Spiraling DVD sales worry Hollywood
Posted
Feb 20 2009, 05:14 AM
by
Kim Peterson
Rating:
DVD sales are slowing down, and that's got Hollywood pretty nervous.
People have filled out their home video libraries, reports The Wrap. That's one of the reasons that DVD rentals and sales dropped to $21.6 billion last year from a peak of $24.1 billion in 2006.
The entertainment industry was hoping that high-definition discs would pick up the slack, but folks aren't rushing to buy a $25 Blu-ray movie in this economy. And who can blame those who sunk money into the now-failed HD-DVD format for laying low for a while?
DVD sales woes are hurting the bottom line at companies like Viacom (VIA), which saw home entertainment sales fall 6% last year to $1.02 billion, The Wrap reports. The picture was bleaker at Fox Filmed Entertainment, where DVD sales were down 15%.
Even Time Warner (TWX), whose had the best-selling DVD of 2008 with "The Dark Knight," suffered a 24% drop in DVD sales. And DVD sales at Disney (DIS) fell by a third, reports The Wrap.
The recession is undoubtedly hurting DVD sales. But maybe people just aren't ready to dump their DVD collections for Blu-ray just yet.
For some titles, like the BBC's "Planet Earth" series, the difference between DVD and Blu-ray is spectacular. But other movies would be just as watchable on DVD.
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