Paramount Home Entertainment Ups Q2 Domestic Revenue 3%

Paramount Home Entertainment May 10 reported second-quarter (ended March 31) domestic revenue of $104 million, up 3% from revenue of almost $101 million during the previous-year period. International revenue fell 19% to $50 million from $61.7 million.

Overall, home entertainment revenue dipped 5.6% to $154 million from revenue of $163 million last fiscal year. Revenue through the first-half of the fiscal year is down about 4% to $332 million from $346 million.

The studio’s top-selling disc, Instant Family, has sold almost $4 million in combined DVD/Blu-ray Disc units since its March 5 retail bow.

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Meanwhile, Paramount Pictures reported its ninth straight quarter of improved operating income to $29 million, which was up 222% from operating income of $13 million during the previous-year period.

Theatrical revenue leapfrogged 244% to $172 million from $70.5 million last year and largely driven by Bumblebee. Domestic revenue increased 144% to $66 million while international revenue increased to $106 million.

Separately, Nickelodeon’s child-based subscription streaming video service Noggin topped 2.5 million subscribers globally. Noggin, Nick Hits, Comedy Central Now and MTV Hits will be offered as Apple TV Channels on the new Apple TV app for iPhone, iPad and Apple TV later this month, on Samsung this spring and on Mac this fall.

In April, Paramount+ signed its first Latin American partnership with NET in Brazil and Claro video in the rest of Latin America, including on mobile.

At the end of April, monthly active users grew to approximately 16 million, up 31% from 12 million since December 2018.

Viacom also announced several new distribution and content deals. Comcast is adding Pluto TV in its Xfinity Flex service, and Pluto TV will be coming to Xfinity X1 soon. Grew roster of 150+ content partners with recent additions of CNN, BBC and Major League Soccer.

The company is launching Pluto Latino, its U.S. Hispanic channels, in July. International plans include launches in Latin America and Switzerland, and expansion in the U.K., Germany and Austria.

Viacom Takes Paramount+ Streaming Service to Latin America; Inks CNN Content Deal with Pluto TV

Viacom International Media Networks is set to expand the Paramount+ streaming video platform to Latin America.

The SVOD service, which first launched in Scandinavia (in response to HBO Nordics in 2017 and later in Central and Eastern Europe – known as Paramount Play), will become available May 1 in Brazil in a partnership with telecom NET, followed by wider distribution through a mobile deal with America Movil.

Paramount+ affords Viacom and Paramount Pictures international streaming distribution of more than 150 movies and original TV shows, including “Yellowstone,” starring Kevin Costner, “The Handmaids’ Tale” (available exclusively on Hulu in the U.S.), in addition to branded content from MTV, Comedy Central, Nickelodeon and Nick Jr.

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“By forging partnerships with the world’s leading operators and distributors, we are able to bring Viacom’s premium content to new global audiences,” David Lynn, president and CEO of Viacom International Media Networks, said in a media statement. “As the media landscape continues to evolve, we will aggressively innovate to expand our partner offerings, including Paramount+, across our massive global footprint.”

Indeed, while Paramount+ represents Viacom’s aggressive strategy to close the digital divide with rival studios, following the recent purchase of Pluto TV, Viacom is fortifying the ad-supported VOD platform with proprietary and third-party content.

Pluto TV just announced a new channel launch featuring content from WarnerMedia’s CNN – which itself is planning an OTT video product in 2020.

“At a time when news cycles are never-ending, in a world that is constantly evolving, CNN’s coveted daily reporting and in-depth features are perfect for our audience to be informed, with immediacy, accuracy and ease,” Amy Kuessner, SVP of content partnerships at Pluto TV, said in a statement. “Pluto TV’s mission to ‘entertain the planet’ also means informing the planet of what is going on in the world, and there is no better partner than the most trusted name in news.”

Mary Daily Upped to Co-President, Worldwide Marketing & Distribution at Paramount

Long-time home entertainment executive Mary Daily has been promoted to co-president of worldwide marketing and distribution at Paramount Pictures.

Daily, who was president of international marketing and worldwide home entertainment, joins Marc Weinstock, who was named president of worldwide marketing and distribution by studio CEO Jim Gianopulos.

Daily, who joined Paramount in 2017, previously held the position of president and chief marketing officer, worldwide marketing for Twentieth Century Fox Home Entertainment since 2011.

The executive worked on theatrical and home entertainment campaigns for A Quiet Place, Bumblebee and Mission: Impossible — Fallout.

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Together with Weinstock, Daily will spearhead marketing, advertising and distribution strategies for Paramount’s theatrical releases.

“Working in lockstep, Marc and Mary will be an unstoppable force and the ideal combination of skills and leadership experience to move our marketing and distribution teams forward,” Gianopulos said in a statement.

