No.1 - Death Of The DVD
The digital revolution marches forward – the latest advance involves studios potentially releasing movies on DVD and via On-Demand at the same time. What’s the trade as new technology threatens to reshape the movie biz?
CNBC Media Reporter Julia Boorstin joins the guys for this conversation from Los Angeles.
Julia says the movie studios want to maximize the movies “advertising spend” and consequently would like to release all the home video products as close to the film's original release date as possible. That’s why DVD’s are in stores much sooner these days, she says.
Jeff Macke says the new trend means studios will capture margin and that becomes a great thing for Disney (DIS), Viacom (VIA) and NBC-Universal (GE) or any movie studio. It’s also benefits Comcast (CMCSA) and other VOD providers. Jeff adds he thinks it will kill Netflix (NFLX) and Blockbuster (BBI).
Eric Bolling adds there’s no reason in the world anyone will rent from Blockbuster when you can press a button on your TV and get the very same movie. He agrees the trade is content distributors.
Guy Adami likes Lions Gate Entertainment (LGF) as a potential takeover candidate.
Julia adds that a service called Joost might also be poised to benefit and explains CBS Interactive and Viacom both have a stake in this company, although Joost is privately held.
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Trader disclosure: On June 5, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:
Macke Owns (EMC), (ATVI), (SWY), Bolling Owns (NMX), Sugar Natural Gas Futures; Bolling Is Short S&P Futures; Bolling Is Short Nasdaq Futures Najarian Owns (RACK), (OCPS), (ALVR)
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