2 billion in U.S. consumer sales, and largely immune to evolving distribution patterns.”

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On the WarnerMedia side, Wuthrich says, “We have a great movie slate, with four DC films coming to theaters and another installment of ‘Fantastic Beasts.’ We also have a number of series releasing, including the new ‘House of the Dragon,’ a ‘Game of Thrones’ prequel. History has shown these franchises to be powerhouses in driving catalog sales so we are looking forward to a great year.”

Michael Bonner

“Similarly to 2021, we expect a very healthy home entertainment market in 2022, with strong consumer engagement across multiple business models,” says Michael Bonner, president of Universal Pictures Home Entertainment. “Release patterns will likely continue to fluctuate and vary across studios on a title-by-title basis.   

“With the theatrical marketplace continuing to strengthen, the growth of PVOD and the expansion of various SVOD services, the distribution landscape is stronger than ever. As we look ahead, studios have more options and outlets to create value and reach consumers which strengthens our ability to continue investing in great content.”

Bonner maintains that Universal, with its slate of anticipated new releases including Jurassic World: Dominion, Minions: The Rise of Gru and Downton Abbey: A New Era, “is perfectly positioned to draw audiences back into theaters and fuel further transactional growth across the varying windows and platforms.”

Paramount Home Entertainment president Bob Buchi says that “as the global hub for transactional home entertainment across ViacomCBS, our division is exceedingly fortunate and singularly focused on delivering an extraordinary 2022 line-up of the company’s theatrical and television content, as well as third-party acquisitions through our extensive partnerships.”

Bob Buchi

“Our theatrical slate includes new entries in wildly popular franchises, including ‘Scream,’ ‘Top Gun,’ ‘Mission: Impossible,’ ‘Sonic the Hedgehog’ and ‘Jackass,’ which are not only highly anticipated, but also provide excellent opportunities to stoke fan interest in the earlier films and television shows available through home entertainment,” he says.

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On the catalog front, Buchi adds, the division’s most ambitious initiatives are the year-long 50th anniversary salute to The Godfather, “for which we anticipate massive consumer excitement for the film’s return to theaters, new 4K home entertainment releases, and licensed merchandise,” and the first-time-on-4K director’s edition of Star Trek: The Motion Picture, “with fantastic new VFX, which will be released first on Paramount+ and then on home entertainment platforms.”

Cameron Douglas, VP of home entertainment for Fandango, which oversees the Vudu digital retailer, also has high hopes for the new year.

“We expect the TVOD sector to deliver even more value to consumers, as fans sort through a fragmented streaming world, looking for a one-stop-shop entertainment service for movies and TV,” he says. “Because subscription services, by their nature, cater to specific audiences and content offerings, we continue to see consumers utilizing the flexibility, depth and breadth of Vudu’s new release and catalog offering of over 200,000 titles to complement their monthly entertainment needs.”

Cameron Douglas

Douglas says Vudu “is working hard to expand our catalog every day. It’s both a challenge and an opportunity, as we continue to secure new and previously unavailable titles. There’s a variety of titles where digital rights were originally unsecured, but with the demand increasing, there’s more pressure than ever to make these films available for fans to stream at home. We pride ourselves on providing the best quality of experience and we are always working to create a bigger, better home entertainment experience for our customers. We want to be that place where fans can find every beloved movie and show they desire.”

At the top of Vudu’s agenda for the coming year, Douglas says, are plans “to innovate new services for our customers and add new platforms and devices to meet the fan demand in an ever-changing marketplace. We also plan to offer deeper integration with our sister sites, Rotten Tomatoes, for entertainment discovery, recommendation and curated content, and Fandango for crossover promotional opportunities to help enhance the theatrical experience. With our entertainment lifecycle marketing strategy, we look forward to helping new and returning partners more effectively and efficiently reach high-value entertainment audiences at scale.”

The big challenge for home entertainment executives in the coming year is to apply lessons they learned during the pandemic and react quickly to market conditions.

Paramount’s Bob Buchi says that “with two years of experimentation and the expedited evolution of our business, we know we need to remain agile in our windowing and co-promotional strategies as we continue to support the return to theaters and the rapid growth of our streaming service, Paramount+.”

Adam Frank

Adam Frank, SVP of global digital sales and distribution at Lionsgate, says what happens at the box office will trickle down into all aspects of home entertainment.

“Our expectation, given the quality and quantity of the theatrical release slate, is that box office sees significant increase and momentum in 2022 vs. 2021,” Frank said. “The old adage of content is king still rings true, and with more product in the marketplace, consumers will ultimately have more choices and more opportunities in the home entertainment space.”

