DVD Sales Plummet.....Blu Ray not enuf to make up


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The article below is copied from a Yahoo tech article.

http://tech.yahoo.com/blogs/null/123584

DVD sales plummet, Blu-ray unable to save the day

The numbers for 2008 are in and they don't look good: DVD sales are now showing the first signs that they're about to go into free-fall, just like sales of CDs did a few years ago.

For the second year running, DVD sales have slipped. After hitting a high of $24.1 billion in 2006, the total sales volume his $21.6 billion in 2008, a total decline of about 10 percent off the 2006 high.

DVD's purported savior -- Blu-ray -- has been unable to rise to the rescue so far. Blu-ray (and leftover HD DVD) disc sales hit just $750 million last year, which doesn't nearly make up for the loss in sales of DVD media. Since Blu-ray discs are more expensive than DVDs, the overall unit sales decline is even more worrisome for Hollywood -- and some studios are seeing income plummet accordingly. For example, Fox operating income dropped 72 percent last year after seeing DVD sales fall just 15 percent.

Hits aren't going to save the day, either: Warner Bros. had the #1 selling DVD of 2008, The Dark Knight, but saw overall DVD sales drop 24 percent nonetheless. Disney -- running out of "classics from the vault" to reissue -- had a whopping 33 percent drop in DVD sales last year.

Naturally, the recession is being targeted as the culprit for all the bad news, but pundits say other factors are at play. One big issue? Former Fox and Disney executive Bill Mechanic says that the introduction of Blu-ray media has led studios to radically cut prices on their older DVDs as they attempt to position Blu-ray as a superior good. That plan may have backfired, instead driving consumers to snap up cheap DVDs instead. Says Mechanic, "It’s devalued the libraries. If you can buy Titanic for $4.99 versus $19.99 for a new, but lesser, movie on Blu-ray, consumers will say, 'Well, wait a minute…'"

To be sure, Blu-ray is growing -- up 250 percent since 2007 -- but it still represents less than 3.5 percent of the overall market. Analysts now wonder whether Blu-ray will be able to pick up steam fast enough -- or if the future has already been handed over to online downloading and streaming alternatives. With companies like Netflix rushing into streaming as quickly as possible, that certainly seems like a strong possibility.
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mitch4t
Bar81 either of the options I mention offer 1080p resolution, and Dolby Digital Sound through digital outs into your favorite DAC. True, not the new lossless high definition sound of Blu-Ray. While I am a true believer in "good as you can get" sound for music, it is not as much of a priority for me for movies. As you note, for some of us, things are different. But given that until very recently 1080i was all you could do, and most movies had, at best Dolby Digital or DTS sound, this is pretty darn good and much more convenient.
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I'm not interested in 'pretty darn good'. I want the image and the sound to kick ass. That's why we call it home theater.

Streaming just doesn't cut it.
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fair enough. some people go full bore on the music, some do it with the movies, some both. that's the beauty of the hobby -- choices
I do agree BluRay is only marginally better and not enough for most to adopt both the new player and its higher priced movies and as long as DVD is still around Blu Ray isnt gonna compete fast enough to help any studio. If somebody wants to suggest BR is way better then go for it but I own HDVD and borrowed BR players and also view them on a 92in HD Projector, while its better its not enough better than my Lexicon 480P to fuss over.......nor is the sound (which before you jump in was wired from internal decoder into Multi channel RCA).
All the same I will likely go BR this year as I simply am a nerd and want it.
Next we will see a bailout for Hollywood or perhaps some stupid voucher to buy a BluRay player but as long as movies cost what they do and the stars command insane salaries for often really crap material and performance I will have no tears for any of them.
I don't see the value in purchasing movies anymore regardless of BR (fantastic!) or DVD. We use our Blockbuster subscription by mail or walk-in to basically watch any movie we want anytime we want. We have a pretty decent DVD collection but rarely use it, maybe a couple time a month.