The Rise & Fall of DVD Sales

Not to read overmuch into this, but it was interesting to see last week that Pixar adjusted its earnings outlook based on crummy sales of its The Incredibles DVD. This is, however, part of an industry-wide softening in the DVD sales market.
Why is it happening? Here are some factors:

  • In 1998 theatre-to-DVD time was 7 months, while it’s 4.5 months today, with many coming out as quickly as three months after release
  • Studios are flooding channels with “classic” content, which diminishes the marginal value of new releases
  • Further fragmenting in entertainment markets, with games and net-surfing competing with serial technology like DVD watching

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