Warner Bros. CEO wants to combine UV & DMA

[satam55]

Warner CEO Wants to Meld UltraViolet With Disney Movies Anywhere

4 Mar, 2015 By: Erik Gruenwedel

Kevin Tsujihara cites consumer confusion with competing cloud-based platforms in hampering digital movie sales

Warner Bros. would like to offer a seamless path for consumers buying digital and physical movies stored in the industry’s competing cloud-based platforms: UltraViolet and Disney Movies Anywhere, CEO Kevin Tsujihara told an investor group.

With 21 million registered accounts, UltraViolet is the industry-backed platform enabling consumers to access digital files of movies bought electronically or on disc. Disney remains the lone studio holdout, preferring to partner Disney Movies Anywhere with Google Play, iTunes and related apps and cloud-based storage — none of which are linked to UltraViolet.

Disney Movies Anywhere last November did partner with Walmart’s Vudu.com, which is an UltraViolet platform. Consumers have access to about 400 Disney, Pixar and Marvel titles — content that remains separate from UltraViolet.

Speaking March 4 at the Morgan Stanley Technology, Media & Telecom confab in San Francisco, Tsujihara said the fact Disney movies are digitally separate from the rest of the industry is problematic to consumers and the growth of electronic sellthrough.

The CEO, who formerly headed Warner Bros. Home Entertainment, said that while digital sales of movies increased 50% in 2013, growth slowed to 30% in 2014. Year-to-date, digital sales remain up about 30% — a growth trajectory Tsujihara said is not fast enough to offset declining disc sales.

“It would be my goal to bridge [UltraViolet] with what Disney is doing, so the consumer doesn’t have to guess is that a Disney movie, or is that a Fox, Sony, Paramount, Universal or Warner Bros. movie?” he said.

Tsujihara said Disney and other studios could maintain separate sellthrough platforms while combining cloud-based functionality on the backend. The executive said combining user data between UltraViolet and Disney would help the industry grow digital content sales.

The amalgamation of platforms underscores Warner’s strategy of upping focus on digital distribution of content in home entertainment as a means of growing margins. Tsujihara contends digital sales don’t have to surpass physical. Even at a 50/50 split, digital’s higher margins would more than offset physical while impacting the bottom line.

“To be more profitable, we don’t need [consumer spending on home video] to grow,” he said.

While iTunes controls 60% and 40% of Warner’s digital sales and transactional VOD business, respectively, Comcast’s successful launch in late 2013 of a digital sales platform underscored the importance offering consumers an easy-to-use storefront.

“People will still buy movies,” Tsujihara said.

At the same time, he said home entertainment has to do a better job marketing the concept of content ownership to consumers through easier user-interfaces and interoperability.

“We have to focus on what the consumer is looking for: Simplicity. The magical thing about DVD was it was simple, easy and worked everywhere. I think we have to replicate that in EST,” Tsujihara said.


http://homemediamagazine.com/studios...anywhere-35355

Hmmm...

[BlakkMajik3000]

I'm all for this idea, but I have to wonder who it really benefits at this point.

When they had it walled off to only iTunes, yea that was painful. However, DMA now works with both Google Play and VUDU. Since Warner owns Flixster, it would be a better idea to negotiate DMA capability for their own UV service.

If they want to do something truly beneficial to the consumer, they would be focusing on getting other platforms over to UV, such as Amazon, Google Play, Playstation Video, Xbox Video, and possibly even iTunes. If they are serious about growing UV, it needs to be everywhere, and right now it's limited to a handful of vendors.

Disney is going to do what they want, and we all know that. I think their (DECE) efforts would be better spent expanding where UV is available, instead of trying to woo a single studio.

[Evil]

Heh. Tsujihara is dreaming.

It would be my goal to bridge [UltraViolet] with what Disney is doing, so the consumer doesn’t have to guess is that a Disney movie, or is that a Fox, Sony, Paramount, Universal or Warner Bros. movie?” he said.

Consumers already don't have to worry about that if they just redeem everything in Vudu. All of the new codes that are being out by those studios can be redeemed directly in Vudu. You only have to worry about studios - specifically Disney - when you're dealing with Flixster since you can't redeem Disney codes there.

Disney went through a lot of trouble to set-up what is essentially their own UV system for their movies. They're not going to just abandon that and join UV especially since it seems to be working well for them. Meanwhile, Flixster is being left in the digital dust - not part of DMA, a very buggy interface, and nothing to help them stand out in a crowded field. If I was Tsujihara, I would be trying to make Flixster a DMA partner, fix the technical problems, and try to find something that would make people use Flixster by choice. I don't think he has a good grasp at all of the realities of the current digital environment.

[satam55]

Originally Posted by Evil

Heh. Tsujihara is dreaming.


Consumers already don't have to worry about that if they just redeem everything in Vudu. All of the new codes that are being out by those studios can be redeemed directly in Vudu. You only have to worry about studios - specifically Disney - when you're dealing with Flixster since you can't redeem Disney codes there.

Disney went through a lot of trouble to set-up what is essentially their own UV system for their movies. They're not going to just abandon that and join UV especially since it seems to be working well for them. Meanwhile, Flixster is being left in the digital dust - not part of DMA, a very buggy interface, and nothing to help them stand out in a crowded field. If I was Tsujihara, I would be trying to make Flixster a DMA partner, fix the technical problems, and try to find something that would make people use Flixster by choice. I don't think he has a good grasp at all of the realities of the current digital environment.

I would just be happy if the WB/HBO Movies & TV shows on Flixster would have the special features that are on the Blu-ray/DVD releases.

How have WB, Sony, Universal, & Paramount not copied this feature on this store fronts since DMA launched?

[TBDave]

UV could learn a lot from DMA. Disney has made it so simple to use and understand.

The official UV website sucks. It would be great if they had one central website for users to redeem codes, manage their library, and customer support that can fix problems quickly.

[Cranston37]

Originally Posted by TBDave

The official UV website sucks. It would be great if they had one central website for users to redeem codes, manage their library, and customer support that can fix problems quickly.

The official UV site already does all that. You can redeem codes, delete titles in your library, contact customer support, etc...

[disneywildcat]

Originally Posted by Evil

Heh. Tsujihara is dreaming.


Consumers already don't have to worry about that if they just redeem everything in Vudu. All of the new codes that are being out by those studios can be redeemed directly in Vudu. You only have to worry about studios - specifically Disney - when you're dealing with Flixster since you can't redeem Disney codes there.

Disney went through a lot of trouble to set-up what is essentially their own UV system for their movies. They're not going to just abandon that and join UV especially since it seems to be working well for them. Meanwhile, Flixster is being left in the digital dust - not part of DMA, a very buggy interface, and nothing to help them stand out in a crowded field. If I was Tsujihara, I would be trying to make Flixster a DMA partner, fix the technical problems, and try to find something that would make people use Flixster by choice. I don't think he has a good grasp at all of the realities of the current digital environment.

Flixster not only can't redeem Disney movies, it doesn't sell Disney movies period. It's ironic considering that UV provider M-GO (which is owned by Dreamworks Animation and Technicolor) sells Disney movies despite being partially owned by a competing studio (although M-GO isn't able to redeem Disney movies either).

[jbloggs]

What we need is for Google and/or Amazon to join UV.

[armyjon99]

Originally Posted by jbloggs

What we need is for Google and/or Amazon to join UV.

I can possibly see google joining. Amazon I don't think they'd ever consider joining they have their streaming service tied in with rentals and purchases.