Hollywood innovates - DECEMBER 2017 - Media Play News
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December 2017 « www.HomeMediaMagazine.com 3 PUBLISHER & EDITORIAL DIRECTOR Thomas K. Arnold ❙ tarnold@questex.com EDITOR IN CHIEF Stephanie Prange ❙ sprange@questex.com OPENING SHOTS BY THOMAS K. ARNOLD, PUBLISHER What a Long, Strange Trip MANAGING EDITOR John Latchem ❙ jlatchem@questex.com EDITORIAL W NEWS EDITOR Erik Gruenwedel ❙ egruenwedel@questex.com ith a nod to the Grateful Dead, GRAPHIC DESIGNER David Kowalsky ❙ davedmk@cox.net what a long, strange trip it’s been — CONTRIBUTING EDITOR both for Home Media Magazine and Mike Clark ❙ mclark47@comcast.net for the readers and advertisers who have made this nearly 40-year ride RESEARCH possible. MARKET RESEARCH DIRECTOR The magazine you are reading began life in August John Latchem ❙ jlatchem@questex.com 1979 as Video Store Magazine, a monthly publication catering to the new breed of video rental stores that DIGITAL MEDIA were springing up to take advantage of a brash new ONLINE MANAGER John Latchem ❙ jlatchem@questex.com business that allowed consumers to watch movies at home, whenever they wanted to, instead of having to wait for a rare TV airing. ASSOCIATE PUBLISHERS It was a chaotic beginning — the studios began Stephanie Prange ❙ sprange@questex.com John Boezinger ❙ jboezinger@questex.com issuing movies on videocassette with the intention of selling them to consumers. Retailers had other ADVERTISING ideas, and began snapping up new releases and rent- as they say. ACCOUNT EXECUTIVE ing them to the public, generating huge profits. The Home Media Magazine was there for you, covering John Boezinger studios, envious of all this cash, challenged retailers’ the news and telling you what it meant. 949-413-9311 ❙ jboezinger@questex.com right to rent until they were shot down by the First As both distribution channels and entertainment For reprints, call Wright’s Media: 877-652-5295 Sale doctrine to U.S. copyright law. options proliferated, studios wisely realized that the For List Rental, call Anthony Carraturo, MeritDirect LLC, Video Store Magazine was there for you, covering traditional divide between the computer and the TV 914-368-1083, ac@meritdirect.com the news and telling you what it meant. was fast eroding. They began selling their content Fast-forward two decades. The video rental mar- digitally over the Internet, and after a few false starts PRODUCTION ket, after many years of explosive growth, had ma- now have a common mechanism in Movies Any- PRODUCTION DIRECTOR Hal Garstein tured, and the studios finally got their wish with the where that feeds directly into the consumer’s primary PRODUCTION SPECIALIST emergence of DVD — a disruptive product (before wants of convenience and simplicity. Lynn Erdahl “disruption” was even in our lexicon) that turned Home Media Magazine was there for you, covering 212-895-8499 ❙ lerdahl@questex.com consumers from renters into buyers and gave Hol- the news and telling you what it meant. lywood its biggest cash cow in history. The money For nearly 40 years, we’ve been partners. We’ve OFFICE shared the ups, the downs, the victories and the chal- generated from DVD sales surpassed the domestic 714-759-4661 homemediamagazine@questex.com box office in 2001 and home entertainment execu- lenges, the high hurdles and the occasional stumbles. 4590 MacArthur Blvd., Suite 500 • Newport Beach, CA 92660 tives all of a sudden found themselves a part of the We’ve been your voice — and your historians. And movie greenlighting process. we thank you for your many years of support. CREDIT CREDIT/COLLECTIONS DIRECTOR Video Store Magazine was there for you, covering This is the last issue of Home Media Magazine to Ron Wright Sr. the news and telling you what it meant. be published by our longtime owners, Questex LLC. In their haste to develop a high-definition succes- Special thanks goes to the leadership team for 12 AUDIENCE DEVELOPMENT sor to DVD, Hollywood and the tech community years of committed oversight, passion about what For subscriptions, please go online to www.homemediamagazine.com For subscription questions and/or address changes momentarily forgot the importance of compromise we do, and integrity. email jboezinger@questex.com or call 949-413-9311 and rushed to market two competing formats. A Personally, I have covered the industry for nearly For current single copy, back issues or CD-ROM, call 949-413-9311 bruising format war resulted that stymied growth. 30 years — I began writing for Video Store Magazine AUDIENCE DEVELOPMENT MANAGER What by then had become Home Media Magazine back in 1988 — and intend to continue on. The long, Debbie Gullian ❙ dgullian@questex.com was there for you, covering the news and telling you strange trip is not yet over. what it meant. Blu-ray Disc ultimately triumphed, but by then another disruptive force had emerged: Netflix, which quickly outgrew its disc rental-by-mail roots and PRESIDENT & CEO Kerry C. Gumas began letting consumers “stream” movies over the Internet for a monthly subscription fee. The studios © 2017 Questex LLC All rights reserved. No part of this publication may be reproduced or transmit- laughed at such a foolhardy business model — but Thomas K. Arnold’s email address is tarnold@questex.com ted in any form or by any means, electronic or mechanical including by photocopy, recording or information storage and retrieval system, without permission in writing from the publisher. Netflix had the last laugh, all the way to the bank, Authorization to photocopy items for internal or personal use, or the internal or personal use of specific clients, is granted by Questex LLC for libraries and other users registered with the Copyright Clearance Center, 222 Rosewood Dr., Danvers, MA 01923 phone: 978-750-8400 fax 978-750-4470; call for copying beyond that permitted by Sections 107 or 108 of the U.S. Copyright Law. For those not registered with the CCC, call Wright’s Media for permission request: 877-652-5295. Printed in the U.S.A.
