Every now and then, it’s refreshing to hear some brutal honesty from a Hollywood executive. Speaking at the recent Jefferies & Co. Global Internet, Media & Telecom Conference, DreamWorks Animation CEO Jeffrey Katzenberg said that the decline of DVD sell-through is unlikely to reverse itself anytime soon, and the studios may have only themselves to blame.
Katzenberg, who has been a major Hollywood player for a long time, said that the change in the home video market was “systemic” rather than “cyclical”. He also stated that the studios’ “greed killed the goose” as Hollywood mistakenly believed that consumers would never lose their willingness to pay high prices to own DVDs. Said Katzenberg:
“Two, three years ago people had no problem purchasing a DVD for $18 . . . Suddenly, $20 is something you think about. Twenty dollars for a DVD you will watch once or twice, in a world where there’s Netflix, Blockbuster, Redbox, many VOD services, digital delivery, Amazon, we can go through the list of options on a per play basis where you can watch for $5 or $3 or $2.50 . . . The overall movie world is having to deal with the change in consumer habits.”
Katzenberg’s comments come across as some rather clear thinking for a studio executive. His comments echo the exact same sentiments I felt a few years ago when I looked at my shelf full of expensive DVDs that had mostly been watched once (or were still in the plastic wrap) and I decided that something had to change.
Is Katzenberg’s candor long overdue, Insiders? How many of you have given up on collecting a large home entertainment library when so many cheaper rental options are available? Can anything stop the demise of the DVD? Weigh in with your thoughts in the comments.
(via Home Media Magazine)