Jed Grossman, EVP and GM of worldwide sales and distribution at Lionsgate, adds, “We expect all business segments — transactional digital, packaged media, SVOD and AVOD/FAST — to grow year-over-year driven by five key factors:

    • A more robust theatrical release schedule, inclusive of major tentpoles and franchises like ‘Jurassic World,’ ‘Top Gun’ and ‘Black Panther’ that were delayed during the pandemic. Lionsgate has a strong slate that includes Unbearable Weight of Massive Talent, starring Nicolas Cage; Are You There God? It’s Me Margaret; and White Bird, among others; 
    • A more viable theatrical marketplace, with theater-going comfort increasing as vaccine/booster shot rates increase and tentpoles drive attendance;
    • The continued unprecedented demand for new release and library product from SVOD and AVOD/FAST platforms. Lionsgate has achieved record library revenue over the past year;
    • The ability to capitalize on home entertainment consumer behavior, consumer content thirst and technology enhancements — across all offer types — as accelerated by the pandemic lockdowns of 2020 and early 2021; and 
    • Continued collaboration with our theatrical exhibition partners to release films with dynamic windows to meet demand across all platforms.”
Jed Grossman

For independent film distributors, don’t expect much variance in 2022 from established policies of continuing to take aim at the collector and niche markets, particularly on the physical media side.

“For disc sales, MVD and our label partners are focusing on collectible content in deluxe packaging,” says Ed Seaman, COO of MVD Entertainment Group. “We anticipate a similar trajectory for disc sales, which have steadily grown over the last several years. The pandemic certainly gave them a boost, but the resilience and resurgence of disc sales may have more to do with the frustrating customer experience our industry has created in the OTT space. Finding what you want is now very challenging. How many streaming services do you need to subscribe to only to not find the film you want to watch, when you want to watch it? You can more easily find what you want transactionally, but it is still a search. Why not just pay a bit more and own the deluxe-edition disc?”

On the digital front, Seaman says “AVOD/FAST will continue to grow dramatically as consumers clearly embrace and enjoy that model. TVOD is tricky; considering Amazon’s tight curation of non-fiction, we expect some other platforms to step up and become more dominant in that space. There is a real opportunity for platforms focusing on non-fiction to deliver to fans what they want when they want it.”

At MVD, Seaman notes, “we’ve just added Zach Fischel to our leadership team; Zach is a veteran in the entertainment industry and is leading our label management team and marketing department. We’ve additionally moved longtime MVD staffer Chris Callahan to lead our digital sales and operations team. Chris has been with MVD since 1999 and has served in sales management, label management and international licensing. Both of these leaders are committed to improving their areas of responsibility; they have great ideas particularly in digital marketing, an area of overlapped responsibility. We are really excited about 2022!”

So is Mark Fisher, president and CEO of OTT.X, a streaming industry trade group.

“2022 will be a year that portends the future of our industries — a future that, enabled by OTT distribution, is more egalitarian, more global and more diverse,” Fisher says. “While Hollywood continues to make great movies and TV shows, smaller distributors and independent producers from all over the world are making a lot of great content, too — enabling the consumer to be less reliant and dependent on content from the big studios and on domestic-produced content. And, while the big ‘Pluses’ and ‘Maxes’ continue to grow, consumers are finding plenty of additional content on indie and niche channels, both FAST and on demand.”

Fandango’s Cameron Douglas: TVOD ‘Quietly Had a Moment in 2020’

With the focus on the growth of SVOD and AVOD streaming services during the pandemic, transactional VOD has been somewhat overlooked, said Cameron Douglas, VP of home entertainment at Fandango.

“All the press is about SVOD and AVOD services, ad-supported or subscription, but transactional sort of quietly had a moment in 2020,” he said during a virtual panel for the American Film Market.

Premium VOD has certainly been a focus of services such as FandangoNow and sister TVOD outlet Vudu (both are owned by Fandango) as theaters have closed and new releases have rushed to digital, but catalog has been rising to the occasion as well.

“Our No. 1 library title today is Friday the 13th, because it’s Friday the 13th,” Douglas noted. “Sometimes the audiences find their own catalog.”

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Still, the Fandango team has been making an effort to bring catalog to the fore.

“We’ve had to work harder at curation of catalog because there’s fewer new releases that are those tentpoles that we can sort of talk about and then sort of drive the traffic to other content or discovery of other content,” he said. “We just launched this summer a new, what we call ‘staff pick,’ but it’s actually a joint creation between the Fandango team and the Rotten Tomatoes team where we’ve come up with themes and genres where we’ve been able to sort of bring different portions of the 150,000-title library up to the surface in different ways and fresh and interesting ways. … Right now, we have one that’s spy thrillers, and that’s probably because, as I think about it, there wasn’t a Bond movie to watch, and there’s probably an opportunity to catch up on those and certainly it had interesting and unfortunate timing having to do with [the death of James Bond star] Sean Connery.”

