Skip to main content

DVD Sales Decline Concerns Movie Studios

NYTimes reports that after more than half a decade as Hollywood's savior, the DVD is looking a little tired � and the movie studios, for once, are having trouble coming up with a sequel.

DVD sales represent more than half of the revenue studios generate from most of their movies. But those sales are expected to grow just 2 percent this year, a far cry from the double-digit growth the industry enjoyed just two years ago. High-definition DVD's were supposed to pick up the slack, but technical delays and a thorny format war between camps led by Sony and Toshiba have dampened expectations.

Studios are starting to beam digital movie files to consumers over the airwaves and send them through the Internet, but sales so far are minuscule. Rentals and video-on-demand, though growing, generate far smaller profits for the studios than store-bought DVDs.

This explains why executives who gathered in Los Angeles earlier this month for an industry conference expect, for better or worse, that the plain old DVD will remain their bread and butter for several more years. Meanwhile, they are trying everything they can in their quest for a new cash cow.

For the studios, the clock is ticking: sales of standard discs are expected to fall by about 20 percent by 2010, according to Adams Media Research, an industry consultant based in Carmel, California.

Popular posts from this blog

Navigating AI Implementation Challenges in 2025

As we approach 2025, the global Artificial Intelligence (AI) market is poised for significant growth. Traditional AI spending is rising, while Generative AI (GenAI) struggles to meet lofty expectations. This apparent dichotomy presents challenges and opportunities for vendors and business leaders navigating the complex world of AI implementation. Let's explore the overall situation. Traditional AI: A Pragmatic Approach In the coming year, we expect to see a surge in traditional AI spending as enterprises seek pragmatic, ROI-driven solutions. This trend is driven by a growing recognition of the limitations and risks associated with GenAI projects, which have shown alarmingly high failure rates of 80 to 90 percent in proof-of-concept stages. The trend towards traditional AI is further supported by data from Amazon Web Services (AWS), which revealed that over 85 percent of AI projects in 2024 were not based on GenAI.  This insightful statistic underscores the continued relevance and ...