Monday, October 13, 2008

Warner Bros to release films online before DVD' S. Korea

Warner Brothers Entertainment has taken the first step towards what many think will be the future of the entertainment industry by releasing its films online in South Korea before they are released in the country on DVD. Why South Korea? Not only does S. Korea have a high percentage of broadband penetration, but it's also one of the global leaders in DVD piracy, lagging only behind China.

Warner Bros is expected to reap the financial benefits by bringing forward the release of films online. Traditionally, DVD sales generate about $12bn a year, while rentals generate $7bn; the wrinkle is that studios take 20-25 per cent of the money from a rental but if the film is rented in digital form the share is closer to 70 per cent. Not too shabby...

What are the chances of this happening in the US? Not anytime soon, as 55% of all adult Americans now have a high-speed internet connection at home, according to a May 2008 survey conducted by the Pew Internet & American Life Project. While this is roughly 17% more than 2007, the US still lags behind 24 other countries worldwide when it comes to broadband penetration.

No comments: