While video-on-demand and Blu-ray disc sales have been on the up and up, EST has seen its growth slow, with Q4 2010 revenue actually dropping 8%.
BTIG analyst Richard Greenfield believes that Hollywood’s tireless attempts to get consumers back in a movie-owning state of mind by selling content online at disc pricing simply isn’t working. Says Greenfield:
“The studios are simply trying to force something to occur that makes no sense for the consumer . . . The whole concept of purchasing content that you can’t see/touch is also likely to be very challenging for consumers to get comfortable with, especially when most movie content is not watched multiple times and is easily available to re-rent at any moment.”
Content ownership will continue to decline as physical and digital rental increase, predicts Greenfield:
“In a digital world, rental has become so convenient there is simply no need to purchase content anymore . . . “It takes the same number of clicks to buy content as it does to rent it.”
Do Greenfield’s comments smack of the truth, Insiders? Have you purchased movies digitally lately, or is Redboxing, Netflixing, etc. just more practical? Should Hollywood give up hope of ever returning to the early 2000s when people were dropping $20 to own movies?
(via Home Media Magazine)