Wal-Mart Scales Back DVD Displays

I’m not exactly sure why this is such a "huge" blow to Movie Studios, I think it’s really just the evolution of their content. It’s not like people aren’t buying DVDs now because they’re all pirating them? Instead, they just have so many alternatives to how to view and obtain their content without having to drive to a dreaded Wal-Mart that they choose that. Wait until bandwidth increases and we can purchase high-definition movies on the fly from our homes….

Wall Street Journal

As part of a larger effort to clean up its aisles and appeal to higher-end shoppers, Wal-Mart Stores Inc. is doing away with display cases to promote the latest hot movie titles. The move comes as major film studios are reeling from declines in revenue from DVD sales as cash-strapped consumers turn to low-cost rental services and digital downloads for home movies. "We think the new strategy implies Wal-Mart no longer sees DVDs and Blu-ray discs as traffic drivers," J.P. Morgan analyst Imran Khan said. Studio chiefs dispute that conclusion, noting the importance of DVDs as a sales category for Wal-Mart, but none would speak publicly for this story.

 

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