Longtime studio executive Jeff Brown, most recently EVP of global kids, young adults and classics for Warner Bros. Discovery, has left the studio after 26 years.
“It has truly been a great ride,” Brown told Media Play News. “I sincerely mean that. I feel truly fortunate to have been able to participate, and I look forward to the next challenge.”
Prior to his most recent role managing global animation movie planning and revenue for TV series and movies for streaming or video, Brown was an instrumental member of the Warner Bros. Home Entertainment team under Ron Sanders and, most recently, Jim Wuthrich.
He managed all digital and physical WarnerMedia television content, including WBTV, HBO, Turner and WB Animation, for both new releases and catalog titles on a global basis. Brown further grew WB’s success with an expansion into made-for-video content, particularly with the DC Universe line. Brown also was one of Warner’s key ambassadors to San Diego Comic-Con, where the studio routinely presented panels focused on animated DC releases.
Early in his career, Brown was part of the Warner Bros. team that led the DVD/Blu-ray revolution. He was later based in London as Warner Bros.’ head of EMEA, where he helped engineer the company’s adaptation of a global franchise marketing planning process. He then moved back to the United States and assumed responsibility of WBHE’s television business unit.
Before joining WBHE in 1996, Brown worked in marketing management for General Mills and Nestle, as well as operating as GM/owner of two successful entrepreneurial ventures.
One positive trend that has emerged during the pandemic, home entertainment studio executives say, is that consumers seem to be gaining a better understanding of the difference between transactional and subscription streaming and are realizing that not everything they might want to see is available on Netflix or the other big SVOD services.
“Because consumers are spending so much watching digital video at home, they are acutely aware of which titles are available on the various platforms,” says Jason Spivak, EVP of U.S. distribution at Sony Pictures Television Distribution.
“It has become clear that consumers sheltering at home not only have become increasingly engaged in our catalog offerings to keep entertained, but also have progressively grown to become more savvy in navigating the spectrum of formats,” says Hilary Hoffman, EVP of global marketing, Universal Pictures Home Entertainment. “As such, we have continued to invest and reward consumers to stay engaged in the category and have been working in lockstep with our digital and physical retail partners to ensure that we remain hyper-focused on delivering the broadest access and best possible in-home experience.”
“Consumers have become much more receptive to different price points,” adds Sony Pictures Home Entertainment’s senior EVP of worldwide marketing Lexine Wong. “They realize not everything’s on Netflix, and it’s worth it to them to pay a transactional amount for something they really want to watch. They really have embraced all the ways to consume digital video.”
That includes the physical disc. “We are encouraged by the resilience,” Spivak says. “When you think of the structural impediments, stores being closed, online ordering taking longer to fulfill — consumers who love the physical disc are persevering and that business is holding up quite well.”
Studios were fortunate that two of the biggest retail sellers of DVDs and Blu-ray Discs, Walmart and Target, were able to remain open throughout the pandemic because they also sell groceries and thus were deemed “essential” businesses. Alanna Powers, SVP of brand marketing, catalog, at Paramount Home Entertainment, says studio marketers have already met with Walmart to discuss fourth-quarter plans, with a focus on catalog.
“We went through a whole planning session with the Walmart team,” Powers says.
But the biggest lift to DVD and Blu-ray Disc sales, studio marketers say, comes from e-commerce sellers such as Amazon.
“We’ve seen quite a boom in e-commerce,” Powers says. “Initially we were unsure about the supply chain and how retail would react, but we kept all our new-to-Blu-ray titles on the calendar and saw a very positive response so we’ve continued to fill the slate with additional titles.”
Indeed, in addition to monthly waves of “Paramount Presents” releases, Paramount recently has come out with a 25th anniversary edition of the Alicia Silverstone comedy Clueless and 40th anniversary editions of horror classic Friday the 13th and John Travolta’s Urban Cowboy. Clueless and Friday the 13th also are available in limited edition steelbooks.
“We’re really leaning more into the collector’s market,” Powers says. “That’s where e-commerce really shines.”
It’s not just movies, either. Warner Bros. Home Entertainment enjoyed a banner spring with TV product, says Jeff Brown, EVP and GM, Television. “The second quarter was a panacea for transactional television content, physical as well as digital,” Brown says. “Our business grew over 40%, year on year. And if you exclude ‘Game of Thrones,’ which had an extraordinary performance last year with the final season broadcast and transactional release, our business nearly doubled. This really shows peoples’ appetite for television content, and while obviously stay-at-home behavior contributed to this, there were several other opportunities we were able to capitalize on.”
One was the fact that Warner now distributes TV content from HBO and Turner digitally as well as physically.
Another is a strong slate of product, released just in time for viewers to enjoy while encouraged by state and local governments to stay in their homes. “Our top drivers included ‘Rick and Morty,’ ‘Friends’ and ‘The Big Bang Theory,’ as well as the animated original movie titles Justice League Dark: Apokolips War, which was probably our best-performing DC animated movie since Batman: The Killing Joke and Mortal Kombat Legends: Scorpion’s Revenge,” Brown says.
The third factor behind Warner’s strong TV quarter is a series of “Entertaining the World” promotions, Brown says, with a menu of promotional actions for digital retailers such as Amazon Prime Video, iTunes, Google Play, Vudu and FandangoNow.