 

China’s Tencent Partnering With Paramount on ‘Bumblebee’ and ‘Top Gun’ Theatrical Releases

Tencent, the Chinese multinational entertainment conglomerate, Dec. 5 announced a partnership and co-financing deal with Paramount Pictures for the studio’s upcoming Bumblebee theatrical release, in addition to next year’s Top Gun sequel featuring Tom Cruise.

Tencent, which operates numerous entertainment ventures in China, including Netflix knockoff Tencent Video, separately filed a $1.4 billion IPO for its Tencent Music branded streaming service.

As an investor and co-marketing partner, Tencent Pictures will assist with the marketing and promotions of Bumblebee in mainland China. Hasbro, creator and owner of the Transformers brand on which the film franchise is based, is also a co-financier on Bumblebee.

Starring Hailee Steinfeld (Pitch Perfect 3The Edge of Seventeen), John Cena (Blockers, Trainwreck), and Jorge Lendeborg Jr. (Love, Simon, Spiderman: Homecoming)Bumblebee is an Autobot character set in 1987 as a prequel to the Transformers franchise.

Bumblebee represents Tencent’s first international project after Warner Bros.’ Venom and its first collaboration with Paramount. Other Hollywood domestic collaborations include Warcraft, Kong: Skull IslandWonder Woman, La La Land and Ready Player One.

“Tencent’s involvement in many high-profile international projects has demonstrated its strong capacity in marketing campaigns in China,” Jim Gianopulos, CEO, Paramount Pictures, said in a statement.

 

Fandango Including Free Digital Comics with ‘Aquaman’ Theatrical Ticket Purchase

Fandango Nov. 20 said first-day advanced tickets sales for  Warner Bros.’ upcoming Dec. 21 theatrical release of Aquaman have eclipsed Sony Pictures’ Venom and Paramount Pictures’ Mission: Impossible – Fallout in their first days of pre-sales.

Consumers buying tickets on Fandango with their Fandango VIP Accountsreceive five free digital comics (including Aquaman #1) from DC as with their ticket purchase. Fandango is also launching exclusive “Aquaman” gift cards at its gift card portal here.

“Jason Momoa’s Aquaman is quickly becoming one of the more popular big-screen superheroes,” Erik Davis, managing director at Fandango, said in a statement. “Not only does it appear to be the most ambitious DC Comics film to date from a visual effects perspective, but fans are anxious to see new female heroes played by Amber Heard and Nicole Kidman, as well as the first superhero film directed by James Wan [Saw, Insidious, and The Conjuring].”

 

 

 

Paramount Pictures Q4 Home Entertainment Revenue Declines

Paramount Home Media Distribution Nov. 16 reported fourth-quarter (ended Sept. 30) revenue of $157 million – down 17% from revenue of $190 million from the previous-year period.

Domestic revenue from sales of physical and digital movies and TV shows reached $103 million, compared to $118.5 million last year. International sales totaled $54 million, down 22% from $65.9 million in the previous-year period.

The studio attributed the drop in part to timing of releases and product mix.

Indeed, Book Club, starring Jane Fonda, Diane Keaton, Candice Bergen and Mary Steenburgen, has generated $6.8 million in combined DVD, Blu-ray Disc sales since its Aug. 28 retail release. The title ranks just 54thin sales in 2018, according to The-Numbers.com.

A Quiet Place, the top-performing theatrical horror/thriller in the past decade, ranks 25thon the year with $12.6 million in disc sales.

By comparison, top home entertainment releases in 2017 included Star Trek Beyond, Jack Reacher: Never Go Back and Arrival, among others.

Mission: Impossible – Fallout, Paramount’s top-performing theatrical title of 2018 – and highest grossing title in the franchise – doesn’t reach retail shelves until Dec. 4.

For the fiscal year, Paramount Home Media Distribution sales topped $622 million – down about 27% from $849 million last year.

Hasbro Movie, TV Streaming Deals Soften Toys R Us Revenue Loss

Entertainment licensing of TV shows and movies proved a fiscal lifeline for venerable toy maker Hasbro.

The company Oct. 22 reported third-quarter (ended Sept. 30) net income of nearly $264 million, about equal to net income of $265.5 million during the previous-year period. Revenue fell 12% to $1.56 billion from $1.79 billion last year.

Revenue loss was in large part due to lingering effects of the shuttering of major retailer Toys R Us, ongoing changes in consumer shopping behaviors and foreign exchange — the latter having a negative impact of $32 million, or 2% of Q3 revenue.