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One big advantage of TVOD services is that titles aren’t subject to a licensing window, like they are on SVOD and AVOD services.

“It’s the best Blockbuster story in the world because it has very deep content, from all eras, all genres,” he said. “I said a couple weeks ago in an article that it’s the canon of modern filmmaking essentially.”

Consumers also have the choice to rent or buy a title on TVOD services.

“FandangoNow and Vudu actually complement each other,” Douglas said. “Fandango is stronger in VOD, in rental, so that’s your Blockbuster activity, you’re renting a movie for 48 hours. Vudu has actually fostered more of a collector.”

Douglas admitted that he thought electronic sellthrough, which has an early window before disc, had seemed to foster “unintentional ownership” in the digital realm, as consumers bought titles merely because that was the only way to watch them.

“I think Vudu has proven me wrong on that,” he said. “Really there is a genuine collector. We’re seeing consumers that have amassed huge libraries, and it’s obvious that these are not things that were just in that two-week window. These are deep catalog. This is someone that’s collected every version of ‘Lord of the Rings,’ extended version, regular version, and they’re proud to have that in their library. It’s like the old ‘Cribs’ MTV Show where people always showed off their DVD collection … and I think now people are proud to show off their digital collection.”

Still, Douglas noted that theatrical exhibition is an essential part of the business.

“Our relationship with the exhibitors is very important to us, so we want people back in theaters as soon as safely possible, when each individual is comfortable with that,” he said.

OTT.X Summit Speakers Talk FAST (Free, Ad-Supported Television)

Free, ad-supported television dominated the discussion during the OTT.X summit’s opening-day keynote panel.

Known by the acronym FAST, the market certainly is in growth mode. Media heavyweights ViacomCBS and Comcast Corp. have acquired Pluto TV and Xumo, respectively, while Comcast’s much-ballyhooed Peacock streaming service also will have a free, ad-supported component.

And as Media Play News reported earlier this week, new data from eMarketer suggests AVOD revenue will grow more than 25% this year compared with 2019.

The AVOD market — spearheaded by The Roku Channel, Disney-owned Hulu, Peacock, Redbox TV, Amazon’s IMDb TV, Pluto TV and Fox Corp.’s Tubi — saw ad revenue skyrocket 31% to $849 million in the most-recent quarter, according to MoffettNathanson Research.

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“It’s something I’m really excited about — this is the thing that’s really hot,” moderator David Bloom, a tech journalist and consultant, said during the panel on Sept. 1. (The OTT.X summit continues through Sept. 3; click here to register.)

Anthony Layser, VP of content partnerships at Xumo, agreed.

“Things have changed so quickly over the last couple of years,” he said. “I joined Xumo in 2017 and I think at first there were some things that felt a little bit like a gimmick — you’re starting to string together types of content into a linear experience.

“And then I really got a sense, after a few months in, that what’s old is new again. People don’t necessarily want to spend all night searching through box art; they may be interested in a very specific series they are comfortable with — maybe it’s nostalgia, maybe it’s lifestyle.”

The FAST market, he said, “is always changing and it’s exciting to come to work every day and look at data and say, ‘Wow, look at how this piece of content we licensed years ago is taking off.’”

Erick Opeka, president of Cinedigm Networks, said his company over the past 18 months has sought to build “a nice portfolio of premium FAST and AVOD services to complement our four niche subscription services we still operate.”

“We got out of the real heavy, direct-to-consumer side,” he said, “and now focus on what I call the classic model of third-party distribution. You get a lot of bang for your buck — you don’t have to spend a lot of money on marketing, and you can focus all your energy on content spend and everyone else handles all the rest. So it’s a good model. Where we really thought the growth for us was going to come was in the ad-supported space.”

Advertising spending, he said, is “completely disconnected from the consumption right now. If you look at the data coming out of Samsung, where 55% of all consumption on smart TVs is not with traditional environments — the trend is not going to reverse; it’s not going to suddenly swing back the other way, especially given that 265 million sets are sold annually that have linear and VOD baked in, not to mention hundreds of thousands of apps.”

With FAST, Opeka said, “consumers love the choice, they love getting tons of entertainment for free that they don’t have to pay for. A couple of years ago, Pluto really educated all of us. … People mistake linear being dead for pre-programmed, tuned-in being dead. But I think there’s a very different piece here. Leanback is not dead. There’s a real specific use case for a big chunk of the week where you don’t have a lot of time and don’t want to spend 30 minutes digging through thousands of titles or hoping the algorithm finds you. You just want something on while you’re having leftovers. What we’re really talking about is hand-curated, passive, feed-my-eyes, against active, algorithm-driven recommendations. There’s a place in the world for both.”

