Disney CEO Bob Iger made some interesting comments on his company’s recent quarterly financials call regarding the decline of DVD sales, blaming the drop not on the recession but rather on shifting consumer preferences and an abundance of choice.
“On secular versus cyclical and the overall question about DVD trends, I’ve been pretty vocal about that business, suggesting that while many believe that we are seeing cyclical trends that were due to the downturn, that we thought that they were secular trends that were also impacting the business due largely to just more competition for people’s time more than anything else.”
Unlike other studio heads, Iger refrained from blaming Redbox, Netflix, etc.for a role in the decline of DVD sell-through, a stance consistent with his previous comments.
Iger went on to discuss his company’s expectations for its blockbuster new release, Toy Story 3. The ever-circumspect Iger said he expects the title to do “quite well”, but says that if you were to compare Toy Story 3‘s numbers to “what films we did just three, four, five years ago, you’d be sobered by those numbers.”
Can anything break the DVD out of its sales funk, Insiders? One guesses from Iger’s tone that he suspects the trend of declining disc sell-through to be a permanent one. Do you agree?