“IT WILL CREEP ORDER DUE DATE: YOU OUT BIG TIME.” — Peter Travers, ROLLING STONE NOVEMBER 28 EST DATE: DECEMBER 19 STREET DATE: JANUARY 9 Blu-ray™ Combo Pack $35.99 SRP #1000634327 4K Ultra HD™ $44.95 SRP #1000634423 2-Disc Special-Edition DVD $28.98 SRP #1000634326 Pennywise Lives! Discover how Bill Skarsgård prepared to portray the primordial creature known as Pennywise the Dancing Clown. The Losers’ Club Get up close and personal with the teenage stars of IT as they bond together during the film’s production. Author of Fear Stephen King reveals the roots of his best-selling novel, the nature of childhood fear, and how he created his most famous monster, Pennywise. Blu-ray™ and 4K Ultra HD™ Deleted Scenes Eleven deleted or extended scenes from the film. include Digital. facebook.com/ITMovie wb.com/4KUHD Color/135 Mins. Special Features Are Not MPAA-Rated and May Not Be Hi-Def or SDH. © 2017 Warner Bros. Entertainment Inc. All rights reserved. *Worldwide Box Office as of 11/07/2017 per BoxOfficeMojo.com. ENGLISH SDH
For exclusive and expanded content, go to www.HomeMediaMagazine.com 5 FROM THE EDITOR BY STEPHANIE PRANGE, EDITOR IN CHIEF Studios Will Innovate or Die I n this issue produced on the eve of the Anywhere looks to be the killer app for consumers, technology, storytelling, all of it annual Consumer Electronics Show in digital ownership. is changing at the same time and that can be Las Vegas, we catalog the many in- Consumers also want to access the latest disconcerting — and it can also be exciting,” novative moves the studios are making as technology, and studios are responding. Jim Wuthrich, president of the Americans consumer tastes and habits change. They are launching virtual and augmented and global strategy at Warner Bros. Home Consumers want to be able to access mov- reality products that expand the very defini- Entertainment, recently told me. ies they’ve bought digitally or physically on tion of home entertainment. They are also Scary and exciting, indeed! That’s always all of their devices, anywhere they are. Enter putting technology behind movie extras, been what the home entertainment busi- Movies Anywhere, the digital locker service linking to the web to expand the experience ness is about, and the industry will continue launched in October with support from five of a film through Google Maps and other to innovate its way into the future. «AS THE ONLINE SERVICES GET of the major studios and key digital retailers online sources. INTO THE STUDIO BUSINESS, iTunes, Amazon Video, Google Play and With Netflix and Amazon, among other THE STUDIOS ARE GETTING Vudu. Movies Anywhere has gotten off to online behemoths, getting into the pro- INTO THE ONLINE SERVICE a great start, and has adapted to consumer duction business themselves, studios such MARKET.» feedback about sorting their libraries and as Disney are looking to launch their own Stephanie Prange’s email address is sprange@questex.com other functionality. Recently, I used the digital services to compete. As the online service to watch a film on my big-screen services get into the studio business, the TV that I didn’t have on disc and the studios are getting into the online service experience was seamless. My daughter at market. college has used the service as well, to access The home entertainment business is, and titles that we have in our home library. If has always been, fluid. my experience is any example, then Movies “Business models, the customer base, IN THIS ISSUE DECEMBER 2017 » VOL. 39 » NO. 12 ON THE WEB www.Homemediamagazine.com DEPARTMENTS FEATURES FINAL CUT » 6 COVER STORY » 11 Disney Acquiring Fox Studio Assets Hollywood Innovates for $52.4 Billion As technology advances, new formats and distribution channels continue to proliferate. This The Walt Disney Co. Dec. 14 announced it is acquiring special section looks at some of the highlights of 2017 — and provides a glimpse of what is to ■ NEW REVIEWS 21st Century Fox’s film and television studios, cable come in 2018 and beyond. ❯ Dunkirk Blu-ray (Warner) entertainment networks and international TV busi- ❯ Despicable Me 3 Blu-ray (Universal) nesses in a massive deal. ❯ The Hitman’s Bodyguard Blu-ray (Lionsgate) FINAL CUT » 7 ❯ The Crown: Season 1 Blu-ray Redbox Launches Digital Service (Sony Pictures) Redbox on Demand lets consumers digitally ❯ Election Blu-ray (Criterion) purchase or rent movies and TV shows from the HomeMediaMagazine.com/Reviews Redbox website and other platforms. NEWS » 8 ONLINE TOP 5 www.Homemediamagazine.com ‘Variety’ Hall of Fame Honors Home Entertainment Industry Leaders The 37th Variety Press Play Home Entertainment MOST-READ HEADLINES & Digital Hall of Fame took place Dec. 5. Weeks of Nov. 12 - Dec. 10 Hollywood RESEARCH » 19 Top 50 Movers & Shakers of ‘Despicable Me 3’ Debuts at No. 1 innovates Home Entertainment — 2017 Universal’s animated hit Despicable Me 3 easily 2 Redbox Selling Digital Movie debuted at No. 1 on the home video sales charts Codes the week ended Dec. 9. 3 Netflix Surprised by Download Use Among Subs Week Ended Dec. 9 Top Sellers/Blu-ray » 19 4 Disney Suing Redbox For Selling Week Ended Dec. 2 Top Sellers/Blu-ray » 20 YEAR IN REVIEW » 18 Digital Movie Codes Week Ended Nov. 25 Top Sellers/Blu-ray » 20 In 2017, Home Entertainment’s Mantra was ‘Keep on Swimming’ 5 Vudu Pushing Digital Movie Week Ended Nov. 18 Top Sellers/Blu-ray » 20 As platforms and distribution channels proliferated, studios tried to maximize digital as well Cards at Walmart for the Holidays Digital Sales Snapshot » 21 as disc sales. Source: Google Analytics
