Report: Paramount in Talks to Merge DVD Operations with Sony and Fox

Authored by Jay Baage on July 2, 2009 - 6:20am.

Los Angeles - Viacom-owned Paramount Pictures studio (NYSE: VIA) is in preliminary discussions about merging some or all of its DVD operations with Sony (NYSE: SNE) and Fox (NYSE: NWS), according to Financial Times. The purpose would be to save costs on backend physical production and distribution as the market quickly moves toward digital distribution of film and television content.

Paramount, the studio behind the blockbuster Transformers franchise, is reportedly considering Sony’s DADC DVD production system rather than Technicolor’s system, which the studio currently uses. The Los Angeles Times added that,“people close to the talks stressed that any potential combination would be about saving costs, not about sharing revenue. The studios would not combine marketing or promotion of home entertainment.”

Currently Paramount Home Entertainment handles DVD distribution for most of Viacom and CBS’s DVD releases, inlcuding movies and TV shows, among others. First quarter DVD sales fell 14% in the first quarter of this year, compared to 2008, according to DEG: The Digital Entertainment Group, a non-profit trade group.

Related Links:
http://www.ft.com/cms/s/0/27563712-65b2-11de-8e34-00144feabdc0.html
http://tinyurl.com/m2b425 (LAT)