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Report: DVD Sales to Drop 12% in 2010

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)

12 Responses to “Report: DVD Sales to Drop 12% in 2010”

  1. Visitor [Join Now]
    Jake [visitor]

    The number of discs I’ve purchased has dropped (though not stopped entirely). The amount of digital media I’ve purchased has not gone up at all. In fact, I don’t see myself purchasing digital media because of the amount of DRM on those files. If I have a disc, I can loan it to my inlaws (consequently, they can loan a movie to me). We can trade discs if we so desire. If I decide I don’t care for the movie any more, I can trade it in at a second hand shop or sell it online. All perfectly legally. Not a single of those is available with a digital only copy.

  2. Visitor [Join Now]
    Snail [visitor]

    Digital delivery will displace physical media? At those laughable Internet speeds we have in the US? Speeds that have barely grown over the last decade? And who needs ever changing digital formats and DRM? And online services who want all sorts of information before they’d deliver the content? I hate anything that asks me for a user ID and password – if you are not a bank, don’t ask me to create an account. No, thank you. I’m fine with low-cost, ease of use, stability, anonymity, etc., of DVD. If Blu-ray can be made to compete (total cost-wise), I’d give it a shot.

  3. Visitor [Join Now]
    JC in NC [visitor]

    Buy DVDs? Why should I? There are very few movies that I want to actually own anymore. I used to buy them in the past, but nowadays, if I don’t get around to seeing the movie in the theaters, I’ll usually rent it from Netflix or Redbox. Only if I really LOVE IT do I go and buy it from Walmart. The last DVD I brought was “Star Trek” because I’m a big fan and the film was great fun. And, going slightly off topic, 28 days or so ago, that new “Justice League” DVD was released to the stores. Even though I was crazy interested in seeing it, I just simply refuse to pay for something that I’ll probably watch once or twice. I waited until today (when the DVD was released for rental) to reserve the movie at Redbox. I’m on my way to pick it up now. I refuse to let the studios force me into buying something….I can wait for it.

  4. Visitor [Join Now]
    Steph [visitor]

    The prices of DVD’s are just too ridiculous. It can’t possibly cost all that much to make of DVD. I only buy DVD’s that I absolutely love and will watch more than 20 times, and I only buy it if it is on sale. It’s just cheaper to rent the movie from Redbox even if I have to rent it multiple times.

  5. Member [Join Now]
    ChadCronin [chadcronin]

    I wouldn’t mind digital at all… if it was 1080p with a large bit rate and great sound quality, so that you couldn’t tell the different between it and Blu-ray and no DRM. I doubt that will happen, so until it does, I’m still mostly with Blu-ray for my purchases (I used digital for some current HD tv and old SD tv shows)

  6. Visitor [Join Now]
    SilentLogic [visitor]

    I reduced buying DVDs a lot. My old ones are just sitting there gathering dust. Blu-rays are just too much when new. I just rent mostly and buy when I know it’s going to get used multiple times such as Batman Begins, Star Trek, and G.I. Joe. I absolutely hate that there are still black bars on the top and bottom of my TV despite being a 16X9 TV. That’s because they lied to us about the format. HDTV’s are 1:85 to 1 while movies are 2.40 to 1. Just make the DVD’s 1:85 to 1, ok? Want to increase DVD sales? Then make better movies, get rid of the stupid commercials on the DVD’s, and just improve on it such as using mp4 compression. We don’t need Blu-ray and it’s added cost. Just improve the DVD experience and it will renew people’s feeling towards it.

  7. Visitor [Join Now]
    Laura [visitor]

    Move the redbox in where its warm and more people will rent them I will not stand out in the cold snowing weather to rent a movie I would rather pay 5 dollars to rent it or get it of tv!!

  8. Visitor [Join Now]
    Sunfrog [visitor]

    Digital is not a threat. Digital is stupid. What’s killing sales is Redbox and the internet piracy. If you can watch movies for free or $1 anytime you want why would you purchase? Don’t count Blu-rays out yet because that is the only way to watch movies in high def. It’s way better than crappy online video, just not as convienient yet because of price to buy and Redbox not renting them.

  9. Visitor [Join Now]
    ocgamer [visitor]

    Its hard to justify paying $24 for a new release blu ray. Even smokin hot titles are hard to pay that much when we all know in a couple of months it will be half that or more. What I never understood about Hollywood is why they raise prices in a down environment. I just read an article here about DVD sales being down 12% in 2010. That to me says lower the prices by alot a whole lot. I agree with sunfrog its way to easy to get movies via the internet many times before they are released on DVD. If you have the bandwith you can get blu rays at 100% quality. While I think redbox’s decision to keep rentals at $1 is just barely at the price point where it fights with free. Blockbuster is dead why they are still around I donno but who is going to pay their rediculous rental prices. But even redbox has to watchout because when you want to rent movies and they are all rented at any kiosk the internet is always there 24/7 and its sometimes easier and better as there are no annoying commercials. So lets review free and no commercials or full price and annoying commercials. Thats a real hard one!

  10. Visitor [Join Now]
    Loree Barkie [visitor]

    Take a loan for a solid property like a mortgage because even when you cannot be able to repay you will be saved the humiliation as your pride will be spared when the mortgage is snatched from the neighbors snooping noses.

  11. Member [Join Now]

    Probably the main reason for myself and probably many others in DVD declining purchases is a growing collection of movies over the years that I have at home that just takes up space, and movies I just don’t care to watch anymore. I just purchased my 1st blu-ray player and I intend to only buy movies on sale and that I’m sure I will watch over and over again. For me buying most mainstream hollywood movies is a waste. You can see them easily in a variety of ways, and most are not worth owning.