6 FINAL CUT December 2017 » www.HomeMediaMagazine.com WHAT’S HOT IN HOME ENTERTAINMENT Disney Acquiring Fox Studio Assets for $52.4 Billion BY ERIK GRUENWEDEL Studios. Disney would also acquire 2012. Fox had retained the rights syndication giant Endemol Shine “The acquisition of this stellar T he Walt Disney Co. Dec. 14 James Cameron’s “Avatar” fran- to the 1977 original Star Wars in Group. collection of businesses from Fox announced it is acquiring chise as well, having already part- perpetuity. Disney would become the ma- reflects the increasing consumer 21st Century Fox’s film and nered with the filmmaker to cre- TV units include 20th Century jority owner of Hulu and Hulu demand for a rich diversity of en- television studios, cable enter- ate “Avatar”- Fox Televi- TV. The transaction also includes tertainment experiences that are tainment networks and interna- themed at- sion, FX Pro- international properties such as more compelling, accessible and tional TV businesses in a massive tractions at ductions and Star India and Fox’s 39% owner- convenient than ever before,” Iger deal worth $52.4 billion in stock. the Walt Dis- Fox21. ship of satellite TV operator Sky said in a statement. Under the deal, Disney will ney World Disney will in Europe. If Fox completes its The transaction must clear reg- acquire 20th Century Fox (in- Resort in also acquire acquisition of Sky prior to the ulatory hurdles — not a sure thing cluding 20th Century Fox Home Florida. FX Networks, closing of the transaction, Disney considering the Department of Entertainment), Fox Searchlight In addition, National would assume 100% ownership of Justice’s recently filed lawsuit to Pictures and Fox 2000. Disney for Geographic Sky, including outstanding debt. block the AT&T/Time Warner With the deal, movie rights to the first time Partners, Fox Disney CEO Bob Iger will re- merger. Marvel Comics properties such would have Sports Re- main in his position, including Fox corporate retains control of as the “X-Men,” “Fantastic Four” full distribution rights over the gional Networks and Fox Net- chairman of the board, through Fox Broadcasting network and and “Deadpool” franchises will “Star Wars” films since its $4 bil- works Group International, in 2021. Iger was supposed to retire stations, Fox News, Fox Business, return to Disney-owned Marvel lion acquisition of Lucasfilm in addition to Hulu, Tata Sky and for the third time in July 2019. FS1, FS2 and Big Ten Network. DOJ Challenges AT&T/Time Warner Merger in Court PEOPLE – COMPILED BY HOME MEDIA STAFF BY ERIK GRUENWEDEL said in a statement. online video distributors and would affordable, innovative, interactive T he United States Department of A trial date of March 19 has have the ability to charge more and mobile, and called the lawsuit ■ DISH NAMES SLING TV’S ERIK Justice Nov. 20 filed an antitrust been set by Judge Richard for Time Warner’s popular “a radical and inexplicable depar- CARLSON NEW CORPORATE CEO lawsuit to block AT&T’s proposed Leon — who was appoint- networks and take other ture from decades of antitrust prec- Dish Network Dec. 5 announced $84.5 billion acquisition of Time Warner. ed to the U.S. District Court actions to discourage fu- edent.” the promotion of COO Erik Carlson “It would mean higher monthly for the District of Columbia ture competitors from en- “We see no legitimate reason for to CEO, replacing Charlie Ergen, who television bills and fewer of the new, in 2001 by President tering the market. our merger to be treated differently,” remains chairman of the board while emerging innovative options that George W. Bush. David McAtee, McAtee said. focusing on the satellite operator’s consumers are beginning to enjoy,” The government senior EVP and Time Warner would reportedly re- wireless initiatives. assistant attorney general Makan Del- contends the combined company could general counsel at AT&T, said the ceive a $500 million fee from AT&T if A 20-year executive with Dish, rahim of the DOJ’s antitrust division impede “disruptive competition” from merger would make television more the merger isn’t finalized by April 22. Carlson most recently headed the company’s online television service, Sling TV, following the departure of founder/CEO Roger Lynch. FCC Repeals Net Neutrality Regulations After Contentious Debate Carlson leads a revamped corpo- rate structure, with Warren Schlicht- BY JOHN LATCHEM or state regulation.” other concerns. urged Pai to delay the motion. The ing upped to EVP and group presi- T he Federal Communications Pai contends the Internet has Netflix CCO Ted Sarandos said regu- vote actually was put on hold for dent of Sling TV. Schlichting was Commission Dec. 14 repealed grown into a global information and latory changes would largely hurt the about 10 minutes, when the meeting formerly EVP of marketing, program- Obama-era net neutrality provi- e-commerce superhighway because SVOD pioneer’s upstart competitors. room was evacuated due to security ming and media sales. He retains sions by a party-line 3-2 vote, with of minimal regulation. Just prior to the vote, some lawmakers concerns. oversight of the Dish media sales and chairman Ajit Pai and the two other “The government shouldn’t be in programming departments. Republican members supporting the the business of picking winners and John Swieringa succeeds Carlson rollback. losers in the Internet economy,” Pai as COO, overseeing all operational The FCC in 2015, while controlled said before the vote. “We should have Steve Beeks Leaving Lionsgate departments supporting Dish Net- by Democrats, voted to regulate the a level playing field and let consumers work, Sling TV and wireless groups, Internet as a utility under Title II of the decide who prevails.” BY ERIK GRUENWEDEL joined Lionsgate in 2003 with the ac- including customer support centers, Communications Act of 1934. Pai’s efforts had been met with vo- PEOPLE Lionsgate co-COO and mo- quisition of Artisan Entertainment, the in-home installation workforce Pai’s plan restores the Internet to cal opposition in the months lead- tion picture group co-president where he had been a senior execu- and the IT department. pre-regulatory days — a time he said ing up to the vote. Advocates of the Steve Beeks, tive since 1998. Chief technology officer Vivek harbored light regulation (under Title I 2015 policy, which included myriad who oversees He was one of the architects of Lion- Khemka joins Carlson’s leadership of the Communications Act). technology companies such as Net- the studio’s sgate’s $1 billion annual home enter- team, supporting Dish Network, Sling In a recent speech, Pai pointed to flix, Hollywood activists and civil lib- home entertain- tainment operation, and he helped TV and the wireless business. Khem- the Telecommunications Act of 1996, erty groups, claimed giving Internet ment division, is grow the company’s 16,000-title film ka’s team is responsible for technol- which he said was intended “to pre- Service Providers unfettered control leaving the com- and television library. ogy strategy, product management, serve the vibrant and competitive over pricing and bandwidth speed pany at the end Most recently, Beeks spearheaded engineering, product development, free market that presently exists for would hurt consumers and smaller Steve Beeks of 2017. business and strategic initiatives for supply chain management, broadcast the Internet … unfettered by federal over-the-top video services, among Beeks formally the motion picture group. operations and OTT delivery.
