Blockbuster, 'Titanic'
s
NEW YORK -- Third-quarter earnings at Viacom here were up sharply, partially because of strong sales of Paramount Home Video's "Titanic" and a turnaround at Blockbuster Entertainment, the company has reported. Although net profit dropped to $138 million, or 34 cents a share, because of the sale of radio stations a year ago, this number exceeded analysts' expectations of 32 cents a share. Earnings, exclusive of the year-ago increase, increased to $157 million for the quarter ended Sept. 30 from $27 million, while sales rose to $4 billion from $3.5 billion.
"Extending its remarkable resurgence, Blockbuster Video recorded an increase in revenues of 21% and posted EBITDA growth of 22% over the same period last year, led by 19% higher domestic same-store sales," said Viacom chairman and chief executive officer Sumner Redstone in a press statement. In addition, he said, "Paramount is on track for the best year in its history." Redstone is on record as saying that Viacom plans to spin off Blockbuster, probably sometime next year.
Companies Start
On-line Video Sales
Three firms have announced plans to begin selling videos on-line this month. They are specialty retailer West Coast Entertainment Corp., Langhorne, Pa., book retailer Barnes & Noble, New York, and Internet service provider America Online, Dulles, Va. On-line book merchant Amazon.com, Seattle, began selling videos on-line last week. In other on-line news, Ingram Entertainment, La Vergne, Tenn., intends to sell its SpeedServe division, which sells books and videos on the Internet, said David Ingram, president.
West Coast Entertainment plans an Internet Web site called "@moviebuff.com" which will complement its regular retail endeavors with movie reviews, Hollywood news and gossip, commentary and coverage of independent films and movies in production. But it will also offer products for sale from the site, including DVDs, VHS titles, accessories and entertainment-related merchandise. Kiosks allowing customers to tap into the Web site will be located in West Coast stores.
Barnes & Noble plans to start selling music and videos from its Web site, barnesandnoble.com, early next year. Analysts said that Barnes & Noble is looking to keep up with Amazon.com, which has started selling music and movies. Barnes & Noble also this month announced plans to purchase the Ingram Book Group, a separate company from Ingram Entertainment, but also based in La Vergne, Tenn.
America Online is teaming with Videos Now of Digital Courier Technologies, Salt Lake City, to give the on-line retailer prominent positioning on AOL, AOL.com and AOL's Digital City. Videos Now offers over 100,000 titles, according to a press statement, and provides movie information, such as news, gossip and reviews.
Top 10 Supermarket Video Rental Titles
Last
Rank Wk Title (Wks Out)
Godzilla (1)
1 N Columbia $22.95
Hope Floats (3)
2 2 Fox $19.98
Deep Impact (2)
3 1 Paramount $107.37
A Perfect Murder (5)
4 3 Warner $107.37
Lost in Space (5)
5 5 New Line $22.98
The X-Files (4)
6 6 Fox $22.98
City of Angels (8)
7 7 Warner $107.37
Mercury Rising (7)
8 9 Universal $107.37
Primary Colors (9)
9 8 Universal $107.37
Lion King II: Simba's Pride (2)
10 4 Buena Vista $26.99
N=New Week ended Nov. 8
This chart, tailored for the supermarket video market, is based on information taken from more than 1,000 supermarket rental locations serviced by Ingram Entertainment, La Vergne, Tenn.
