Is the DVD Business Really on Life Support?

Ticket sales at the movie theaters were up last year as Hollywood saw their best year ever earning over $10 Billion. So what does this say for the DVD industry and Blu-ray in particular -- this could spell disaster. As Blu-ray titles are becoming more frequent for new movies, studios are hesitant to put the classics on Blu unless they are certain that the timing is just right. Three series that come to mind that are still not released are Back To The Future, Aliens and Star Wars, all owned by Fox. It is obvious when they are put to Blu they will be tied together in a magnificent and pricey box set.

Blu-ray player pricing is dropping everyday, however, until we see Blu devices as standard issue in the PC market, the studios have their work cut out for themselves. DVD sales dropped by 9% in 2008 to $14.5 billion. Some people do prefer to watch movies at home, particularly because it's cheaper. There is no big deal to download a movie for $5.00 and stop it if you don't like it half way through.

The conversation is not which medium is best but rather how can DVD's revenue increase and transition into a pure Blu market. Studios rely on DVD profits to prolong the life of a title year after year. But with both Blockbuster and Netflix offering streaming movies to compete with on-demand cable services the storefront model will be fading to black quick. Blockbuster announced that 2011 could be the end of the corner store model.

Unless DVD sales start to pick up the studios will have to be more selective on which movies they actually make, as they are no longer guaranteed a long line of revenue to make up for a poor box office take. Technology is overwhelming the DVD marketplace. Flat screens from a year ago are now considered Fat Screens and add computers and 3-D technology to the mix and you find yourself behind the tech curve at the moment your credit card is swiped.

2010 should be an interesting year for Hollywood. Obviously the 3-D model works as a way to increase ticket sales and make movies an experience once again. Only time will tell if Avatar can bring the life back into the DVD market the way it did for Hollywood last year.

Friends Link : TV buying guide