www.HomeMediaMagazine.com « December 2017 FINAL CUT 7 Redbox Launches Digital Service SHORT TAKES – COMPILED BY HOME MEDIA STAFF BY STEPHANIE PRANGE number of titles, including more catalog and TV. ■ Q3 HOME ENTERTAINMENT ■ WALMART CHANGING LEGAL NAME DIGITAL Rental-kiosk company Redbox Dec. 13 rolled “We’ve got 700 slots, about 150 to 200 titles that SPENDING UP 3%, PER DEG Underscoring its increased focus on out Redbox on Demand in public beta. The service, we offer through our kiosk at any one point,” he The latest report from DEG: The digital retail, Walmart Feb. 1 will drop which CEO Galen Smith said complements its exist- said. “Obviously, digitally you don’t have those Digital Entertainment Group on con- “Stores” from its legal Wal-Mart Stores ing physical-disc rental kiosks, allows consumers to same size constraints.” sumer home entertainment spending Inc. name, changing it to Walmart Inc. digitally purchase or rent movies and TV shows. Pric- Smith downplayed competition from subscription indicates a 2.85% uptick in the third ing for new-release video-on-demand rentals starts as streaming services such as Netflix and Amazon, not- quarter compared with the same pe- ■ BEST BUY Q3 SALES REBOUND low as $3.99 for 48 hours, with elec- ing that the transactional service gets riod a year ago, as well as a 2.75% Best Buy reported same-store do- tronic sellthrough transactions as low new-release movies much sooner. increase in the first nine months of the mestic entertainment sales increased as $9.99. Catalog VOD starts at $1.99. The announcement comes on the year. Electronic sellthrough was up 7% 4.1% in the quarter ended Oct. 28. This The move employs a different heels of a Nov. 30 lawsuit filed against in the third quarter and subscription compared with a 9.4% decline in the strategy from the Redbox-Verizon Redbox by The Walt Disney Co. over streaming was up 17.3%. previous-year period. joint venture that shuttered in 2014. claims the kiosk vendor is illegally sell- “This is focused on transactional ing digital codes to the studio’s films. ■ DIRECTV NOW REACHES 1M SUBS ■ OCTOBER GAME SALES DOWN 11% video-on-demand and electronic Redbox in October quietly began sell- DirecTV Now, AT&T’s standalone on- Total video game spending in sellthrough, whereas the other prod- ing the codes — typically included line television service priced from $35 October dropped 11% to $825 million, uct previously was a subscription in Blu-ray Disc releases — through monthly, has reached 1 million subscrib- from $932 million in the previous-year product,” said CEO Galen Smith. “It was a joint its website. The suit, filed in U.S. District Court in ers — less than a year after launching. period, according to The NPD Group. venture, and we are doing this on our own. It’s a natu- Los Angeles, alleges copyright infringement, breach Gains in hardware spending (10%) to ral extension and evolution of the Redbox business.” of contract, false advertising and unfair competition, ■ PRIME APP ON APPLE TV $238 million were offset by declines in Redbox on Demand is available on the Red- and seeks $150,000 in damages per statutory award, Amazon Prime Video can now be software and accessories. box website, Android and iOS-enabled devices, according to the complaint. officially viewed on Apple TV via a Chromecast, LG and Samsung smart TVs, and Redbox on Demand includes content from War- branded app. ■ GAMESTOP Q3 PROFIT UP 17% Roku. More devices will be added throughout the ner, Paramount, Lionsgate, Sony, Fox and Universal Strong demand for collectibles and beta, according to the company. — not Disney. It also does not yet support Movies ■ AMAZON INKS AMC ABROAD new video games contributed to Redbox is leveraging its wide consumer base to Anywhere, the digital locker service led by Disney. Amazon Prime Video has secured GameStop reporting third-quarter net launch the digital service. As far as the physical disc rental kiosk business, foreign rights to original series from income of $59.4 million, up almost “We’ve got over 90 million touchpoints today — 44 Redbox continues to expand. The company added AMC Studios — the proprietary pro- 17% from income of $50 million dur- million email addresses, 35 million app downloads more than 1,700 kiosks in 2017 and is looking to duction unit of AMC Networks. ing the previous-year period. Revenue between iOS and android, 8 million text club, 23 adding more in 2018. increased 1.5% to $1.98 billion. million people in our loyalty program — so that is a “I think it’s been a fantastic year for us overall,” Smith ■ X1 ADDS EPIX, IHEARTRADIO really broad and massive reach,” Smith noted. said. “You know we used to have very long windows Epix has announced an agreement ■ FYE CHAIN WIDENS Q3 LOSSES The digital service also allows Redbox to offer a greater and those have shortened with a couple of the players.” with Comcast Cable affording the Trans World Entertainment’s For Your cabler’s X1 subscribers in early 2018 Entertainment (fye) retail unit posted an access to the multichannel dis- operating loss of $7.8 million in the quar- tribution platform. Comcast also ter ended Oct. 28, up 56% from a loss Black Friday Store Traffic Declines; Sales, E-commerce Surge added music streaming platform “IHeartRadio” to its X1 set-top box. of $5 million during the previous-year period. Revenue declined almost 17% to BY ERIK GRUENWEDEL of $862 on holiday purchases this year, compared $52.1 million, from $62.4 million. RETAIL The number of consumers cutting short with $752 in 2016. Yet, Dec. 22 — not Nov. 24 ■ SLING TV ADDS CHANNELS Thanksgiving dinner to shop and frequent stores (Black Friday) — ranked as the top-shopping day of Sling TV increased its premium chan- ■ U.K. FIRM BUYING REGAL the day after on Black Friday dropped slightly, with the holiday season, according to survey respondents. nel selections with add-on options CINEMAS RetailNext and ShopperTrack reporting Black Friday CuriosityStream, UP Faith & Family, Regal Cinemas, the No. 2 theatrical store-traffic declines of 4% and 1.6%, respectively. and Pantaya. Sling TV has also expand- chain in the U.S., has entered into a $3.6 Online shopping over the retail holiday period surged ed its Spanish-language offerings with billion definitive merger agreement — up more than 18%, according to Adobe Systems. The nation’s largest video game retailer, GameStop, OBITUARY the regional “Centroamérica” package. with London-based Cineworld Group. ■ VERIZON, NFL INK $2B DEAL ■ CINEMARK BOWS TICKET SERVICE was open on Thanksgiving for the first time. Walmart, Best Buy and Amazon again drove high-profile price EAA’S HEATHER HINKEL PASSES AWAY Verizon signed a five-year agreement Cinemark, the nation’s third-largest discounting across product categories — including BY STEPHANIE PRANGE reportedly worth more than $2 billion theatrical chain, has launched a pro- H home entertainment (discounted DVD/Blu-ray Disc eather Hinkel, executive director of the Entertain- for exclusive mobile rights to NFL games. prietary subscription ticket service, movies), but with measured