Hasbro managed to offset the declines in part to the entertainment and licensing segment, which saw revenue increase 45% to $84.8 million compared to $58.4 million in 2017. Operating profit increased 99% to $33.7 million, or 39.7% of net revenue, compared to $16.9 million, or 28.9% of net revenue, in 2017.

Segment revenue benefited from a multiyear digital streaming deal for Hasbro television programming and revenue from the 2017 My Little Pony: The Movie.

In addition, the adoption of new accounting rules concerning revenue from contracts favorably impacted the timing of revenue recognition in the quarter. Higher revenue and a favorable mix, coupled with cost reductions, drove higher operating profit and operating profit margin in the quarter.

Brand revenue decreased 5% to $847.7 million, due in part to My Little Pony and Transformers: The Last Knight theatrical releases occurring in 2017.

Last November, Paramount Pictures and Hasbro updated a pact to produce and distribute content based on Hasbro brands, as well as original stories. The companies have partnered on five “Transformers” movies to date, as well as two “G.I. Joe” films, and the first “Transformers” spinoff, Bumblebee, slated for theatrical release on Dec. 21.

The movie co-stars Oscar-nominee Hailee Steinfeld (True Grit) and John Cena (Blockers), and is directed by Travis Knight.

“Global retailers have ambitious programs this holiday season … including programs behind our feature film, Bumblebee,” CEO Brian Goldner said in a statement.

“Hasbro remains in a strong financial position, including good operating profit margins, $907 million in cash and quality inventory to support our business this holiday season,” added CFO Deborah Thomas. “As we manage through a very disruptive environment, the strength of our brands and our business allows us to continue to invest to drive profitable growth in future years.”

Viacom CEO: We’re Seeing Incredible Turnaround at Paramount

Among major studios, Paramount Pictures has taken an outsized share of fiscal hits in recent years — only generating its first operating profit since 2015 in March.

Speaking Sept. 12 at Goldman Sachs 27th Annual Communacopia confab in New York, Bob Bakish, CEO of corporate parent Viacom, said Paramount is a very different place today — thanks in part to a trio of theatrical hits and increased television content production, among other initiatives.

Specifically, low budget titles A Quiet Place and romantic comedy Book Club, together with Mission: Impossible – Fallout, the sixth installment in the Tom Cruise-starring franchise, overperformed at the box office – with A Quiet Placeand Book Club now generating significant sellthrough revenue.

Indeed, A Quiet Place grossed more than $188 million domestically, making it the second-highest grossing horror film in the U.S. over the past decade. The film has earned more than $332 million worldwide with a production cost of approximately $20 million.

Released in May 2018, Book Club earned more than $68 million at the domestic box office — more than six times its $10 million acquisition cost. The titles were released in retail (digital and physical) channels on July 10 and Aug. 28, respectively.

“Both those films are killing it in transactions for us right now,” Bakish said.

The executive said that when combined with the global box office of Fallout– the largest in Mission: Impossible franchise history, Paramount has turned the fiscal corner.

“Take those three things together, and there’s no question the [Paramount] mountain is back,” Bakish said.

In addition to movies, Paramount Television has upped content production from nine series on broadcast and online to 16 shows this year and is poised to generate $400 million in revenue.

Notable series include “13 Reasons Why” for Netflix; “The Alienist” for TNT and “Tom Clancy’s Jack Ryan” from Amazon Prime Video. Original movie production for third-party SVOD players has begun with announcements pending, according to Bakish.

“Paramount is not only back in the TV production business, it’s a hit maker,” said Bakish. “It’s a great opportunity.”

What Viacom is not doing is developing a mass market SVOD service to compete with Netflix.

“That business is looking more and more crowded,” Bakish said. “It is a very capital-intensive game if you look what program expenses at those platforms are.”

Instead Viacom is approaching over-the-top video with strategy targeting niche SVOD services such as Noggin.com and distribution through third-party platforms such as Amazon Channels.

“Putting Noggin on Amazon Channels more than doubled subs rather quickly,” Bakish said. “And we’re in the late stages of adding other distributors. We think that’s a very effective strategy.”

Viacom is launching an ad-supported OTT video service featuring library content, and creating third-party licensed content featuring Viacom brands MTV, Nickelodeon, Comedy Central, BET, etc.

Bakish says its “part promotion, part revenue,” with digital initiatives produced under Viacom Digital Studios, which launched nine months ago.

“We’re feeling very good about the momentum we have going into the [current] fourth quarter. We are very focused on operating the assets we already own. It’s a quest for scale both inside and outside the company,” he said.

 

 

 

Imax and DTS Form Home Entertainment Partnership

Imax Corp. and DTS, a wholly owned subsidiary of Xperi Corp., have announced a new home entertainment partnership with the launch of the Imax Enhanced program.

