Hollywood in turmoil as DVD sales drop and downloads steal the show (Dinosaur Media DeathWatch™)

UK Guardian ^ | May 3, 2011 | Dan Sabbagh

[abb]

It's been a huge source of Hollywood profit but the silvery, lucrative DVD could be consigned to the pages of a history book if plunging US sales continue for the rest of the year. Sales of new titles tumbled by nearly one fifth in the first three months of this year, a decline fuelled partly by a lack of hits and the timing of Easter – but also by the start of what appears to be an irreversible change in consumer habits.

The sale of DVDs has been falling since 2007, but the Digital Entertainment Group (DEG) reported that physical sales collapsed 19% to $2.2bn (£1.3bn) in the first quarter, while high-street rental also plunged by 36% to $440m, in a period when Blockbuster was in Chapter 11 bankruptcy protection. Online downloads and streaming through services such as Netflix, by contrast, grew quickly, although not enough to avert a 10% decline in the total home entertainment market to $4.2bn.

The industry was quick to offer its own excuses, focusing in particular on the late timing of Easter, and the relatively weak schedule of films. Warner Brothers chose to hold back on the release of Harry Potter and the Deathly Hallows Part 1 – an obvious industry banker – until April; a year ago saw the release of New Moon, the second in the Twilight series, or "franchise", which the industry hopes will replace Potter when the boy wizard series draws to a close one film from now.

Those factors led the DEG to point out DVD sales were bouncing back by 20% "in the first few weeks" of the second quarter, although that would still leave the market down overall in the year to date, even with the help of the nearly grown-up Harry.

snip

[abb]

Of interest to our group.

[abb]

ping

[pogo101]

ROKUUUUUUUUUUUUU!

[struggle]

Torrents are probably outpacing both.

[SevenofNine]

Be honest Abb only show I been watching is Discovery Channel Deadliest Catch on Tuesday NCIS on CBS and Spanish soap called La Renia De Sur on Telumundo

What tell you about my viewing LOL!

That good Novela on Telumundo La Renia De Sur

[Buckeye McFrog]

that’s why Hollywood’s b*tch, the Obama Administration, is turning Eric Holder loose to send the parents of 15 year olds who download something to Leavenworth where they will receive treatment far worse than he’d ever allow at Gitmo.

[abb]

http://www.washingtonpost.com/business/economy/the-washington-post-co-reported-a-two-thirds-drop-in-first-quarter-earnings/2011/05/06/AF3fsN7F_story.html
The Washington Post Co. reported a two-thirds drop in first quarter earnings

http://www.bloomberg.com/news/2011-05-06/washington-post-profit-declines-67-as-kaplan-education-enrollment-drops.html?cmpid=yhoo
Washington Post Profit Declines 67% as Kaplan Education Enrollment Drops

http://www.latimes.com/business/la-fiw-tribune-20110507,0,4742576.story
L.A. Times publisher Eddy Hartenstein named CEO of Tribune Co.

http://www.nytimes.com/2011/05/08/magazine/mag-08Tina-t.html?_r=1&pagewanted=all
Tina Brown Is Still Hungry for Buzz

[swain_forkbeard]

I have never bought DVDs. I just never wanted to amass a collection of movies I could watch anytime. I don’t torrent them either. For a small monthly fee, I can rent and stream all the video I have time for.

[Hacklehead]

What difference does it make? The studios will simply adjust their sales agreements to take a cut of each download or stream, rather than DVD sales.

[Sir Napsalot]

>>> Sales of new titles tumbled by nearly one fifth in the first three months of this year <<<

What ‘new titles’ are worth having?

People must have gotten all the ‘oldies but goodies’ to their collection, but don’t see the need to purchase more (new titles) at current time.

[Snickering Hound]

[moehoward]

I doubt they ever gave they up.

[KarlInOhio]

Rental prices have dropped through either Redbox or Netflix. I used to hit the $5-$10 bin at Circuit City and pick up a few movies whenever they had a sale. It was just a little more expensive than renting at Blockbuster and I got to keep the movie for the price. With CC gone I don't see as many of the cheap discs at other stores except on clearance sales. And even a cheap movie seems expensive when I can rent it for $1.

[TheOldLady]

Keep That Smile On His Face
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[moehoward]

"People must have gotten all the ‘oldies but goodies’ to their collection, but don’t see the need to purchase more (new titles) at current time."

I've got a ton of VHS. The high milage titles are the first that have been replaced with DVD. The old VHS copies get donated to the local Library. Newer stuff best viewed in HD like Ironman, I buy in Blueray.

What I really like seeing is what Disney has done to some of their titles that have both Blueray and standard DVD in the same package.

[abb]

http://www.poynter.org/latest-news/romenesko/131279/wsj-print-edition-has-had-17-consecutive-quarters-of-circulation-revenue-growth/#more-131279
WSJ: Our print edition has had 17 consecutive quarters of circulation revenue growth

http://www.adweek.com/news/television/dauman-tightens-reins-mtv-networks-131399
Dauman Tightens Reins at MTV Networks

http://www.niemanlab.org/2011/05/the-newsonomics-of-the-new-abcs-of-journalism/
The newsonomics of the new ABCs of journalism

http://adage.com/article/digital/sen-rockefeller-ready-a-real-track-bill/227426/
Sen. Rockefeller: Get Ready for a Real Do-Not-Track Bill for Online Advertising

http://adage.com/article/digitalnext/start-paying-consumers-watch-video-ads/227421/
Why Everyone Is Going to Start Paying Consumers to Watch Video Ads

http://gannettblog.blogspot.com/2011/05/gannett-dives-to-no-415-on-fortune-500.html
Gannett dives to No. 415 on new Fortune ‘500’ list

http://www.broadcastingcable.com/article/467881-Post_Newsweek_Station_Revenue_Down_2_.php
Post-Newsweek Station Revenue Down 2%
Lack of Olympics, political advertising drags Q1 revenue

[dangerdoc]

I have always been a media customer, I’ve purchased many DVD and BD discs in the past. I still walk through the movie selection looking for something interesting to buy.

Hollywood is not making a product that is worth buying. They aren’t even making a product worth seeing for free.

It is the product, not the market that is collapsing.

[IL Republican]

You must not have kids.

I do buy kid movies. My 3 year old likes to watch the same movie over and over again.

I bet we’ve started Tangled at least 50 times. Rarely make it to the end, but we at least start it. Per viewing, our $25 purchase for the blue-ray is only $0.50!

[wiggen]

I can’t watch any show that’s on once a week. I simply don’t like the wait. Sports,movies,news.

[abb]

http://www.medialifemagazine.com/artman2/publish/Media_economy_57/Behind-the-huge-growth-of-social-media.asp
Behind the huge growth of social media - Ad spending will quadruple by 2015, to $8.3 billion

http://www.fiercecable.com/story/cablevision-continues-see-subscriber-slide-blames-economy/2011-05-05
Cablevision continues to see subscriber slide, blames economy

http://finance.yahoo.com/news/On-the-Call-Time-Warner-CEO-apf-2647834515.html?x=0&.v=1
On the Call: Time Warner CEO Bewkes on Netflix

http://www.businessweek.com/magazine/content/11_20/b4228019711870.htm
This Summer, Hollywood Could Use a Hero