expectations. ment AIDS Alliance, passed away Dec. 1 from com- dubbed Cinemark Movie Club, which “Is [Black Friday] the mayhem that it might have plications due to breast cancer. She was 58. ■ CINEDIGM CLOSES CHINESE DEAL offers access to one 2D movie ticket been eight or 10 years ago? I think that world is gone,” “Heather has been a steady force and the heart of this Cinedigm formally closed a $30 mil- per month, in addition to 20% off con- Walmart CEO Greg Foran told The Wall Street Journal. organization for nearly two decades,” lion investment from China-based Bison cessions, for $8.99 per month. Michael Pachter, media analyst with Wedbush wrote EAA president Sue Procko in Capital, which now owns a majority of Securities in Los Angeles, said Best Buy had a suc- an email to members. “She worked the home entertainment distributor‘s ■ SIMPLIFIED USER EXPERIENCE cessful Black Friday — again driven by big-screen diligently through the years to raise outstanding common stock. KEY TO ENERGIZING DEVICE SALES TV sales. funds to help those affected by HIV/ With sales of smart-TVs and stream- “According to our online checks, Best Buy offered AIDS.” ■ NETFLIX LAUNCHES IN GREECE ing media players apparently soften- better pricing overall than Amazon between Thanks- Hinkel was honored at the EAA’s Wine, Netflix Dec. 11 launched local-lan- ing, consumer electronics manufac- giving and Sunday, Nov. 26. While pricing remained Heather Hinkel Wisdom and Vision awards June 22 for guage service in Greece featuring con- turers are simplifying the user experi- roughly consistent on both sites between Thanksgiv- her long service to the organization. tent and licensed fare (70% dubbed in ence to energize sales, according to ing and Saturday, Nov. 25, pricing increased modestly She is survived by her mother, Margaret Hinkel, her sister, Greek) priced at €7.99 ($9.37) monthly. new data from Parks Associates. on Nov. 26,” Pachter wrote in a Nov. 27 note. Dorin Adams, and her brother, David Hinkel, as well as sev- Content is also available in 4K Ultra HD. Gallup found consumers plan to spend an average eral nieces and nephews. All reside in Reading, Pa. – For More, Visit HomeMediaMagazine.com
8 NEWS December 2017 » www.HomeMediaMagazine.com ‘Variety’ Hall of Fame Honors Home Entertainment Industry Leaders for 37th Year BY STEPHANIE PRANGE Leadership Award. other side of the camera,” Wuth- people connect and bring joy, and T he 37th Variety Press Play “You know, sometimes the good rich quipped in accepting the award that’s pretty cool.” Home Entertainment & guys finish first, and I’m thrilled and hailing Sanders as a mentor. Chris Meledandri, producer and Digital Hall of Fame took that this is happening to Jim,” said “I’m humbled by those who’ve CEO of Illumination Entertain- place Dec. 5 at the Montage in Ron Sanders, president of Warner come before,” Wuthrich said, not- ment, which created the “Despi- Beverly Hills, Calif., with the tra- Bros. worldwide home entertain- ing past winners including Warren cable Me” franchise, among other ditional sendups and sentiment ment distribution, who presented Lieberfarb, “the father of DVD.” family content, accepted his award about honorees. and Walmart online service Vudu the award to Wuthrich. “When I first came to this busi- by thanking Universal Studios and The event benefitted the charity were inducted into the Hall of Fame. “He’s the kind of superhero that ness all those years ago, I thought its home entertainment team and City Year. Fox innovation Lab was honored we love having at Warner Bros. I’d be here two years and leave, but plugging the fact that Dec. 5 was Chris Meledandri, producer and with the Innovation Award, and and that we need for this industry,” now I’ve been here 19 years, and I the physical street date for Despi- CEO of Illumination Entertain- Eric Berger, EVP of digital for Sony added Sanders, teeing up a parody love this business,” he said. “It has cable Me 3. ment; Jim Wuthrich, president of Pictures Television Networks, and of heroes from Justice League with it all — technology, entertainment “In volatile times like these, the Americas and global strategy for GM of Crackle, picked up the Wuthrich’s face imposed on them. — and it’s ever-changing. And when it’s easy to lose one’s way, Warner Bros. Home Entertainment; Deloitte Media & Entertainment “Now you know why I’m on the the stories we deliver inspire, help I find it very humbling to remind (L-R): Warner’s Ron Sanders presents Jim Wuthrich with his Hall (L-R): Fox’s Hanno Basse, Samsung’s Sang Kim, DEG’s Amy Jo Smith, Ericsson’s Mark Russell and Fox’s Danny Kaye celebrated the of Fame award. Innovation Award for Fox Innovation Lab. Photo courtesy of Variety/REX/Shutterstock Photo courtesy of Variety/REX/Shutterstock (L-R): Jeremy Verba, VP and GM of Vudu, video games and (L-R): Deloitte’s Kevin Westcott and Deloitte Media & Entertain- media for Walmart.com, with Disney’s Janice Marinelli. Verba (L-R): Hall of Fame honoree Chris Meledandri with Variety ment Leadership Award winner Eric Berger. accepted the Hall of Fame award for Vudu. co-editor in chief Claudia Eller Photo courtesy of Variety/REX/Shutterstock Photo courtesy of Variety/REX/Shutterstock Photo courtesy of Variety/REX/Shutterstock
www.HomeMediaMagazine.com « December 2017 NEWS 9 (L-R): Disney’s Liz Smith, Paramount’s Brenda Ciccone and Fox’s James Finn. (L-R): Warner’s Jeff Brown, Home Media Magazine’s Thomas K. Arnold, and honoree Jim Wuthrich of Warner Bros. myself about the power that we all sight of the potential of our impact on stretching the bound- have to positively affect people’s films to spread joy, humor and aries of bringing content to movie lives,” he said. hope, even when people are go- lovers,” she said, noting its work He related the story of Peter, a ing through unimaginable hard- on virtual reality and high dynamic young boy fighting liver cancer, ships,” he said. range, among other technologies. whose mom wrote the producer to In presenting the award to the Danny Kaye, EVP and manag- tell him how much the boy liked Fox innovation Lab, Amy Jo ing director of the Lab, said it was the “Despicable Me” movies and Smith, president of DEG: The created “to help us redefine the how they made him smile. She Digital Entertainment Group next-generation premium con- asked that a minion be named and past Hall of Fame honoree, sumer entertainment experience.” after her son. hailed the “brain trust” at Fox He and Basse accepted the “In Despicable Me 3, the minion that created it in 2014, including award on behalf of the studio, Peter made his debut,” Meledan- Mike Dunn, Hanno Basse and with representatives of Lab part- dri said. Danny Kaye. ners Samsung and Ericsson. “It is vital for us to never lose “The Lab has really had a real Janice Marinelli, president of Disney/ABC home Entertain- ment and television distribution, hailed Hall of Fame inductee Vudu, a key player in the cloud- based digital locker service Mov- ies Anywhere. “At Disney, we like to partner with forward-looking retailers, partners who share our