Walking through my local Movie Exchange store looking for an obscure movie, which I never found, got me to thinking if DVD sales have declined due to Video on Demand. So, after my failed attempt on locating the movie I was searching for, I go home and research DVD sales. As I expected, DVD sales are on the decline.
Movie studios have lost billions of dollars in home video sales while online video sales such as Netflix and other video on demand has steadily increased. With the arrival of video on demand, along with Netflix and Redbox decline in DVD requests, the results have been devastating for DVD sales. Cable and satellite companies have seen an increase of video on demand (VOD) purchases and Netflix recently reduced its DVD service and increased its streaming availability. Redbox, additionally, has seen a moderate decline in DVD rental kiosks. The future for DVDs in the movie and entertainment industry is on shaky ground which in turn affects sales and job loss for those in the entertainment industry.
Jobs are a hot topic on both the domestic and political front. On researching the decline of DVD sales, two companies stood out. Both Disney and Sony have had to cut jobs on DVD manufacturing. In the last few years, Disney has cut over 200 jobs and Sony has cut 450 jobs. Both companies blame job losses on piracy and increases in video on demand.
Excitement in the video on demand technology has turned DVD buyers into streaming enthusiasts. Cable and satellite companies in the video on demand arena remain the intermediary between the viewer and the movie studios. Netflix, Redbox, and even Walmart’s streaming service called VUDU are access points for media entertainment. If these cable providers or media streaming companies start making and distributing their own movies, Hollywood could then see a decline in their own existence and more studio companies like Disney and Sony will lay off more DVD manufacturing employees.
DVDs are on the road to being a thing of the past, much like VCR tapes. I don’t however, see that happening any time soon. Streaming is a great technology for on the go, but there will always be the need for a permanent hard copy.