“We promoted shows such as ‘Fresh Prince of Bel-Air,’ ‘Two and a Half Men,’ ‘The Sopranos,’ ‘The Wire,’ and Hanna-Barbera and DC animated classics,” Brown says. “We were able to look at the total Warner-HBO-Turner TV and animation library and come up with compelling retail programs, and we coordinated this on a semi-monthly ‘wave’ basis to provide an abundance of promoted content to retailers in a timely manner.”
Editor’s Note: This is part three in a four-part series, “Restocking the Shelves: With No Theatrical Releases, Studio Home Entertainment Marketers are Getting Creative.” The complete story will be available in the July print and digital editions of ‘Media Play News.’
“Friends” is giving the transactional side of the home entertainment business a very happy new year.
The landmark sitcom that helped birth the TV DVD category nearly two decades ago is once again a top DVD and Blu-ray Disc seller — and this time the sales boost is also being felt in digital sales, commonly known in the industry as “electronic sellthrough.”
The catalyst: the disappearance of “Friends” from its longtime exclusive on-demand home, the Netflix subscription streaming service. With streaming wars accelerating, AT&T, which owns the Warner Bros. studio that produced “Friends,” made plans for the show to come off Netflix once the license expired Dec. 31, 2019, and reappear on its own streaming service, HBO Max, which is launching in May 2020.
In the meantime, “Friends” is only available for on-demand viewing on disc and for digital purchase or rental — and that’s led to a significant spike in sales.
Jeff Brown, EVP and GM of Television and Animation for Warner Bros.’ home entertainment division, said sales began to rise shortly after the announcement in July 2019 that “Friends” would be leaving Netflix at the end of the year.
Through the end of 2019, he said, sales of the season and complete series sets more than tripled. And since the official departure of “Friends” from Netflix on Jan. 1, Brown said, sales have spiked even higher, on both physical and digital formats.
“Not bad for a 20-year-old TV show,” Brown said. “The discs really started selling well in the summer, when we announced the show was coming off Netflix and we launched a 25th anniversary promotion — but the digital really took off after the first of the year, once the show was off Netflix.”
The top seller is the complete series set, which Warner re-released on Blu-ray Disc and DVD in September. The package contains 10 seasons’ worth of shows, or a total of 236 episodes. On Amazon, the complete series set retails for $69.99 on DVD (40 discs), and $109.16 on Blu-ray Disc (21 discs).
Bundles of all 10 seasons also are available digitally through other retailers, like Apple iTunes and Walmart’s Vudu. They, too, are leading sales.
Individual season sets are also available for purchase on disc and through digital retailers, including Amazon Prime. DVD season sets sell for $13.19 on Amazon, with digital season sets going for $19.95. Consumers who want digital versions also can buy individual episodes at $1.99.
During the five months in which “Friends” is absent from the streaming world, Brown said, Warner Bros. Home Entertainment will mount a “robust” promotional campaign he hopes will drive sales even higher.
The surging popularity of Netflix and other subscription streaming services like Hulu, with their emphasis on episodic programming, has decimated the TV DVD business.
In May, CBS Interactive shut down the long-running TVShowsOnDVD.com website 13 years after it was launched, near the time TV DVD reached its peak with an annual consumer spend estimated at $4 billion.
That’s why Jeff Brown, the Warner EVP who oversees TV and franchise for the studio’s home entertainment division, is increasingly focusing on digital distribution — with stellar results, he said. According to Brown, Warner Bros. is the No. 1 studio in TV digital — and TV physical, as well.
Brown reports that at Warner Bros., electronic sellthrough (EST) of catalog TV properties is up 25% so far this year. The category, he said, has shown steady double-digit growth since the fourth quarter of 2017.
“This is a viable category that all retailers should support,” he said, noting that catalog accounts for about 50% of total TV EST sales.
“Our experience shows us that consumers will buy popular TV shows, particularly catalog favorites not on mainstream streaming services,” Brown said.
Reasons vary for the growth, he said. They range from a proliferation of available TV content and increased use of streaming media players such as Roku, making it easier for consumers to access the content digitally.
Brown says the most popular distribution channels include Amazon, iTunes, Vudu, Google Play, Xbox, Sony, Comcast and DirecTV.
Most sales are of “season pass” transactions, giving viewers access to an entire season of a particular TV show. These passes typically retail for between $9.99 and $39.99 — depending on content, format (HD is generally more expensive than SD), and whether there’s a promotion running.
Episodes may also be purchased individually, usually at $1.99 for standard-definition and $2.99 for high-definition.
Brown said Warner’s most popular TV catalog products include season one of “Westworld” and seasons one and two of “The Big Bang Theory.” “’Riverdale’ was a hit new release this year and season one will soon be in the catalog window,” he said. Deep catalog shows such as “Fringe” and “Chuck” are also strong sellers.
And just because a show originates on a streaming service like Hulu or Netflix doesn’t mean there are no EST sales to be had, Brown said. Indeed, in the overall catalog TV EST category, one of the top sellers is Hulu’s “The Handmaid’s Tale.”
Meanwhile, on the physical-media front, TV DVD sales continue to decline at an annual rate of about 15%, although Brown notes, “We do see demand for complete-series sets and for evergreen product, such as “Friends” and “Tales From the Crypt.”
The same goes for series with big “fanboy” bases, such as “Rick and Morty,” and shows that have been on the air for a long time, such as “Supernatural” and “Big Bang Theory.”
In addition, Brown said, “research shows collectors still have a soft spot for physical” — although he adds, “We believe there is growing interest in building digital libraries. Our research indicates there’s a lot of upside in TV EST market — with potential interest in owning TV series digitally nearly twice as high as current penetration.”