commit- (L-R): DEG’s John Powers and Paramount’s Steve Siskind. ment to excellence,” Marinelli said. “Vudu is a terrific example of that type of partner.” Jeremy Verba, VP and GM of Vudu, video games and media at Walmart.com, accepted the award, saying, “Innovation is a (L-R): Fandango’s Adam Rockmore, Fox Innovation Lab’s Danny Kaye and team sport, we like to say at Vudu. Fandango’s Cameron Douglas. It takes great partners. We have those in our studio partners. We appreciate the trust that you put in us and that you ask of us.” “All of us here share a common vision for a world to be entertained without boundaries,” Berger said in accepting the Deloitte Media & Entertainment Leadership Award. “It’s a time of real change in the landscape, and to achieve that vision requires a dual focus on innovation, both in terms of storytelling and technology.” Leadership requires the “facility to embrace change as a constant variable” and finding out “how (L-R): Warner’s Jay Reinbold, Home Media Magazine’s Stephanie Prange and to reinvent order from chaos,” (L-R): Warner’s Ron Sanders and Hall of Fame honoree Jim Wuthrich. comScore’s Chris Roberts. he said. Photo courtesy of Variety/REX/Shutterstock
THE ULTIMATE MOVIE-WATCHING EXPERIENCE 4X SHARPER THAN HD HDR (HIGH DYNAMIC RANGE) BRILLIANT BRIGHTS, DEEPEST DARKS WIDER COLOR SPECTRUM FOR MORE LIFELIKE COLORS IMMERSIVE AUDIO FOR A MULTI-DIMENSIONAL SOUND EXPERIENCE AVAILABLE 1/2/18 AVAILABLE NOW AVAILABLE NOW AVAILABLE NOW Advertising and promotional materials are subject to change without notice. Redemption code subject to expiration. Visit NBCUcodes.com for details. Internet Connection Required. Download Capability Varies by Device. TRANSFER OR RESALE OF REDEMPTION CODE PROHIBITED. Movies Anywhere is open to U.S. residents age 13+. Visit MoviesAnywhere.com for complete details and Terms and Conditions. Blu-ray™ Disc, Blu-ray™ and Ultra HD Blu-ray™ word marks and logos and the 4K Ultra HD™ logo are trademarks of the Blu-ray Disc Association. Ultra HD Premium™ logo is a trademark of UHD Alliance, Inc. USHEretail.com © 2017 Universal Studios. All Rights Reserved.
www.HomeMediaMagazine.com « December 2017 11 Hollywood innovates BY ERIK GRUENWEDEL AND STEPHANIE PRANGE A s technology advances, new formats and distribu- innovation and experimentation have become the tion channels continue to proliferate. Even the order of the day. In addition to supporting the new, very definition of content has changed, with mov- enhanced 4K Ultra HD format with high dynamic ies and TV shows forced to make room for webisodes, range, studios are delving into virtual reality — the Snapchats and Facebook Live streams. YouTubers are use of computer technology to create a simulated mobbed like ‘A’-list movie stars; people are consuming, environment — and augmented reality — in which and sharing, content on their phones, on their iPads, and an enhanced version of reality is created by the use of through their PlayStations. technology to add digital information on an image of The home entertainment industry, rocked by the the physical world. Internet and disrupted by Netflix, hasn’t sat idly by Here’s a look at some of the highlights of 2017 — and as the world around it changes. Far from it — indeed, a glimpse of what is to come in 2018 and beyond.
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14 December 2017 » www.HomeMediaMagazine.com for consumers. It elevates the movie pur- There have been several improvements in vision of our filmmakers beyond the theater.” chasing, collecting and viewing experience the service since launch. It’s a picture that more clearly adjusts to and is simple and easy to use,” said Movies “Movies Anywhere was built with con- the consumers’ TV. Anywhere GM Karin Gilford. sumers in mind to add more value to their “Scene by scene and even frame by frame, It’s an interface that will ultimately make movie purchases,” Gilford said. “As such, that movie is being adjusted to be opti- digital movie collection seamless, said the our first priority is responding to custom- mized to that particular TV,” Kaye said. executive, who formerly worked at Com- er feedback about the product. We have The Fox Innovation Lab serves as a research cast Interactive Media and Yahoo! The amazing movie fans in Movies Anywhere hub, demonstrating and testing technologies launch comes after several fits and starts, with large collections. We heard loud and with consumers throughout the development including the stalled UltraViolet digital clear that they want more control over their process to obtain qualitative data and hands- MOVIES ANYWHERE — A WATERSHED locker service and Disney’s launch of its library. We answered with improved sort on feedback in order to bring innovative and MOMENT FOR DIGITAL MOVIE SALES own proprietary service, Disney Movies capabilities across platforms and we will premium products to market. In what observers are calling a major break- Anywhere. Observers say the studios continue to look for ways to help consum- In addition to premium viewing experi- through in getting consumers to buy movies signed up for Disney’s model because the ers manage their collections.” ences for traditional entertainment, the digitally, five of the six major studios — and technology is superior. Consumers have responded well to the division is also working on new forms of four key retailers — joined forces in late 2017 Consumers can download a free Movies interface, she said. entertainment, such as virtual, augmented for the launch of Movies Anywhere. Anywhere app, create an account and link “We are seeing strong engagement with and mixed reality. Its work on virtual The cloud-based service, an outgrowth of to any of the four digital retailers. The ser- users spending time on the Explore page, Walt Disney’s Disney Movies Anywhere, vice will automatically populate consumers’ interacting with the seasonal, franchise and lets people store and access their purchased digital libraries from any of the participating many of collections we showcase in that movies across a wide variety of platforms, retailers on Movies Anywhere. Consumers area,” she said. from TVs to iPhones, for immediate view- can immediately stream or download any Overall, the service is a hit with consum- ing wherever and whenever they want film from their Movies Anywhere library ers, she said. to — regardless of whether the movies are “The magic really happens when you link “The consumer response to Movies acquired digitally or on disc. Consumers to retailer accounts because you get to see Anywhere has been incredible, and the can do so through Movies Anywhere apps that whole collection come together,” Gil- feedback and engagement with the app is or through the website. ford said. “There’s that sort of aha moment strong as consumers experience the ease “It’s a seamless experience, designed with that happens when all of the titles that you of bringing digital movie collections to- the consumer in mind,” said one veteran bought from one of our five studios on any of gether,” she said. “The strength of the industry