Blu-ray Spells Profits For Lionsgate
The high-def format is generating more per unit sale.
By Swanni
The Hollywood Reporter writes today that Lionsgate Entertainment is now making $15 in profit for every sale of an older Blu-ray disc title -- and $21 for new releases like War.
Blu-ray discs are priced higher than standard-def DVDs, enabling the studios to generate more in profits. Some new titles cost around $30 at retail, compared to half that for the standard-def DVD release.
And SMH Capital analyst David Miller tells THR that Lionsgate sold an additional 1.3 million Blu-ray discs over his projections following Toshiba's announcement that it was exiting the HD DVD business.
That corresponds with other estimates that Blu-ray sales have been surging since Toshiba ended the high-def format war.
Miller has now raised his fourth-quarter revenue projection for Lionsgate from $400 million to $419 million.
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Swanni (Phillip Swann) is
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