THE BIJOU BIZ: Comedies Under Budget Pressure But Digital Distribution May Help

An interesting story in today's Los Angeles Times online looks at the business of making comedies these days.  The article points out that while DVD revenue has collapsed for the comedy genre (all genres are down but comedies seem hit especially hard), digital distribution of comedies (video on demand and via devices such as iPads) is growing fast.  Generally speaking, digital distribution of films represents a major area of revenue growth for Hollywood studios.  Some estimates put digital at 10-15% of domestic box office in the near future, about the same as cable-TV licensing earns for the studio.  And the best part: there is virtually no cost associated with this new form of distribution (lots of 1s and 0s flying through cyberspace) as compared to DVD distribution (production and packing of physical discs, rising shipping costs, easier piracy, etc.).