Tedd Cittadine, VP of content distribution at Roku, said, “There’s no secret we’re really excited and optimistic about the AVOD business in general. We started just over three years ago with the Roku Channel, and the reason we launched it is because our consumers were disproportionately searching for free content. We knew there was pent-up demand for it. And we’ve seen significant growth — it’s been growing faster than the platform as a whole.”

He noted that the “AVOD landscape has changed significantly” over the past few years. “It’s gone from many startup independents to Roku, CBS, Fox, Amazon, YouTube, Comcast”

He noted that as the business becomes increasingly competitive, there are “three key things that drive success.” One is access to a “huge audience.” “It’s incredibly expensive to acquire consumers,” he said. “If you don’t have that huge installed base you can market to and deliver your content to, it can be very challenging to build that audience.” Second is having a “one-to-one, proprietary relationship with data for consumers, and having access to that data to make your advertising more effective.” And the third, he said, is having a “large and successful, well-funded direct ad sales organization to take advantage of monetization opportunities.”

Also speaking on the panel was Andrea Clarke-Hall, VP of business development at Tubi, acquired by Fox in April. “If you take COVID and add an acquisition, it makes for interesting times,” she said. “But it has been awesome. It’s still very early days, but it seems to be a really great partnership. Fox has given Tubi tremendous autonomy, and I think what we’ve seen is continued announcements every week about leveraging Fox ownership to bring better and better content to Tubi.”

Cameron Douglas, VP of home entertainment for Fandango, gave a nod to the transactional side of the business, noting that stay-at-home orders, and the movie theater shutdown, during the coronavirus pandemic has given the business a boost.

“You feel like the last few months have brought transactional back,” he said. “People have discovered there’s new content, movies you might not have ever seen — like The Tax Collector, which has been No. 1 on our service for the last couple of weeks.”

Farewell EMA, Hello OTT.X

After more than three decades as one of the home entertainment industry’s key trade associations, the Entertainment Merchants Association (EMA) is broadening its focus and rebranding to become the OTT.X (the Over The Top Exchange).

According to CEO and president Mark Fisher, the new name reflects the organization’s aim to more broadly support the business of bringing entertainment to the consumer through all OTT means – including transactional video-on-demand (TVOD); subscription VOD, or streaming; and ad-supported streaming (AVOD).

Maintaining that the organization will support digital retailers, channels, networks, platforms, and MVPDs, Fisher said the vision of OTT.X is “a vibrant ecosystem of companies continually advancing the consumer experience and business of delivering audio-visual entertainment through OTT technologies,” while its updated mission is “to connect and nurture the OTT ecosystem enabling innovation, collaboration, and competition.”

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He said the association will  continue to focus on the business aspects of the industry, by facilitating business exchange and community, sharing industry insights and research, organizing and managing industry interest groups such as digital supply chain and retailing best practices, and managing a leadership development foundation.

The new OTT.X logo

The group was founded in 1984 as the Video Software Dealers Association (VSDA), representing the proliferating independent video rental stores that had birthed the home entertainment industry several years earlier.

As the business shifted to regional and then national chains like Blockbuster Video, Movie Gallery and Hollywood Entertainment, the VSDA intensified its lobbying and supply chain efforts and tweaked its annual summer convention, generally held in Las Vegas, to focus more on meetings and less on elaborate booths and exhibits on the show floor.

With the arrival of DVD and the shift in the market away from rental and toward sellthrough, the VSDA scaled down its show even more and in 2006 merged with the Interactive Entertainment Merchants Association (IEMA) to become the EMA.

The last big summer trade show was held in Las Vegas in 2007; the association subsequently focused on smaller conferences and seminars and from 2012 until last year presented the annual Los Angeles Entertainment Summit for key retailers and content suppliers.

The association’s new direction — and name — are the result of its successful OTT_X Market and Conference last July and its OTT_X @ Pipeline in September, Fisher said.

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“After more than three decades, we continue to reinvent the definition of the industry that we serve as well as our model to serve and support it,” Fisher said. “I’m proud that our team — our board and staff, working together — drafted this transformational plan, positioning OTT.X to grow in both the size of its membership and the quantity and quality of its programs and services.”

“There are so many new and emerging channels and networks looking to collaborate with their peers in building a more effective ecosystem,” said Cameron Douglas, OTT.X chair and head of home entertainment at FandangoNow, one of the industry’s leading digital retailers. “I look forward to working more broadly with digital retailers, MVPDs, digital channels and networks, distribution platforms, consumer electronics manufacturers, and all the companies creating and distributing content to these channels, as well as technology-enabling services supporting our businesses.”

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Earlier in the year, Fisher told Media Play News that the association in 2020 will “formally, fully embrace the broad spectrum of OTT delivery, including SVOD and AVOD, while continuing to support TVOD. We plan to contribute significantly to supporting the ecosystem surrounding OTT including platforms, channels, content providers and service providers by expanding many of our already successful programs as well as launching new ones.

