And once news got out that two Sony releases had sold 100,000 units within two months—by comparison, it took nine months for Sony's first DVD, "Air Force One," to do the same—the other studio chiefs sat bolt upright. Soon afterward, Fox, Universal and Paramount announced their backing, followed more recently by New Line and HBO, which leaves Warner Bros. and DreamWorks the only significant holdouts. Today there are roughly 150 movies, TV compilations, concert videos and animated films available for the PSP, with more than 250 expected by the year-end, making it the most widely supported new video format since the DVD launched in 1997.
So far, the UMD video business, projected at roughly $250 million in revenues for 2005, has been nothing but positive for Hollywood. The studios are milking their catalogs by re-releasing older hits like "First Blood" and "Kill Bill" for $20, while newer titles sell for the same price as their DVD counterparts; as a result, UMD revenues in no way jeopardize total earnings. The early success of UMD videos is pushing retailers like Wal-Mart and Virgin to move them from behind glass and onto the store floor, which should boost sales even more.