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Fox Sees Strength in Blu-ray, and the End of DVD Down the Long, Long Road

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In a recent earnings call, Chase Carey from 20th Century Fox talked a bit about the future of distribution:

Jolanta Masojada — Crédit Suisse AG, Research Division

Chase, just following up on an earlier question. Can you talk about in the first half of Film, how much of film profit is coming from digital rather than how much revenue is coming? And what’s your view of the long-term potential for digital growth to compensate for DVD declines?

Chase Carey

You mean how much of the home entertainment? I’m not sure I can do this. I mean, clearly it’s more — the DVD business is still the majority of it though the growth is certainly Blu-ray and electronic digital distribution. Our growth there if you look out at future.

I mean DVDs been around for a long time. People like them and people continue to have them. But I think, as you said, where is the business going longer-term? It’s going to migrate towards form sort of digital distribution. So I think that is the longer-term future but [indiscernible] that. DVDs don’t have real legs. I mean, actually, Blu-ray has been a pretty good growth driver and Blu-ray growth rate grew at sort of like 20% or something right now.

So we’re going to — we’re certainly not going to just — we’re going to continue and make sure we manage that business intelligently and make sure we focus on both long-term as obviously always we’re driving towards but be intelligent about the short term.

And I think the DVD business continues to have legs.

Well, that’s certainly some dancing worthy of Muhammed Ali, so let’s try to parse it. Essentially he’s saying that while DVD is still the big money, Blu-ray is coming up fast, and he sees a future in the long term where DVD is supplanted by digital distribution to become the dominant way people buy movies. But I think he also feels that they’re not in any hurry to get there, or to push consumers out of models where they’re comfortable spending money (i.e. physical media). Either way, it’s nice to see an executive keeping an eye on the future, while not trying to invent it in the present.

Via: [Seeking Alpha]

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