Universal Pictures Home Entertainment Revenue Declines

Universal Pictures Home Entertainment Jan. 23 said fourth-quarter (ended Dec. 31, 2018) revenue decreased 14.3% to $315 million from $368 million, reflecting the DVD/Blu-ray Disc and digital retail success of several releases in the prior year period, including Despicable Me 3, partially offset by Jurassic World: Fallen Kingdom and Mamma Mia! Here We Go Again in the recent fourth quarter.

For the year, home entertainment revenue topped $1 billion, down almost 19% from revenue of $1.28 billion in 2017.

Fallen Kingdom generated $57.3 million in revenue from the sales of 2.9 million combined DVD/Blu-ray Disc units, according to The-Numbers.com. Mamma Mia generated $17.7 million on sales of 1 million discs.

By comparison, Despicable Me 3 generated $35.7 million in revenue on sales of 2.1 million discs in 2017. The Fate of the Furious generated $46.5 million on sales of 2.3 million discs.

For the fiscal year, revenue from Universal Pictures decreased 5.8% to $7.2 billion compared to 2017, reflecting lower home entertainment, theatrical, other and content licensing revenue. Pre-tax earnings decreased 42.5% to $734 million compared to 2017, reflecting lower revenue as well as higher operating expenses.

Meanwhile, theatrical revenue increased 189.3% to $547 million from $189 million, reflecting the performances of Dr. Seuss’ The Grinch and Halloween in the just-concluded fourth quarter.



Universal Pictures Q3 Home Entertainment Revenue ‘Furious’

The fate of home entertainment studio financials often revolves the strength and timing of movie releases at the box office and at retail.

Universal Pictures Home Entertainment Oct. 25 reported third-quarter (ended Sept. 30) revenue of $260 million, which was down 13% from revenue of $299 million during the previous-year period. Year-to-date, revenue reaches nearly $780 million, down 9.5% from $860 million last year.

The studio cited unfavorable comparisons with The Fate of the Furious and The Boss Baby releases in the previous-year. Indeed, Furious generated more than $46 million is combined DVD/Blu-ray Disc unit sales in 2017, while Baby sold another $28 million, according to The-Numbers.com. The titles ranked 11thand 19thbest-selling discs last year.

In the current quarter, UPHE generated revenue from Fifty Shades Freed ($23.6 million since May 8 release), Pacific Rim Rising ($16.7 million since June 19 release) and Pitch Perfect 3 ($14.8 million since March 20), among others.

Overall, Universal Pictures revenue increased 3.8% to $1.8 billion in the quarter, reflecting increased theatrical and content licensing revenue.

Theatrical revenue increased 16.7%, due to the success of Jurassic World: Fallen Kingdom, and the performance of Mamma Mia! Here We Go Again.

Fallen Kingdom generated $1.3 billion at the global box office, including $417 million in the United States. Mamma Mia! generated $393 million at the box office, including $121 million domestically. Both titles were released on packaged media Sept. 18 and Oct. 23, respectively.

Content licensing revenue increased 8.6%, driven by the timing of when content was made available under licensing agreements. Pre-tax operating income plummeted 44.2% to $214 million, reflecting higher operating costs, partially offset by higher revenue.