A Moron In A Hurry

June 13, 2006

Hollywood’s Sacred Cow Growing Thin

Filed under: Uncategorized — nick @ 11:41 am

DVD sales are slowing, causing Hollywood to worry about how to maintain their current profit levels.  Statistics show that DVDs represent half of the revenue Hollywood generates from its movies and sales are expected to only grow 2% this year after double-digit growth only 2 years ago.  By 2010, DVD sales are expected to drop 20% from their current levels.

This shouldn’t be much of a surprise.  The DVD was originally introduced in America in 1997 with the movie Twister being the first DVD release.  It should be expected that over the course of 10 years Americans would be able to build up their DVD collections to the point where they are only concerned with keeping an eye out for newly released movies to buy.  And considering that most movies these days are dogs or are remakes of movies that most already own (and are terrible to boot), such should only further slow DVD sales.

Also, customers seem to be catching on to the favorite studio tactic of repackaging old movies in new ways, and the studios seem to realize this:

“We were shameless,” said Steve Beeks, the president of Lions Gate Entertainment, which has issued several new versions of the Terminator movies. “We would release special editions as long as people would buy them.”

Honestly, except for fanatics, is there really any reason to buy 4 or 5 different versions of the Star Wars Trilogy?

Hollywood’s hope lies in the the future of HD-DVDs (or Blu-ray, if it ever comes out).  With a new format and shiny new players that may or may not work with all the new HD-TVs on the market, Hollywood seems poised to push consumers towards restocking their collections with the new format.  Whether consumers, who may have finally gotten that last DVD to finish their collection, start buying up the new format is questionable.  As the saying goes, you can lead a man to a cow, but you can’t make him drink the milk.

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