As we cruise into the latter half of 2011, the once-dominant physical disc continues its slide towards oblivion. The Digital Entertainment Group (DEG) is reporting that home entertainment disc sales dropped 18% in the first six months of the year compared to the same period in 2010.
The decline has been chalked up to the lack of major hits being released on DVD and Blu-ray so far this year that can approach the success of Avatar last year.
The bright spots in the DEG’s report were Blu-ray sales, which ticked up 10%, the subscription market (46% growth), and the Redbox-dominated kiosk market (40% growth).
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It looks like Hollywood’s going to have to get more creative if it wants to lure consumers out of their “rent, don’t own” mindset. Is there anything the studios can do to jump-start movie disc spending?
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(via The Wrap)
Of course they can, but they’ll never release a new movie with an MSRP of $9.99. I think if that happened, I’d have a heart attack for one, but more importantly people would start buying more. Right now the best you can hope is to catch it on sale the first week or two for maybe $13 at best, otherwise you’re shelling out a Jackson for something you’re only going to watch a few times.
On the other hand, (data caps and throttling aside) most people would probably prefer to watch whatever movie they want, whenever they want, without having to leave the couch. If they invested in Netflix and allowed them to stream every movie without delay, they would get a much higher ROI. If each major film distributor took just 5%-10% stock in Netflix, they would see a huge jump in revenue…
Is there anything the studios can do to jump-start movie disc spending?
Old issue…
When, Oh when, will the content creators realize that disk sales with high margins come only from increasing **added value**.
In other words, the disks should include everything from: commentaries and documentaries to even double-features!
The statistic quoted above is misleading. How do you draw the conclusion that the disc format is “sliding towards oblivion” with an 18% drop in sales using absolute numbers? How about the disc format as percentage of overall sales numbers? Something to account for the overall drop in sales due to increased prices and decreased quality? And how much of that is a result of a product strategy (i.e., imposed, rather than consumer-driven)? There is nothing wrong with the format, but there sure seems to be something wrong with Hollywood.
Visual entertainment has evolved quite a bit in the last decade and the Internet has caused the biggest change. Unfortunately, that has not only affected television but also, apparently, movie production. This has lead to a change in the film production that is tailored to compete for an audience that is used to YouTube and given rise to “films” such as Jackass. I don’t know if that’s a winning strategy but if it is, I don’t really know who’s “winning”.
Luckily, there is a lifetime of great movies that I haven’t seen yet, so I’ll just have to turn to some sources that can provide that. Hopefully, what happened with books and initiatives such as Project Gutenberg will happen with movies.
Maybe if they came out with some good movies??? No wonder people don’t buy
Dvd’s – the movies this year are the Pits!!! ( I won’t even rent them )
I tend to try something [rent] before I buy it, to see if it’s worth buying immediately. So far this year, I haven’t seen anything that’s worth owning right off.
So like the other comments above me, I vote for the making of better movies.
BTW, Avatar wasn’t all that great – but for some reason the disc sales were good – go figure!
Avatar sucked – I turned it off and did not even watch all the way through.
The only reason I buy a physical disc is if it has extras like film maker and actor commentary, deleted scenes, behind the scenes. Those discs without such make me feel like the whole medium of BD is wasted.
I love BluRay but I will not pay $25-30 for a movie that I will only watch a couple of times when I can rent it for $1.50.
Hollywood is going through the same thing as the music industry when people got fed up with spending 15-20 on a CD and it only had 1 maybe 2 good songs on it. They are so busy churning out numbers and forgetting about any quality.
Like any product, poor quality equals poor sales. To make matters worse, I have never seen an industry that alienated half of their potential buyers the way that Hollywood does and then cries when we do not buy their product. I refuse to even go to the theatre and always wait for the DVD because they are going to get as little of my money as possible.
I buy DVDs – at discounted prices ONLY. This past weekend, at a garage sale I bought 17 DVDs (Easy Rider, all 3 Die Hards, The Rose, Animal House, In Cold Blood, Fried Green Tomatoes, etc., etc., etc., – good movies and good quality for $1.14EA or 6 cents more per than I could rent from Redbox.
When desperate (and I haven’t been lately) I buy them from BigLots! for not more than $3+tax – & if real lucky – and I have been I get entire sets (Bionic Woman & Greatest American Hero, etc.) for 3 bucks!
If I am dying for something and cannot find it I go to Amazon. I pay a little more, but then I only buy from “100%-guaranteed-sellers” with 100% backup defence from Amazon. I also buy new wholesale priced sets from Amazon like the entire “Twilight Zone,” & “The Prisoner” and others – w/no shipping and handling and no sales tax. Sales tax is a on-line dealbreaker for me.
I have no intention of buying a BluRay box until they get down to where regular DVD players are now – @$20 – I’ll wait – not a problem. More often than not movies put on DVD since @2008 have been HD anyway, and they really do pop right out of the TV. I can’t imagine BluRay being all that much better and worth their current cost.
I haven’t been inside a movie theatre in @ 5 years – with their $5/box of popcorn & candy, $3 soft drinks, sticky floors, cellphones, running conversations, babies crying and general rudeness.
Well, that’s my story and I’m sticking to it.