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Poor returns push Warner Bros. to close direct-to-video operations
Warner Bros. Entertainment is closing its direct-to-video division in light of ongoing fall in profit in the home video industry, parent company Time Warner announced this week. Founded in 2006, Warner Premiere specialised in the development and production of sequels and spin-offs that could be released directly to DVD and Blu-ray.
With DVD rentals falling 20% last year, the giant Blockbuster gone bankrupt in 2010, and Netflix slowly phasing out its mail-order DVD service to focus on digital streaming, Time Warner decided to pull the plug on its direct to video operation.
The Wrap reports that the conglomerate posted a 10.8% revenue drop to $576 million, though the report came out before the release of highly successfulThe Dark Knight Rises.
Warner Premiere's direct-to-video titles were distributed through Warner Home Video, Warner Bros. Digital Distribution and Warner Bros. Domestic and International Television Distribution. According to the Wrap Warner Premiere employees could be transferred to other divisions within the company.
Story filed 16.08.12
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