“This includes connecting companies for efficient business negotiations in events like our popular OTT.X business exchange, gathering and sharing valuable business insights and industry research in our conference sessions and facilitating the development, evangelization and education of industry best practices such as the digital supply chain work we’ve been doing over the last decade.”

 

Home Entertainment Execs Predict More Turbulence as the ‘Roaring’ ‘20s Get Underway

Coming off a year of momentous change, home entertainment executives expect more turbulence to hit their business in 2020.

Streaming has clearly become the dominant force, with two more high-profile subscription streaming services scheduled to launch in 2020. Comcast/NBC Universal in April will bow Peacock, with more than 15,000 hours of content and a free, ad-supported service as well. A month later, WarnerMedia will debut HBO Max, with a large library of titles from across the media titan’s family — including a curated list of classic movies.

And then there’s Quibi, a mobile-centric, short-form video platform launching in April, the brainchild of ex-Disney and DreamWorks chief Jeffrey Katzenberg.

But home entertainment executives, whose proverbial bread-and-butter has always been the transactional model — in which consumers pay a set fee to either buy or rent a movie, TV series or other filmed content, either digitally or on disc — insist there’s enough of an audience for both aspects of the home entertainment (or at-home, or direct-to-consumer) business.

“With an abundance of exceptional content combined with a plethora of platforms, we can expect a ‘roaring’ start to the ’20s as consumers are met with a mass of entertainment options,” says Bob Buchi, president of Paramount Home Entertainment. “It is now the challenge of the industry to focus on marketing and distribution to hone the messaging and delivery to meet the varied needs of consumers across linear, on-demand, subscription and transactional.

“While SVOD has captured the attention of consumers and created an ‘always on’ expectation, the transactional business continues to offer very unique and important consumer propositions: the first post-theatrical home viewing opportunity, the greatest breadth of selection, the highest quality viewing options, and custom bonus content to extend the entertainment experience. The data continues to show that SVOD and transactional can co-exist and thrive. More than half of viewers are involved in both activities, and despite the availability of catalog titles on SVOD platforms, we at Paramount saw record sales numbers for our catalog in 2019.”

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Jason Spivak, EVP of distribution at Sony Pictures Home Entertainment, is similarly optimistic. “As the business evolves consumers are becoming increasingly aware and comfortable with the ways that various distribution models fit together,” he says. “While SVOD delivers great value for many use occasions and types of content, the benefits of transactional models — recency, collectability and image quality — also continue to be prominent, especially in regard to new release theatrical content, and premier catalog titles.”

“Obviously we have been paying very close attention to growth and adoption of streaming services, and we are constantly evaluating their impact on our physical and digital business,” adds Jim Wuthrich, president of Warner Bros. Home Entertainment & Games. “With Warner Media’s HBO Max coming in 2020 the industry will continue to grow.  And as the business grows, so does access to an ever-increasing new consumer base who are familiarizing themselves with digital transactions and streaming, so it opens doors for us to bring in new audiences for our products and content.”

Ron Schwartz, president of worldwide home entertainment for Lionsgate, says “the transactional home entertainment space remains a very dynamic and robust business for our many types of content.” He touts the success on both digital and physical platforms of John Wick: Chapter 3 and Angel Has Fallen, calling those two films “great examples of the type of content that home entertainment consumers want to own. Overall, multiple steaming platforms and transactional, physical and digital will all continue to coexist as the marketplace continues to evolve.”

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Digital retailers agree. “In 2020, we think transactional and subscription will both continue to grow because they complement one another,” says Cameron Douglas, head of FandangoNow. “Nowadays, digital entertainment is a mainstream business. Every TV is connected and OTT services have become the norm for audiences looking for content at home. The growth bodes well for the future of our industry.”

Even at Disney, where much of the focus is on the much-hyped Disney+ service, there’s room for transactional, according to David Kite, SVP of marketing for Disney Media Distribution.

“With this year’s acquisition of 20th Century Fox, we remain committed to both digital and physical ownership,” Kite says. “We successfully integrated the Fox team into the expansive Disney home entertainment organization and have implemented a unified strategy that includes a more synergistic approach across key lines of business. We’re looking forward to another exciting year across both physical and digital platforms with a wide-range slate of home entertainment releases.”

In the first quarter of 2020, Kite says, “We will be releasing two very promising titles — the critically acclaimed awards contenders Jojo Rabbit and Ford v Ferrari.  We’re also excited about the rollouts of Frozen IIStar Wars: The Rise of Skywalker, Marvel Studios’ Black Widow, Disney-Pixar’s Onward and the live-action Mulan as our customers continue to build their libraries.”

