Universal and Warner Bros. announced on Wednesday that they are entering a joint venture on sales, marketing and distribution of physical home media in North America.
The North American venture will include leadership from both Universal and Warner Bros. and be run by industry veteran Eddie Cunningham. It is expected to be operation in Q1 2021 and will be responsible for Blu-ray, DVD and 4K UHD distribution for up to 10 years. Separately, Universal will handle distribution for WB’s physical media in Germany, Austria, Switzerland and Japan starting in Q3 of 2020 while WB will do the same for Universal’s physical media in the U.K., Italy, Belgium, the Netherlands and Luxembourg.
Under the proposed structure, the studios will continue to operate their digital distribution businesses independently and retain content and consumer marketing for both physical and digital.
The announcement comes amid an ongoing transition in home entertainment from physical media to streaming. According to a report released Tuesday by Digital Entertainment Group, spending in the U.S. on home entertainment in 2019 reached a record $25.2 billion, up 8.4% year over year. However, while physical media sales still make up a good amount of that total at $3.29 billion, that is down 18% year over year while physical media’s total footprint, including rentals, only rises to about $5 billion. Conversely, streaming made up 63% of the home entertainment market.
“As the home entertainment landscape evolves, we are continuously working to deliver the best entertainment range and value to our fans,” read a statement from Sanders, President ofWorldwide Theatrical Distribution & Home Entertainment and EVP of International Business Operations for Warner Bros.
“The physical business is still an important and active category for the industry. This proposed joint venture with Universal gives us the best opportunity to foster innovation in this business, optimize the physical offering and extend the lifespan of the format for our fans and consumers.”
“With market conditions and consumer viewing behaviors continuing to evolve, we wanted a partner who shares in our commitment to deliver the best consumer proposition going forward,” said Peter Levinsohn, President and Chief Distribution Officer, Universal Filmed Entertainment Group. “This proposed JV presents a significant opportunity to continue to work with our retail partners to ensure the format’s strength and sustainability for years to come.”
On the appointment of Eddie Cunningham, Levinsohn said, “For more than two decades Eddie has been an expert in understanding the evolution of the physical home entertainment landscape. He’s been a dynamic leader in shepherding business innovation and operational effectiveness.”
All 21 Movies That Flunked CinemaScore With F Grade, From 'Solaris' to 'The Turning' (Photos)
"The Turning" has been given an emphatic thumbs down by both critics and audiences, becoming the 21st film to receive an F on CinemaScore. But not all films that flunked with audiences received poor reviews from critics. Read on to learn the history of CinemaScore's hall of infamy.
"Eye of the Beholder" (1999) Rotten Tomatoes Score: 9%
Ewan McGregor plays a detective who goes chasing after a serial killer (Ashley Judd).
"Lucky Numbers" (2000) Rotten Tomatoes Score: 22%
Nora Ephron directed this clunker starring John Travolta as a weatherman who tries to cheat the local lottery.
"Lost Souls" (2000) Rotten Tomatoes Score: 7%
Winona Ryder stars as a woman who has survived an exorcism but is convinced that a journalist (Ben Chaplin) will become the Antichrist -- like all journalists.
"Dr. T and the Women" (2000) Rotten Tomatoes Score: 57%
Richard Gere, Helen Hunt and Farrah Fawcett couldn't save "Dr. T and the Women" from a F grade.
"Solaris" (2002) Rotten Tomatoes Score: 66%
Directed by Steven Soderbergh, produced by James Cameron, and starring George Clooney, this adaptation of Stanislaw Lem’s classic sci-fi novel alienated opening night crowds with its deliberate pace, but won over critics like Roger Ebert for its cerebral storytelling.
"Darkness" (2002): Rotten Tomatoes Score: 4%
Released on Christmas Day in the U.S., critics roundly panned the occult European horror import as a nonsensical, poorly edited mess that relied too much on jump scares.
"Fear Dot Com" (2002) Rotten Tomatoes Score: 3%
In this ripoff of "The Ring," people start dying 48 hours after they log onto a mysterious website.
