Apple has cut a deal with the majors for same day and date release as the DVD of movie downloads via iTunes and Apple TV. I was interviewed by Bloomberg for this story in The Washington Post and this one in The Boston Globe. The highly valued window release structure at the heart of the studios business model is now collapsing. But get a load of those profit margins: triple the profits on DVD’s! Here is how Defamer.com put it: “Time Warner CEO Jeff Bewkes cited a 60%-70% profit margin during a VOD trial for Warner Bros. films on cable — more than twice the return on Time Warner DVD rentals.”
Maybe the giveaway on DVD residuals (see my post below on SAG-AMPTP negotiations) by SAG makes sense. IF, and it is a big IF, they get a big chunk of new media residuals.
The unanswered question then, tonight, is did the two Allens get something in return for dropping DVD residuals as a serious demand in the face of the continuing slide in DVD revenues and the ramp up of various new forms of digital distribution?