Los Angeles film studios are not blind, and the trend of consumers embracing tablets instead of laptops, televisions and movie theaters is hard to ignore.
That's why Lionsgate, MGM, Paramount and Relativity Media have all signed licensing deals with Barnes & Noble to make their films available on the bookstore chain's Nook tablet. The deals were announced late last week.
(Options from Disney, Sony, Warner Bros., HBO and Starz are already available on Nook.)
Analysts have said they think these licensing agreements have the potential to greatly benefit both parties.
For Barnes & Noble, the ability consumers will now have to access films like "The Hunger Games," "Flight" and "Twilight" is an incentive to buy the Nook instead of the Nook's rival, Amazon's Kindle. Nook's sales have not kept pace with those of the Kindle and observers have grown louder and louder in calling for Barnes & Noble to do something to goose sales numbers.
For the film studios and production companies, the Nook agreements are a pathway into the homes of consumers. For years now, consumers have been demanding the chance to consume media when and where they want (think Hulu and DVR instead of paying attention to a show's broadcast schedule) and tablets have only exacerbated this trend. If movie studios and production houses and get where consumers are, it solves the problem of consumers no longer coming to them.
As you can see, licensing deals can be very important to the bottom line of one or both entities signing them. That is why it is important to entrust their negotiation and execution to someone whom you respect and believe in.
Source: The Los Angeles Times, "Barnes & Noble's Nook in video licensing deals with more studios," Dawn C. Chmielewski, March 7, 2103