Image enjoying 'best year' in supplier's history
Touts strong future in first retailer conference
By Susanne Ault -- Video Business, 12/9/2008
DEC. 9 | LOS ANGELES—Image Entertainment is enjoying a record fiscal year, supported by a new feature film business, according to management at its first ever retailer conference on Tuesday here.
The supplier acknowledged its past troubles, including a collapsed merger with BTP Acquisition Co. and a hostile takeover attempt by Lionsgate, before underscoring the fact that its future is bright. Image is especially satisfied with its business direction in light of struggles many other indies have had this year. Both First Look Entertainment and Genius Products are among smaller suppliers that have undergone major layoffs.
Seventy-five retailers and distributors were in attendance, spanning all classes of trade, including Best Buy, Netflix, Blockbuster, Wal-Mart distributor Anderson Merchandisers, Borders, Hastings Entertainment, Redbox and VPD, among others.
“We are in the enviable position where this will be our best year in our 25-year history,” said David Borshell, Image president. “This bucks the trend of many independents having a difficult time.”
Image has previously estimated that it will earn between $120 million and $130 million during its current 2009 fiscal year. That should top its past best annual performance to date, the $118 million tallied in 2004.
For the last couple of years, Image has unsuccessfully tried to find a buyer for its company after scrapped negotiations and filed lawsuits involving BTP and Lionsgate.
However, last month, Image agreed to be purchased by Nyx Acquisitions for $100 million.
Image plans to continue to operate much as it always has under its new ownership. A large part of Image’s business during its current fiscal year will come from high-profile feature film releases headlined by a recognizable cast. Three to four such movies will premiere on DVD each month. One to two will bow first theatrically, before Image distributes them on disc.
Over the course of its prior fiscal year, Image didn’t have a significant stake in this area. Now feature films make up 27% of its revenue, Image’s largest business category.
On deck for 2009 theatrical and/or DVD premieres are Management starring Jennifer Aniston; Incendiary, Michelle Williams and Ewan McGregor; $5 a Day, Christopher Walken and Sharon Stone; The Edge of Love, Kiera Knightley and Sienna Miller; Powder Blue, Jessica Biel and Forest Whitaker; and In the Electric Mist, Tommy Lee Jones.
To underscore to retailer attendees its commitment to star power, Image presented conference guests with an appearance by Jack Nicholson. The star wanted retailers to know how important it is to support indie films from companies such as Image.
“He talked about having more creative freedom when working with an indie over a major studio,” said Bill Bromiley, Image chief acquisitions officer. “Also, the filmmakers have more financial control with indie projects.”
Nicholson appeared after a screening of In the Electric Mist, which is produced by the star’s friend, Michael Fitzgerald.
Another key area for Image business going forward is comedy, which represents 16% of its business. Next year, Image will release a DVD of comedian Terry Fator, who is positioned as a follow-up to the company’s successful Jeff Dunham franchise. Dunham’s most recent release, Nov. 18’s Very Special Christmas Special, shipped 750,000 units, a hefty amount for non-feature/non-TV product.
Like Dunham, Fator is a puppet ventriloquist. Fator also has a built-in fan base, winning the series America’s Got Talent in 2007 as well as recently signing a $100 million deal to perform his act at the Mirage casino in Las Vegas for the next five years.
Image’s remaining business segments break down as Criterion Collection at 17%; Discovery Channel, 15%; music DVDs, 8%; classic TV, 8%; and other, 9%.
Overall, Bromiley hopes Image’s retail customers came away with confidence about the supplier’s ongoing business.
“In a marketplace as difficult as it is, we wanted to show people how much we’ve accomplished,” said Bromiley. “This will be our biggest year yet in terms of revenue.”