DVD movie sales decline suggests online chance

The crunch is beginning to impact the DVD movie market, as consumers turn to online services, spurn luxury items as recession bites and thoughts turn to Christmas, with some optimistic the fall in demand for pre-recorded DVD titles (films) suggests a move to Blu-ray (it won’t).

Taiwan’s pre-recorded DVD manufacturers have revealed orders for DVD films have fallen, “short of their expectations by 30-40%”, a report explains.

It appears that pre-Christmas demand estimates are waay down, with manufacturers anticipated September/October spike in orders from Hollywood Studios failing to appear.

In other words, we can likely expect weaker than standard DVD sales results in future movie studio quarterly announcements and look forward to the usual range of “stack ’em high, sell ’em cheap” promotions as studios seek to bolster revenue this season.

The original report continues to speculate that price cuts on Blu-ray movie discs and players is generating a spike in demand for that format, something I think’s unlikely as consumer budgets continue to be impacted by rising unemployment and price hikes in food and energy bills.

What is likely is that demand for online films is likely to rise, based entirely on convenience, accessibility and the making available of wider tranches of content through existing platforms.

For households who purchase two or three films a month, the advantage of digital services will be that these can be accessed using existing equipment, thus side-stepping the need to invest $200 in a limited function player.

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