"In the Cut" (2003) Rotten Tomatoes Score: 34%
Meg Ryan was savaged by critics and audiences for playing very much against her girl-next-door image as a writer who embarks on a torrid affair with a cop (Mark Ruffalo).
"Alone in the Dark" (2005) Rotten Tomatoes Score: 1%
Christian Slater plays a paranormal investigator in an adaptation of a videogame that was reviled even more than most big-screen adaptations of videogames.
"Wolf Creek" (2005) Rotten Tomatoes Score: 53%
This viciously violent horror flick, on the other hand, got a hard pan from Ebert for its depiction of women being tortured. But other critics defended the film for its audacity and willingness to truly horrify. This polarizing film has since earned a small cult following among horror buffs.
"Bug" (2006) Rotten Tomatoes Score: 61%
The reception for “Bug” was similar to that of “mother!”, shocking and polarizing audiences at Cannes while winning over critics with the powerful lead performances of Ashley Judd and Michael Shannon. But when it hit theaters, audiences were disturbed in the worst way possible.
"The Wicker Man" (2006) Rotten Tomatoes Score: 15%
The original “Wicker Man” in 1973 is regarded as a cult classic. This one was seen as an unintentional joke by critics, and has gained a cult following as a so-bad-its-good film.
"I Know Who Killed Me" (2007) Rotten Tomatoes Score: 7%
This psychological thriller wasn’t screened in advance for critics, and when reviews did come out, they were not kind to Lindsay Lohan’s performance. “I Know Who Killed Me” went on to win eight Razzies, including Worst Picture.
"Disaster Movie" (2008) Rotten Tomatoes Score: 1%
Kim Kardashian may have been the biggest star in this failed spoof of the disaster-movie genre with possibly the least original movie title ever.
"The Box" (2009) Rotten Tomatoes Score: 45%
James Marsden and Cameron Diaz found a bizarre package in a befuddling brain-twister from "Donnie Darko" director Richard Kelly that filmgoers preferred to keep shut.
"The Devil Inside" (2012) Rotten Tomatoes Score: 6%
2012 brought a trio of CinemaScore flunkies. First was the hated “Devil Inside,” which pretended to be a documentary and ended with a link to a website to encourage viewers to learn more about the film’s paranormal incidents. Audiences chose to log off instead.
"Silent House" (2012) Rotten Tomatoes Score: 41%
Premiering as a midnight screening at Sundance, “Silent House” earned praise from some critics for using the “continuous shot” style that “Birdman” later won Oscars for. But like “The Box” and “Devil Inside,” the film’s payoff soured CinemaScore polls.
"Killing Them Softly" (2012) Rotten Tomatoes Score: 74%
Critics who saw this dark crime thriller at Cannes loved Brad Pitt’s performance and the film’s bleak portrayal of capitalism. But “Killing Them Softly” didn’t just go after capitalism, it went after America, ending with Pitt responding to an Obama speech on TV by declaring “America is not a country; it's just a business.” Americans didn’t appreciate that.
"mother!" (2017) Rotten Tomatoes Score: 68%
Darren Aronofsky's horror film starring Jennifer Lawrence and Javier Bardem sharply divided critics -- but not audiences. The film's shocking, violent climax has left viewers deeply shaken.
"The Grudge" (2020) Rotten Tomatoes Score: 15%
Despite boasting a strong cast that include Andrea Riseborough and John Cho, critics and audiences alike slammed the film for providing nothing beyond the sadistic kills that "The Grudge" has been known for since it was first released in 2002.
"The Turning" (2020) Rotten Tomatoes Score: 15%
This adaptation of the classic gothic horror tale "The Turn of the Screw" featured "Stranger Things" and "The Florida Project" stars Finn Wolfhard and Brooklynn Prince, but their star power didn't stop critics and audiences from souring on this horror film that also featured Steven Spielberg as executive producer.
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Adaptation of the classic gothic horror tale “The Turn of the Screw” is the latest to get lowest marks from longtime audience survey company
"The Turning" has been given an emphatic thumbs down by both critics and audiences, becoming the 21st film to receive an F on CinemaScore. But not all films that flunked with audiences received poor reviews from critics. Read on to learn the history of CinemaScore's hall of infamy.