The new certification and licensing program combines the high-end consumer electronics products with Imax digitally re-mastered 4K HDR content and DTS audio technologies to offer consumers a new level of quality in immersive sight and sound experiences for the home, according to a press release from Xperi.

The companies also announced that a number of global consumer electronics and entertainment market leaders have joined the program as launch partners, including Sony Electronics, Sony Pictures, Paramount Pictures, and Sound United – parent company to Denon and Marantz.

To be accepted into the program, which launches this fall, consumer electronics manufacturers must design top-of-the-line 4K HDR televisions, A/V receivers, sound systems and other home theater equipment to meet a carefully prescribed set of the highest audio and video performance standards, set by a certification committee of Imax and DTS engineers and Hollywood’s leading technical specialists, according to the release.

Imax and DTS developed the program “to make it easier for consumers to select the products and content that will deliver the highest-quality, sharpest 4K HDR images and powerful, immersive sound at home,” according to the release.

“The companies are designing an Imax Mode for the enhanced devices that will be meticulously optimized to play digitally re-mastered content as the filmmaker intended in the home,” the release stated.

Consumers can access content from Hollywood studios as well as select Imax documentaries through the Imax Home Entertainment division. The company will also work with its global studio and other content partners to make available enhanced versions of blockbuster movies and additional programming, according to the release.

“While the Imax theatrical experience continues to be the gold standard in blockbuster movie-going, today we are launching an exciting new program that applies components of Imax’s and DTS’ technology and expertise to deliver consumers a level of quality never before experienced at home,” said Imax CEO Richard L. Gelfond in a statement. “This is a natural extension of our core business in experiential entertainment. By partnering with a well-established consumer electronics licensing leader, we can leverage both our brand and key technology innovations through DTS’ global licensing platform, without having to make the direct investments often necessary to build a new revenue stream. DTS will build that new business and we will share in the benefits from the program. We’re encouraged by the strong interest from our launch partner companies and look forward to working with DTS to grow the program further over time.”

“DTS has a rich history in delivering premium entertainment experiences to the theater and at home, and the Imax Enhanced program is an exciting opportunity to stay at the forefront of home entertainment,” said Xperi CEO Jon Kirchner in a statement. “Through the combined engineering and licensing efforts of the DTS and Imax teams, as well as support from a number of the world’s leading device and content partners, the Imax Enhanced program will bring a completely new, enhanced experience to the home while also supporting the continued penetration of DTS decoders, bringing premium sound to consumers’ devices.”

The program will use a proprietary post-production process developed by Imax to digitally re-master content to produce more vibrant colors, greater contrast and sharper clarity, according to the release. The companies will also partner with Hollywood sound mixers to use a special variant of the DTS:X codec technology integrated in home audio equipment to deliver an Imax signature sound experience.

Paramount Pictures Ups Q3 Profit

Paramount Pictures Aug. 9 reported third-quarter (ended June 30) operating income of $44 million, which was up 388% from operating income of $9 million during the previous-year period. Revenue declined about 9% to $772 million from $847 million last year.

Paramount Home Media Distribution reported revenue of $119 million, which was down 45% from revenue of $218 million.Home entertainment declines reflected the mix and number of titles in release. Domestic and international home entertainment revenue decreased 47% and 41%, respectively.

Significant current-year home entertainment releases included, Daddy’s Home 2 , compared to Star Trek Beyond, Jack Reacher: Never Go Back and Arrival in the prior year.

The studio attributed the overall revenue drop to a 33% decline in international revenue to $308 million. Domestic revenue increased 20% to $464 million.

Theatrical revenue dropped 21% to $208 million principally due to lower carryover revenue. Domestic theatrical revenue grew 58%, driven by the strong performance of current quarter releases A Quiet Place and Book Club, while international theatrical revenue decreased 58%, reflecting comparisons against the release of Transformers: The Last Knight and Ghost in the Shell in the prior year quarter.

Regardless, Paramount Pictures has improved adjusted operating income in six consecutive quarters and was profitable in the second and third quarters of fiscal 2018.

“Paramount is revitalized, with outstanding box office performance and growing television production revenues driving substantial gains in profitability,” Bob Bakish, CEO of corporate parent Viacom, said in a statement.

Indeed, A Quiet Place has grossed more than $188 million domestically to date, making it the second-highest grossing horror film in the U.S. over the past decade. The film has so far earned more than $332 million at the worldwide box office at a production cost of approximately $20 million.

Released in May 2018, Book Club has gone on to earn more than $68 million to date at the domestic box office — more than six times its acquisition cost of $10 million.

The current fourth-quarter release of Mission: Impossible – Fallout grossed nearly $330 million globally in its first two weekends – the biggest opening ever for the franchise.