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Hollywood Heads Roll as DVD Sales Plunge

New studio heads place bets on 'branded entertainment'

By Jason Farago,  Newser Staff

Posted Oct 8, 2009 8:44 AM CDT

(Newser) – In previous downturns, the corporate owners of America's movie studios would cut Hollywood some slack. Not anymore: these days, the corporate suites of LA look like the aftermath of a slasher flick, with old hands kicked out at Disney, Universal, MGM, and Paramount. With DVD sales down 25% and easy financing a thing of the past, "there's been more change in the last 18 months than in the preceding 18 years," one exec tells the Los Angeles Times.

As the new blood in Hollywood attempts to ride out the downturn, studios are grinding out more "branded entertainment" like sequels and other easily recognizable names. Adult dramas will decline further, and movie stars who once commanded huge salaries are taking cuts now that they can't guarantee sizable audiences. Instead, expect lots of films based on children's toys: Movies based on Battleship, Legos, Stretch Armstrong, and even the View-Master are in the works.

In past economic downturns, Hollywood earned a reputation for being recession-proof. This time, the industry is showing some cracks in its armor.
In past economic downturns, Hollywood earned a reputation for being recession-proof. This time, the industry is showing some cracks in its armor.   (AP Photo/Paul Sakuma)
Heidi Klum and Seal pose for photographers on the red carpet at the 81st Academy Awards Sunday, Feb. 22, 2009, in the Hollywood section of Los Angeles.
Heidi Klum and Seal pose for photographers on the red carpet at the 81st Academy Awards Sunday, Feb. 22, 2009, in the Hollywood section of Los Angeles.   (AP Photo/Mark J. Terrill)
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COMMENTS
Showing 3 of 12 comments
riffran
Oct 9, 2009 4:00 AM CDT
im sorry sir...lol :)
DickyJoe
Oct 8, 2009 10:21 AM CDT
Online video rental is fine with me. And most films aren't worth owning anyway.
odowd80
Oct 8, 2009 8:10 AM CDT
A lot of people are discouraged from amassing large movie collections with video technology advancing so swiftly. My mom's video collections have been made obsolete many times over: Betamax, VHS, and DVD's may be on the way out. Why build a collection?

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