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.
Businesses are often formed to provide a product or service – either proactively or in response to a specific problem. But businesses have to be careful that the problem that they are solving remains a current one, or that it solves the whole problem and not just part of the problem. Otherwise those businesses are vulnerable to competition from new market entrants and new technologies. A classic example of this phenomenon is Carbon Paper.
The big news out recently is that beer sales are down about 4% and sales of so-called “premium” light beers are down as well, some by as much as 7%. To paraphrase the famous Captain Renault scene from Casablanca: Captain Renault: “I’m shocked, shocked to find that light beer sales are falling. Waiter: “Here’s your Sam Adams Captain.”