observer. “Enter the code and the our four digital retailers all come together.” studios and digital retailers that have come reality resulted in Fox’s groundbreaking movie pops up on your phone, on your Consumers can also buy new digital mov- together at launch is unprecedented, and first commercial VR product, The Martian, TV — everywhere your account is linked.” ies on the app through Movies Anywhere consumers are recognizing this.” a roughly 20-minute interactive experience “Movies Anywhere is just the latest ex- retailers and redeem codes from DVDs or that put viewers in the world of the feature ample of studios and distributors working Blu-ray Discs they have purchased to gain film. That virtual reality experimentation together to provide more value to the immediate access to more digital movies. STUDIO STANDOUTS — A LOOK AT WHAT’S helped result in this year’s creation of an consumer and setting a new bar for digital Starting next year, physical discs will fea- UP THE MAJORS’ SLEEVES entire new business unit at the studio, movie ownership,” said Michael Bonner, ture Movies Anywhere branding. 20th Century Fox FoxNext, which not only works on VR, but EVP of digital distribution for Universal Movies Anywhere allows consumers to The Fox Innovation Lab, 21st Century video games and theme parks. Pictures Home Entertainment. have up to five subaccounts, in addition Fox’s research and development center, Fox Innovation Lab now also has its eye “Movies Anywhere, [like] Premium to the master account. Subaccounts can was established to drive the advancement on incorporating artificial intelligence, or VOD … will shake up the basic tenets of have personalized recommendations and of groundbreaking technology and new machine learning, both in the entertain- distribution and how and when consumers restrictions, allowing the master account consumer experiences across all platforms ment production and distribution process get content,” noted Mark Fisher, president holder to ban access to ‘R’-rated films for and distribution models. and in the content itself. and CEO of the Entertainment Merchants a child, for instance. Purchases may only The Lab works across all 21st Century “You could be watching a sporting event Association. be made from the master account. Viewers Fox film and television divisions as well and you could have a conversation with Movies Anywhere launched on Oct. 11, can start streaming a movie on one device as key external partners on advancements your television about stats depending on a 2017, with support from Disney (includ- and finish it on another. Two viewers can in next-generation technologies, includ- sport or a player,” Kaye noted. “You could ing Pixar, Marvel Studios and Lucasfilm), watch the same title on different devices at ing high dynamic range technology; 5G ask questions, just like people talk to Alexa Sony Pictures, 20th Century Fox, Univer- one time, and up to four viewers can stream and mobile content delivery; virtual, aug- today or to Google Home.” sal Pictures and Warner Bros. Movies are different content on different devices at mented, and mixed reality content; and redeemed through digital retailers Amazon the same time. Consumers can access their hardware, machine learning, artificial in- Warner Bros. Video, Google Play, iTunes and Vudu library on Amazon Fire devices, Android telligence and advanced data analytics. Warner Bros. Home Entertainment’s in- (owned by Walmart). mobile and tablet devices, Android TV, Fox’s collaboration with leading technology novation efforts are focused on developing Movies Anywhere Apple TV, Chromecast, iPhone, iPad, partners to drive industry innovation is seen a better picture and sound to boost home is a Disney-owned iPod Touch, the Roku platform and popu- in its latest work with HDR10+ to improve entertainment sales. entity that oper- lar Web browsers. the home entertainment viewing experience Jim Wuthrich, president of the Americas ates indepen- The service launched with a five-free- for audiences. HDR10+ is an open, royalty and global strategy, notes that the physical dently with input movies offer has a comprehensive market- free technological step forward that optimiz- disc still drives the business and is also the from an advisory ing strategy. es picture quality for next-generation displays best, most reliable delivery system for 4K committee with “We have a robust and year-round paid through the use of dynamic metadata, which Ultra HD with high dynamic range, the members from media strategy that leans heavily into mo- more precisely adjusts content to the capabili- new format that provides a picture with each of the par- bile user and Web acquisition tactics, and ties of different TVs. greater contrast and more vivid colors. ticipating studios are engaging consumers with ongoing and Danny Kaye, EVP at 20th Century Fox “4K UHD HDR is a superior consumer “Movies Anywhere targeted email, push, and in-app marketing and managing director of the Fox Innova- experience on physical,” he said. “All the enables movie fans to tactics,” Gilford said. “And last but not tion Lab, added that “working in partner- bits are on the disc. Getting them from sync their collection least, we have the unprecedented support ship with Panasonic and Samsung through the player to the television is a guaranteed from the five studios across from our studio partners who are helping us the Fox Innovation Lab, we are able to experience. When you talk about 4K UHD retailers, devices, and plat- build the Movies Anywhere brand through bring new platforms like HDR10+ to the HDR in the digital space there’s a lot of forms. It’s a game changer their title marketing efforts.” market that more accurately realize the dependencies that we just don’t have control
www.HomeMediaMagazine.com « December 2017 15 over, so you may have the broadband speed distributor — led by Jim Packer and Ron to get it into your house, but once it gets into Schwartz — with nearly 15% market share your house, and it’s got to go across your and about $1 billion in annual revenue driven own network, those bits might get lost, so by a 16,000-title film and television library. we can’t guarantee that same experience that Through the fiscal half-year (ended Sept. you can on physical. 