DVD Death Watch: Sales Drop 20 Percent – Yahoo! News
Ian Paul – Wed May 4, 10:49 am ET
DVDs are one step closer to extinction if recent numbers from a Hollywood trade group are any measure. DVD sales in the United States dropped by 20 percent during the first three months of 2011 compared with the same time last year, according to a report by the Digital Entertainment Group.
It’s not hard to see why Hollywood studios would be nervous about losing their DVD cash cow. Even after a 20 percent drop, DVD sales accounted for more than $2 billion in revenue for the quarter. Digital purchases and video on demand (not including streaming), by comparison, brought in a little more than $600 million. Subscription and streaming rental services accounted for nearly $700 million.
Alternative Growth
While DVD sales were falling off a cliff, other entertainment choices were gaining in popularity. Subscription and streaming services such as Netflix grew by 33 percent compared with the same time last year, digital download purchases (what trade groups call “electronic sell-thru”) grew by 10 percent and video-on-demand services from cable providers were up 8 percent.