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DVD sales down - online TV to blame?

by David Mercer | 7月 05, 2007

According to a report in the Hollywood Reporter, spending on DVDs in the US fell 2% in the first half of this year. The article concentrates on movie titles, as one would expect from HR, and it is fair to say that disc sales are reflecting poor box office performance of the same titles. But there are other explanations for the maturing DVD market (although it may not be dead in three years as some expect). As with CDs ten years ago, people have built up collections of movies and TV shows, replaced their VHS tapes, and now only need to buy discs when something really appealing comes along. They also clearly have many other choices in how to access a movie or TV show. Legal online movies are still in their infancy, hindered by bandwidth limitations and lukewarm studio support, but online TV is exploding. Is there really any need to own "The Office" on DVD when copies are widely available, if illegally, all over the internet? Strategy Analytics projects $1.5bn revenues from global online video sales, rentals and subscriptions this year. Our surveys certainly show strong consumer interest and even willingness to pay in online video, so I suspect we are beginning to see some of this in the form of a very minor impact on DVD revenues. All the more reason why the studios are keen to get everyone buying Blu-ray Disc players to replace their DVD collections. Something tells me it won't be quite as easy this time round, and legal online video will have to become part of the mix sooner or later.
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