While disc sales will likely continue to decline in 2020, no one’s giving up on DVD, Blu-ray Disc or, in particular, 4K Ultra HD.

“The 4K UHD physical market will continue to experience growth throughout 2020,” says Eddie Cunningham, president of Universal Pictures Home Entertainment. “We are encouraged by industry forecasts, which anticipate the sales of that format in North America alone will deliver 25% of Blu-ray Disc dollars in 2020.”

“We will continue to release the majority of our new release titles in the highest possible definition and also mine our vast catalog library for worthy and deserving films to be remastered, as we did this year with The Wizard of Oz,” adds Wuthrich. “The desire for classic titles in the ultimate high-definition format is definitely a factor in the continued momentum of 4K UHD.”

Spivak agrees. “As consumer viewing habits evolve, the disc remains a prominent part of the home entertainment market, particularly given the steady growth for 4K Ultra HD,” he says. “With households nationwide regularly upgrading their TVs to 4K UHD there’s every indication that 4K UHD will evolve beyond a niche audience of format enthusiasts. We will continue to put out most of our new releases and select catalog in UHD, while working with retailers to expand placement and experimenting with features that make the product most attractive to consumers.”

Disney’s Kite is similarly optimistic for the disc business. “Physical ownership remains a robust line of business for us, especially among the collectible consumer,” he says. “There continues to be a healthy appetite for the physical format, particularly with premium, and we already have substantial plans in place for 2020.”

Universal’s Cunningham stresses the importance of retail partnerships in maximizing the transactional model’s potential.

“Given that physical and digital transactional consumption rates are remaining steady year over year and that disc purchases are making up more than half of that consumption, there’s no question that movie buyers continue to be vitally important to retail,” he says. “At no other time in our industry has it been more critical to ensure that we work together to retain the loyalty of movie consumers, creating urgency for our products and delivering the utmost value, quality, accessibility and convenience possible.

“It is important for us to continue supporting our retail partners with creative thought leadership and close collaboration to ensure that we collectively continue to capture shopper attention and deliver key, compelling reasons to transact.”

Sony Pictures’ Spivak agrees. “More than ever we must embrace the fact that our retail partnerships are multi-faceted and cross distribution models — from transactional to SVOD and AVOD,” he says. “Ultimately, our mutual objective is maximizing the consumer value proposition and providing the best potential viewer experience.”

Oh, What a Year — With Transformational Changes, Home Entertainment in 2019 Got Smaller — and Bigger

The phrase “transformational change” has been used so much it’s become a cliché — and yet there really is no better way to describe what happened in not just home entertainment, but also the entertainment industry overall, in 2019.

The completion in March of the Walt Disney Co.’s purchase of 20th Century Fox saw the number of major studios drop to five from six. Some of the home entertainment sector’s most familiar faces were suddenly gone, including Mike Dunn, the longtime leader of Fox’s home entertainment unit, and Danny Kaye, the visionary behind Fox Innovation Labs. Later, in the summer, Janice Marinelli, Disney’s home entertainment chief, also exited in a surprise move, given that she had opened an office on the Fox studio lot and was reportedly screening staffers.

In November, two new streaming giants emerged to take on longtime leader Netflix, Apple TV+ and, most significantly, Disney+.

Meanwhile, a new flavor of streaming gathered momentum: free to consumers, paid for by advertisers. Among the heavyweights jumping into what’s known as “AVOD” are ViacomCBS, with its Pluto TV acquisition, and Comcast Corp., which in December was reported to be in advanced talks to acquire Xumo TV, which boasts more than 140 digital channels of programming across 12 genres, including sports, news, kids and family entertainment.

The overall impact of all these developments on home entertainment: It got smaller — and bigger.

Smaller, because the traditional transactional business model that has defined home entertainment since its birth more than 40 years ago has increasingly come under fire, with subscription streaming, in particular, gobbling up more and more consumer attention — and dollars — that previously would have gone toward buying or renting movies, either on disc or through digital retailers.

But also bigger, because streaming, in its various incarnations, is now widely accepted as being part of home entertainment — which is now broadly defined as people watching what they want, on demand. There’s even a new name for all of this — direct-to-consumer — which was first adopted by Disney and is now used interchangeably with “home entertainment.”

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Bob Buchi, president of Paramount Home Entertainment, says 2019 “was the year of transition.”

“From media mergers and changing consumer viewing habits to the explosion of streaming services, the landscape has shifted dramatically,” he says.

The Nov. 1 launch of Apple TV+ marked the tech giant’s entry into the content business, with nine original series. One of them, “The Morning Show,” picked up several Golden Globe nominations from the Hollywood Foreign Press Association (HFPA), a first for a new streaming service.

