Raise your hand if you've heard this before, the slumping economy is hurting the **** industry. It seems to be a defacto excuse for a lot of big companies. But...if DVDs and Blu-ray are so dead, then why does a movie like Avatar break records on sales? Inception's coming out...I think it will do just fine. I think this is more an issue for TV Series viewers who used to have to wait for the DVD to catch an episode they missed. But if the studios now have this additional licensing revenue (either advertising from their streams on their site or the fee a company like Netflix pays them), then doesn't that counter the loss of physical revenue?
Sure they might not sell 500,000 copies of The Office, but if now they sell 300,000 copies, and they have 1,000,000 people viewing episodes then that sure sounds like a good balance. I'm slightly bothered by the article mentioning that people are going online for "free" episodes they missed--the content airs "free" with advertising on broadcast TV just as it does online. Eventually these will sync up and I think they'll make even more money in the long run. A good movie/TV show will always be in demand.
Now a combination of the economic downturn and the digital revolution has forced the video industry to face up to the same crisis that still traumatises record companies – how to make up the income lost when your key physical product is in decline and predicted to become obsolete within 20 years. Sales and rentals of DVDs and Blu-ray discs fell by 7% to $10.9bn in the first nine months of this year compared with last year, according to the industry body The Digital Entertainment Group; and the British Video Association says DVD sales fell 5.6% last year. The fall was most severe in new-release titles, which account for 25% of the market, with sales crashing 15% in 2009.