30), home entertainment movie revenue “The other thing you just can’t get away reached $400 million, compared with $100 from is the size of these files. There’s so million a year earlier. TV content retail much information that’s packed in these sales reached $6.5 million, compared with 4K experiences that it takes a long time and $10 million in the previous-year period. a lot of bandwidth in order to deliver that Beeks has said home entertainment rev- content. Physical solves those problems, enue helps underwrite a “substantial” por- and it’s a very efficient way of delivering all tion of company overhead costs, which of the information.” include upstart over-the-top video services The format is already gaining traction. such as Kevin Hart’s Laugh Out Loud, “Consumers are very excited about 4K Spanish-language Pantaya, Tribeca Short- UHD television sets and they’ve been buy- list and Comic-Con HQ. ing them in record numbers,” Wuthrich “Over the past several years, we’ve leaned said. “People want to watch this content heavily into the library business. Even and utilize those television sets.” before all these [distribution] platforms Other new technologies that the studio is began to proliferate, we felt we could see it ‘Ghostbusters’ director Ivan Reitman and star Dan Aykroyd with fans at the launch of Ghostbusters VR — Now keen on are virtual, augmented and mixed coming. All the other studios were slacking Hiring, Act 1: Firehouse at the Sony Pictures lot March 20. reality. The studio released a VR experience their interest [in library],” Beeks said. for the hit horror film It and plans a home Schwartz believes 4K and high dynamic VR experience for Justice League as well. range can resonate with consumers seek- Eddie Cunningham, president of UPHE. launch of Movies Anywhere, and even more ing superior visual and audio formats in The executive contends discs still account excited about the roadmap ahead,” said Mi- the home. The distributor last year bowed for the lion’s share of home entertainment chael Bonner, EVP of digital distribution. initial 4K releases around Sicario, The Last spending, as evidenced by the more than Bonner praised the Movie Anywhere Witch Hunter, Ender’s Game and The Ex- 465 million physical transactions recorded app’s “rich features and the freedom, flex- pendables 3. domestically in 2016. ibility and utility.” “We are really bullish and excited about “4K UHD is reinvigorating interest in the “The format remains exceptionally vi- “Universal will absolutely be complement- the virtual, augmented, mixed reality mar- high-definition platform and … strength- brant and viable,” he said earlier this year. ing Movie Anywhere marketing initiatives ketplace,” he said. “It’s a nascent market- ening HD packaged-media sales,” said The studio bowed its first 4K Ultra HD in 2018 as we work toward driving broad place, but we think that this is going to be a Schwartz. Blu-ray Disc release in April 2016 with consumer awareness and adoption,” he said. very important part of the home entertain- He said early results suggested about Jason Bourne. Since then the number of ment/entertainment slate. And we think triple the sales of comparable Blu-ray Discs 4K UHD titles in market has more than Paramount Pictures home entertainment is a natural home for — the industry’s last platform launch. doubled, with as many as 300 titles avail- In a year of change at corporate par- virtual, augmented, mixed reality and the “With our deep library and rich content able industry-wide by the end of 2017. ent Viacom, subsidiary Paramount Home reason is most people are going to experi- crossing multiple genres, we feel we can Cunningham said 4K UHD Blu-ray with Media Distribution buttressed traditional ence it in their homes.” reach consumers many different ways. And high dynamic range raised the bar in home physical media with expanded digital, 4K He notes the experiences with It and we see the momentum continuing as the movie watching. As the 4K ecosystem con- and virtual reality campaigns. Justice League in virtual reality are very installed base of 4K televisions continues tinues to gain traction, Cunningham said For the year, home entertainment rev- immersive. to grow,” Schwartz said. Universal remains committed to delivering enue from disc and digital retail showed re- “Basically, it allows the consumer to go Lionsgate continues to scout opportuni- more compelling 4K Ultra HD offerings, silience, improving 8% from 2016, reflect- into these worlds that they’ve seen on the ties to enhance content discovery, includ- including catalog gems E.T. — The Extra- ing ongoing Teenage Mutant Ninja Turtles: screen and get closer and interact in that ing virtual reality. Terrestrial and Apollo 13 in September and Out of the Shadows carryover revenue, as environment,” he said. Over the summer it partnered with Unit- October, respectively. well as strong catalog sales. Domestic and As far as pricing for these experiences, ed Technologies to develop what it claimed “We can expect to see that number international home entertainment revenue Wuthrich said the industry is in the ex- was the first virtual reality movie ad for the [of 4K BD titles] to expand considerably increased 11% and 3%, respectively. perimental stage. October theatrical reboot of the lucrative in 2018, as content companies continue Paramount joined Lionsgate, Sony Pic- “We’re experimenting from 99 cents all “Jigsaw” horror franchise. to release new and catalog titles in the tures Home Entertainment and Warner the way up to the price of more of a tra- “As big believers in the power of immer- premium format,” Cunningham said. “As Bros. Home Entertainment in incorporat- ditional game,” he said. “Having said that, sive storytelling, we are incredibly excited well, 4K movies, TVs and players are sell- ing Dolby Vision and again, we think there’s a real opportunity to bring Jigsaw into the world of VR,” said ing units in record numbers. There is a clear Dolby Atmos in here and we’re going to continue to figure David Edwards, SVP of digital marketing. groundswell around demand and we are 4K UHD Blu-ray out how you make that an experience con- highly optimistic about the format’s future Disc and Digi- sumers can’t live without.” Universal Pictures prospects. Plan to see Universal increase its tal HD releases Despite a challenging 2017 theatrical overall investment in 4K UHD offerings in featuring high Lionsgate market, Universal Pictures Home Enter- the coming year.” dynamic range. Exiting leader Steve Beeks leaves behind tainment quietly produced on the bottom Indeed, Universal in September joined Dolby main- a studio/distributor successfully tackling line. The studio churned out resilient fis- iTunes in offering 4K UHD digital titles tains its new changing distribution business models cal results while embracing a new digital through the upgraded Apple TV. Apple HD audio and (OTT video, 4K and virtual reality) while distribution business model (Movies Any- TV ranks fourth among streaming media visual technol- sustaining physical media. where) and upping its 4K UHD Blu-ray devices, with more than 21 million users, ogy enhances video A year after acquiring premium TV dis- presence. according to eMarketer. content with life-like tributor Starz, Lionsgate has assimilated “Consumer spend has increased each quar- In October, Universal joined Warner, Dis- qualities. home entertainment unit Starz Distribution ter over prior year, with the growth driven by ney, Sony and Fox in launching the Movies Bob Buchi, president (and Anchor Bay Home Entertainment) to the overall digital business — on both trans- Anywhere cloud-based locker service. of worldwide home me- emerge as the No. 4 home entertainment actional and subscription platforms,” said “We are very pleased thus far with the dia distribution, said he
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