Less than two weeks later, Disney launched its much-ballyhooed Disney+, with a full menu of in-demand movies and series — including the “Star Wars” spinoff “The Mandalorian.” Disney said more than 10 million people signed up for the service in the first 24 hours. By the end of November, the service had 24 million subscribers, according to estimates from Wall Street firm Cowen & Co. (Netflix as of October had more than 60 million domestic subs.)

“It’s an exciting time and we believe we have a unique and significant role to play,” Ricky Strauss, president of content and marketing for Disney+, told Media Play News on the eve of the service’s launch. “Disney+ will compete based on the unparalleled strength of our brands, the quality of our intellectual property, and expertise in high-quality video streaming.”

And yet industry insiders insist that despite streaming’s growth, there’s room for transactional — largely because new theatrical films, particularly the blockbusters, aren’t available on SVOD services. This distinction has prompted FandangoNow, one of the big digital retailers, to boldly proclaim on its home page, “New releases not on Netflix, Amazon Prime or Hulu subscriptions.”

“Because we’re the first point of entry for fans to see movies in theaters, and first at home, we’ve seen a significant growth among consumers who are excited to own movies as soon as they’re available digitally,” says Cameron Douglas, head of FandangoNow. “Fans looking for high-quality content right out of theaters, including 4K HDR movies, don’t have to wait until they arrive later on subscription services, and innovative deals like rental binge bundles and the availability on new platforms keep them coming back to transactional digital services like our own.”

“New movie releases continue to be sought out by consumers during the first window in the home amidst the frenzied buzz around new streaming services,” adds Michael Bonner, EVP of digital distribution for Universal Pictures Home Entertainment. “While there’s no denying the landscape is becoming more competitive, this business has successfully co-existed with abundant availability of non-transactional content for a long time and we expect it to continue to do so.”

“There is space — and demand — for both transactional content as well as streaming — just as there is consumer interest in both digital and physical,” says Amy Jo Smith, president and CEO of trade association DEG: The Digital Entertainment Group.

Beyond new releases, streamers have a limited selection of older films and TV shows, particularly with their increased focus on original content.

“For many consumers, their streaming options are good enough,” says Mark Fisher, president and CEO of home entertainment trade association the Entertainment Merchants Association (EMA). “But just like the days when the first video rental stores opened and made it easy for the consumer to watch anything they wanted to watch when they wanted to watch it, online VOD retailers offer that same opportunity to the consumer. I know that every time I see a montage of old movie clips, I’m driven to watch titles that aren’t new releases — and these are titles not readily (or easily) found on the streaming services.”

Sales of digital movies, in particular, were a bright spot, with consumer spending up nearly 7% in the first nine months of 2019, according to trade association DEG: The Digital Entertainment Group.

“We’ve continued to see growth in EST (electronic sellthrough) — both in our new releases and in our catalog,” says Jason Spivak, EVP of distribution, for Sony Pictures Home Entertainment. “Certainly the enhanced consumer experience enabled by Movies Anywhere is part of that, as is increasing consumer connectivity in their homes. EST continues to gain prominence in our marketing planning, release data scheduling, and retailer partnerships.”

Ron Schwartz, president of Lionsgate Home Entertainment, says Lionsgate EST revenue grew 30% this year, “four to five times faster than the overall industry. With increased collaboration between studios and retailers, and more offerings such as dynamic bundling, customers are starting to build their lockers up to 10-plus titles. Recent data shows that once a customer gets to between 10 and 12 titles in their locker, their EST purchasing behavior doubles.”

In addition to selling movies, digital retailers also offer them for a la carte streaming, the digital equivalent of a physical movie rental. Redbox remains the only retailer to offer both digital and physical rentals, the former through an e-commerce site and the latter, through a network of more than 40,000 kiosks situated outside (or inside) large retailers like Walmart, convenience and drug stores, and other retailers.

“Redbox owns the transactional space with more transactions across physical and digital formats — for rental and purchase — than any other transactional provider,” says Redbox CEO Galen Smith.

In 2019, he said, Redbox expanded its offering of 4K Ultra HD discs into new markets, and stepped up promotions as well, with its Back to the Movies campaign and a joint Dinner & A Movie offering with meal delivery service DoorDash.

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In addition, Redbox Entertainment, a new content acquisition and production division, has further transformed Redbox into a multi-channel content provider and programmer. Launched in October, the new division is headed by Marc Danon, who spent eights at Lionsgate, most recently as SVP of acquisitions and business development.

Disc sales in 2019 continued to decline in the low double digits, with DEG reporting that in the first nine months of the year, combined 4K Ultra HD, Blu-ray Disc, and DVD revenues were down 18.5% to an estimated $2.3 billion — exactly half what they amounted to five years ago, in 2014.

