Update on Blu-ray and DVDs

Most companies prefer sales charts that move up and to the right, not down and to the right.

Today’s Wall Street Journal has an article which validates my previous post on Blu-ray’s obsolescence. Today’s article notes that DVD/Blu-ray sales are continuing to decline from their peak of nearly $16 billion in 2007, to less than $13 billion in 2009. Year-over-year sales declined 14% in the 2nd quarter of 2010 with no expected increase. Most movie execs claimed that a lack of movies was responsible for the decline in sales not a shift in viewing and buying patterns.

The article highlights the increased competition from Video On Demand (VOD) as one of the primary reasons for this accelerating trend, while article commenters placed the blame squarely on poor content. Either way it doesn’t bode well for an industry that has come to rely on DVD sales for profitability.

In fact content might be a big part of the problem. It was a rainy day here in Rhode Island yesterday and I wanted to take my daughter to the movies –  but out the 80-90 movie screens within 15 minutes of my home there was only 1 G-rated movie to choose from. In fact one multi-plex with 10 screens was showing 9 different R-rated movies with the lone exception being rated PG13. It’s not that I have a problem per se with R-rated content, it’s just that there were almost no suitable children’s movie matinees to be seen.

Instead we used the free VOD to watch a children’s TV show because she wasn’t feeling great. Sure it was cheaper and easier than going to the movies, but it also lacked the presence of a well crafted movie for children, and the parents who bring them. Full story at Wall Street Journal here. Why do you think that DVD/Blu-ray sales are falling? -t

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