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Not everyone associated with the movie business believes that delayed new release windows placed on Redbox and Netflix are halting the decline of DVD sell-through.
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Witness recent comments by BTIG Research analyst Richard Greenfield, who believes that the aforementioned companies, as well as Blockbuster Express, are at least partly responsible for the 11% decline in disc sales in the most recent quarter.
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Greenfield believes that sales through the first three quarters of the year, which have declined 7% overall, would have been even worse if not for a strong showing by Avatar:

“In fact, we believe Avatar meaningfully skews the overall consumer spending on home entertainment for the nine-months, which is quite concerning when thinking about [the fourth quarter] and 2011,”

According to Greenfield, the 28-day new release windows imposed upon Redbox and Netflix by several major studios are having little effect and are serving to confuse consumers. Said Greenfield:

“The movie industry has fragmented to the point that the consumer does not understand it, meaning while Avatar may not [have been] available day-and-date at Netflix and Redbox, but Toy Story 3 and Alice and Wonderland were,”

Is Greenfield on the money here, Insiders? Is the evidence starting to mount that consumers just aren’t willing to buy movies like they used to, regardless of the windows that Hollywood attempts to force them into?

(via Home Media Magazine)

10 Responses to “Analyst: Redbox and Netflix Still Hurting DVD Sales”

  1. Member [Join Now]

    I’m not willing to buy movies like I used to because I am busy buying food and paying my rent. There are movies that I intend to buy and movies that I intend to rent and rarely does one cross from one category to the other unless one I rent turns out to be WAY better than I thought it was going to be. I know my kids will watch Harry Potter to death so I am not going to waste time and money renting it.

  2. Member [Join Now]

    I think most people don’t want to shell out extra money for DVD’s when they have other things to pay for. The cost of everything is going up so some entertainment items will suffer. Not to mention that Hollywood hasn’t really been turning out a lot of quality movies in the last couple of years that I’ve felt the need to add to my collection. Start making better movies and DVD sales will probably increase. No one wants to buy crappy movies that they didn’t want to see in the theater in the first place.

  3. Visitor [Join Now]
    Arnold [visitor]

    Of course Netflix and Redbox are hurting DVD sales. However, this is the kind or economic change which will always be going — someone comes up with alternate ways to provide people with entertainment at a fair price — they can’t stop that. Of course providing better movies would help (recently I’ve had difficult keeping my Netflix queue filled with movies I’d really like to see). But there are just too many ways to get movies and TV shows now, and the studios aren’t going to be able to turn them into cash like before. You have to remember that being able to own a movie in a high-quality format was a novelty when DVDs first hit, but that novelty isn’t going to last forever, and people will adjust their viewing habits to the new options which are available. The movie studios don’t seem to realize you can’t freeze time.

  4. Member [Join Now]

    It is amazing what these analysts don’t know or don’t care to realize… I’d like to know was the last movie THEY actually bought? and were they really satisfied with their purchase? As a regular consumer, with my wallet tightened, not only have I cut back, (and most of the movies haven’t been worth buying) but I have grown tired of buying a movie this week, for another version to pop up a few weeks later, and then another a couple weeks after that.(i/e James Cameron’s Avatar- There are currently 4 versions, with another due out next week.) Stop already-How may versions can you expect us to buy? Then companies like Disney give us games as “special features.” So with lame choices like that, it makes it easy for me- I don’t buy any.

  5. Member [Join Now]
    Mikey K [mikey-k]

    I stopped buying movies awhile back for several reasons. The main reason is all the garbage they put on the discs. I really don’t want to see all those various warnings, comments about this commentary doesn’t reflect the opinions of the studio, forced trailers and ads, studio logos, ect. If I purchase a disc, I just want to see the movie/TV show. Ironically, if you pirate the disc, you can have just that.

    I grew tired of the constant re-releases. I also refused to buy any film that was released in fullscreen when the film was shot in widescreen. Plus 99% of all DVDs will come out on release day at an inflated high price and will plummet to the $5.00 to $10.00 range within months.

    So the question remains: Why would I fork over $20 to get a movie on release day when the price will fall like a brick, a potentially better version will come out 6 months later, and I still have to deal with all the extra crap on the disc each time I want to watch the movie?

    How about this? Strip the disc of all that useless garbage so that to movie goes straight to an un-animated menu when inserted into the player. Put only one version of the movie out, meaning the highest quality transfer in the original aspect ratio with all bonus features. Then release the disc at a sane $10 price point.

    If they do that, I believe many more people will start buying movies again. Until that day happens (Which is not very likely) then myself and millions of fed up consumers will continue to just rent or stream movies.

  6. Member [Join Now]

    Never bought any DVD so far. I go out to watch movies on big screens 2-3 times a month. Otherwise I rent from Redbox (2-3 DVDs a week). I have 5-6 Boxes with couple of miles from my place. Redbxo is the best that happened in the DVD rental business. Why would I ever want to buy anything, except for very rare cases, if I can watch it for $1? For those who were buying DVDs this kind of Economy is not helping either.

  7. Visitor [Join Now]
    Dave [visitor]

    Quantity vs quality

    There are ALOT of movies being churned out. Who has time to watch them all? If only critics weren’t uselessly over-opinionated and actually served as a meaningful filter for the good vs bad.

    Further, who has room to store them all? If I bought the amount of DVDs they expect me to buy my living room would be flooded with them. No thanks, I’ll take the $1 rental and rent again even 10 times if necessary…it’s still cheaper and saves me the hassle of finding a place to keep them, having to find them again when I want to watch them, etc.

  8. Visitor [Join Now]
    Thicker [visitor]

    Fire the analyst. He’s an idiot.

    And tell Hollywood to stop whinning. The future has arrived for them and they are crying about how painful it is. Boo Hoo.

    Agree with Bart & Mikey K too. Why do I need to sit thru any of their commercials with opinions contrary to mine, and who would even think of buying that God awful Cameron blue cartoon Avatar in not just one, but several versions? They continue to shoot themselves in the feet and then whine as if someone stuck the gun in their hands. Guns don’t kill studio exec’s. Studio exec’s do.

  9. Visitor [Join Now]
    Mike Z [visitor]

    Mikey K: Problem is, there’s many people like myself who refuse to buy many DVDs because it LACKS all the extras that you aren’t interested in. Most of these extras, like deleted scenes, cost little for the studio to add other than for a low-level engineer to devise a menu to show these already-filmed clips. Personally, I’d like to see some of these extras available a-la-carte, like commentaries that I might only watch once, maybe as a $3 iTunes viewing.

  10. Member [Join Now]
    ChadCronin [chadcronin]

    I am still buying the movies I really want and the ones that I want but I think are just ok movies I wait til they are $8 or $10 @ Walmart or under $15 @ Best Buy. As far as rentals go, I only think about movies when I see a commericals, then usually a month or 2 later I see them in Redbox and usually don’t look for a particular movie anymore since I don’t expect movies any certain time or think they will be in stock. All the delays and DRM on Blu-rays have me caring less and now I do spent alot more time on my phone and on facebook.