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Spiraling DVD sales worry Hollywood

Posted Feb 20 2009, 05:14 AM by Kim Peterson
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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.

Related reading:

Blu-ray wins the round, but not the fight

Netflix: By-mail business to peak in five years

DVD sales drop. Can Hollywood still profit?

$9 to rent an HD movie on demand?


Comments

 

anybody remember betamax? kudos to sony f/ $crewing up again!

I have a Toshiba - HD DVD Player, and I am sick to death that the format lost out!  Even though I can pick up movies dirt cheep it still hurts!  I am stuck with this thing that had the eternet port for upgrades, etc.  Blu-Ray was BEHIND it's time as far as tecnology.  The picture is just as good, if not better.  I am in no hurry to buy a Blu-Ray player.  It's sad the amount of money for these movies.  Not to mention the Blu-Ray Player being over priced if you want the BD Live features.  So they keep jacking the prices up on these movies.  Now they can see where it got them!  I dont feel bad that there taking a hit right now.  These are tough times we live in and expensive entertainment is not on peoples list's right now.  Just ask Disney, they are taking a big hit right now.

DVD prices keep inching up.  That is why I think twice, even more than twice, when considering buying a DVD.

Drop the prices down to where they are more affordable for the consumer and you might see the public more willing to buy.

These companies can still make a profit - just not as much, but something is better than nothing.

Deut 31: 21And it shall come to pass, when many evils and troubles are befallen them, that this song shall testify against them as a witness; for it shall not be forgotten out of the mouths of their seed: for I know their imagination which they go about, even now, before I have brought them into the land which I sware.

Keep making garbage see what happens!

Price is definitely a consideration, but what about the product quality?  And, no, I'm not talking about the packaging or the audio/video performance.  Movies have been on a death spiral since  the new millennium.  How many films have come out in the past 12 months that are worth watching more than once or twice?  Let's see The Dark Knight, Wall-E, I'm already struggling to come up with a third.  Hollywood needs to innovate to survive.  3-D is catching attention.   Sales of blu-ray will pick up when the back catalog material (which is currently really weak)  appeals more to the overall install base, and is an order of magnitude better in production quality than their DVD counterparts.

You know what cracks me up?  The lack of knowledge at the Hollywood studios.  Did ANY of those Bozo's take a simple course in macro economics?  Supply and demand simply put means just that.  If there is no demand you need to do something.  We are in a severe recession and this stuff is the first thing the consumer cuts out of his/her budget.   The reseach and development stage of Blu-ray is long over.  It's time to not only lower the pricing of Blu-ray to 12.99 per disc but the players to under 200.00.  Greed by a small few in the penthouse suites is why this is happening.  As long as they get theirs....screw the customers and from middle management down to the poor sap that works at Blockbuster.

Blu-ray disks simply cost too much.  Sony spent so much money defeating HD they thought they would get the consumer to foot the bill.  When a new BluRay disk costs no more than a 1$ premium over a current new DVD release, then they may have a chance to sell a few.  Walmart sells new Blu-Ray releases for 29.95 vs 16.95 for most DVD releases.  Hard to justify.  If you have the top of the line Toshiba HD DVD player, those standard DVD look very good.  Sony wanted to win at all costs, the consumer lost...

Disney DVDs have always been overpriced at over $15 each so they have no reason to cry about lower earnings. If you want to sell popular movies like Snow White, Cinderella, etc. then lower the price of the DVD below $15.

If I want a new DVD I check it out from the library for free, if I am willing to wait, all the pawn shops near me are running DVD's 4 for $10.00 and I can eventually find everything I want there.

I have had a blu-ray player for 3 months now. I love it and have never paid more than $15 bucks for a blu-ray disk. You just have to wait till there on sale through Amazon or another website.Forget about Walmart, although I did just pick up a few titles there for $10 bucks each.  Thanks to many websites devoted to blu-ray I am able to constantly find the best deals out there. Quit complaining and go buy one, you will love it!

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