Studios and others hoping for a return to the heady days of the early 2000s when DVD sales were on fire have gotten a cold splash of reality from a new study. After plunging an estimated 9% last year, DVDs sales will decline a further 12% in 2010, according to Boston firm Strategy Analytics.
An increase in sales of Blu-ray discs to $6.5 billion worldwide will not stop the free fall of physical media, the firm conjectures, and it recommends that Hollywood move as quickly as possible into the digital realm to offset the decline in disc sales. Jia Wu, an analyst in the Strategy Analytics Digital Consumer Practice, said the following on the matter:
“The Blu-ray format faces greater competition from DVDs than DVDs did from VHS . . . Blu-ray will have to compete with next-generation digital on-demand services. Otherwise, the industry is poised to face the prospect of a worsening home video market in the years ahead.”
Insiders, has your disc collection stopped growing as more digital options have become available in recent years? How much of the DVD’s decline can be blamed on digital delivery versus the recession, the rise of cheaper rental options such as Redbox, and other factors?
(via Home Media Magazine)