But studios continued to support the disc. And while a trend among smaller titles is to release them only on DVD and digital, bypassing Blu-ray Disc, major new releases are still getting significant marketing campaigns behind them, particularly for the 4K Ultra HD editions. The UHD disc also made headlines last August when the UHD Alliance, along with leaders in consumer electronics, the Hollywood studios and members of the filmmaking community, announced collaboration on a new viewing mode for watching movies called “Filmmaker Mode,” designed to reproduce the content in the way the creator intended. Filmmaker Mode, bowing next year, will allow viewers to enjoy a more cinematic experience on their UHD TVs when watching movies by disabling all post-processing (e.g. motion smoothing, etc.) so the movie or television show is displayed as it was intended by the filmmaker, preserving the correct aspect ratios, colors and frame rates.

“For the time being, 4K UHD is still the gold standard for at-home content,” says Jim Wuthrich, president of Warner Bros. Home Entertainment & Games. “With hardware costs dropping and television functionality such as Filmmaker Mode being made available next year, there is still a great value proposition in owning content in 4K UHD, both physically and digitally, as is still represents the best home-viewing experience.”

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“As evidenced by the exceptional growth of 4K UHD to date, it is clear that there is a sizable appetite for premium high-definition products, and that format plays a meaningful role in boosting retail traffic,” says Eddie Cunningham, president of Universal Pictures Home Entertainment.

Retail partnerships are key, Cunningham adds. “Given that physical and digital transactional consumption rates are remaining steady year over year and that disc purchases are making up more than half of that consumption, there’s no question that movie buyers continue to be vitally important to retail,” he says. “At no other time in our industry has it been more critical to ensure that we work together to retain the loyalty of movie consumers, creating urgency for our products and delivering the utmost value, quality, accessibility and convenience possible.”

 

EMA Elects Officers, Appoints Board Members

Cameron Douglas, VP of home entertainment, Fandango, has been re-elected chairman of the home entertainment trade group the Entertainment Merchants Association (EMA). Douglas will be serving his second term as chairman.

Joining Douglas as officers are vice chair Suyin Lim, senior director, content acquisitions and partnerships, PlayStation Video; secretary Pedro Guiterrez Jr., director, digital stores movies and TV business and category management, Microsoft Corp.; and treasurer Michele Edelman, head of growth, Premiere Digital Services.

Eric Opeka

Bill Kotzman, Google/YouTube’s partner product manager, TV and Film; Erick Opeka, president, Cinedigm Digital Networks; and Jason Peterson, CEO of GoDigital Medial Group, will also serve on the association’s executive committee as at-large members.

Amazon returns to the EMA’s board, now represented by senior product manager Jude Fitzmorris.

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Other returning board members are Amit Balan, head of marketing at Vudu, and Marty Graham, SVP at ComScore.

Three members newly appointed board members are Opeka, Edelman and Elissa Brown, VP of finance and operations at Movies Anywhere.

“The companies on EMA’s board of director reflect the variety of delivery mechanisms and business models in our vibrant industry,” said Mark Fisher, EMA president and CEO. “Each director brings an important perspective, and their wealth of experience will benefit the membership as EMA continues to be the forum for the home entertainment industry.”

The EMA is a not-for-profit international trade association. Members include digital retailers, MVPDs, AVOD and SVOD networks and channels, platforms, companies creating and/or distributing content for these channels of distribution, and companies providing services or technology for the use of others in this community. EMA was established in April 2006 through the merger of the Video Software Dealers Association (VSDA) and the Interactive Entertainment Merchants Association (IEMA).

‘Rocketman’ Returns to Dodger Stadium

Paramount Home Entertainment on Aug. 25 hosted a Rocketman-themed night at Dodger Stadium to commemorate Elton John’s historic concert there in 1975 — and to promote the film’s Aug. 27 release on Blu-ray disc and DVD. Bernie Taupin, Elton John’s long-time lyricist, and Jamie Bell, who portrays Taupin the film, were there to celebrate.  Rocketman has been available for digital purchase since Aug. 6. The film grossed nearly $100 million at the domestic box office, making it the second successful rock ‘n’ roll movie (after Bohemian Rhapsody) over the past nine months to appear in theaters and then become available for home viewing.

Media Play News Fast Forward 2019 Awards Luncheon

Media Play News honored four digital retailers with the publication’s second annual Fast Forward Awards for driving the home entertainment industry forward. This year’s awards included a luncheon and ceremony, held April 4 at the Universal Hilton in Universal City, Calif., and hosted by the Entertainment Merchants Association. Awards went to Cameron Douglas of FandangoNow, Jonathan Zepp of Google Play Movies & TV, and Galen Smith of Redbox, and the team at Apple iTunes. EMA used the event to launch its EMA Leadership Development Foundation, aimed at supporting professional training and development within the home entertainment industry, and particularly within the EMA membership.