Question-and-Answer Session
Operator
(Operator Instructions) And our first question comes from the line of Drew Crum of Stifel Nicolaus.
Drew Crum - Stifel Nicolaus
Great, thanks. Good morning, everyone. I just wanted to get some commentary on what you are seeing in terms of from your licensing partners with respect to minimum guarantees, terms, et cetera, ahead of Wolverine. Secondly, it sounds like you are holding up in the home video market but given the deterioration we’ve seen over the course of the last several months, any revisions to the film model going forward?
And then finally with the Spider-man musical coming in February of next year, how will that impact the P&L in 2009? Thanks.
F. Peter Cuneo
David, do you want to talk about the home video market?
Matt Finick
Yes, this is Matt. As Ken mentioned in his opening comments, for us the home video results have been in line or exceeding what we’ve had in our ultimates, and I think that probably had to do with a couple of things. We released our DVD, especially on Iron Man, we released our DVD a little bit earlier just before the market started to fall. I think we also have an installed base of Marvel fans that helped us, and thirdly, we spent a lot of time on the special features so I think our content was very strong.
When looking forward, I think right now we are happy with all of the assumptions that are in our ultimates, so while we are seeing the overall DVD market is challenging right now, I think our numbers are -- we’re comfortable with our numbers.
Kenneth West
Regarding the Spider-man musical, for 2009 there’s no material financial effects. Just to reiterate, we are not investing any capital into the Spider-man musical and we do have a very significant first dollar gross participation in all the revenues. So for 2009, there should be no financial effects; 2010, again no cost effects, only whatever revenues we get as our gross participation in the show, including merchandise revenues, by the way, which some of these shows do significant business in.
F. Peter Cuneo
Thank you. Drew, your question regarding licensing, we continue not to see any major weaknesses in our licensing programs based on conversations with our licensee partners. That doesn’t mean that something can’t develop later this year and as we’ve mentioned several times in our guidance, we think we’ve been appropriately reserved when it comes to some of our forecasts.
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