Sales Plummet For Blockbuster, Jeffrey Katzenberg Pessimistic About Future Of DVD & Blu-ray

Could it get any worse for Blockbuster?

According to The Wrap, the video rental staple has hit yet another roadblock, and are reporting a net loss for the first quarter of the fiscal year, of just around $65.4 million, which is a far cry from this time last year, where the company reported a net profit of $27.7 million.

This turn was actually worse than expected, as analysts were expecting a net loss for the company equal to that of last year’s first quarter gain, just around 12 cents a share. Things are likely only going to get worse, with Netflix and Redbox becoming more and more of a force in this game we call video renting.

I know that personally, I haven’t been in a Blockbuster in at least a decade. I’ve learned to love local mom and pop rental shops, for not only their vast selection, but they also carry many classic films that Blockbuster just doesn’t feature. Also, with their high prices, and the advent of Netflix and Redbox, it seems like a matter of time before we see the demise of this titan of the business.

Also, it looks like people within the biz also see the writing on the wall for DVD and Blu-Ray sales.

According to Studio Briefing, DreamWorks Animation head, Jeffrey Katzenberg, has said that he expects the downturn in DVD and Blu-Ray sales to more than likely continue, and that this marks a ‘systematic’ change in the film industry.

He points changing consumer habits, particularly in how people tend to think of a $20 purchase more than they do others. Personally, I do tend to think of purchasing a new DVD or Blu-Ray disc as not only something that I feel is worthwhile, but also one that I tend to give a few moments to. However, I am one to shell out $50-80 for some of the bigger Criterion sets, so this is most likely something that I don’t really agree with. That said, the statistics are definitely there to show that sales are slowing, and with the continued financial troubles plaguing the country, I can’t help but think it can only get worse for the DVD industry.

Source: The Wrap / Studio Briefing

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2 Comments

  • I've been very concerned about the future of physical media, more specifically DVD/BD. Much in the way the CD sound quality is far superior to what you buy on iTunes, I prefer physical media for my cinema for precisely that reason, and for the pure fact that among the many random things I “collect,” I collect movies, and like to have something tangible. That said, I have kind of largely gone digital for TV shows (rarely buy box sets), but that is largely practicality, availability, and cost to number of times I will watch ratio.

    Every year analysts say it will be a “make or break” year for BD, DVD, etc. And this year is no exception. I understand fully the decline of brick-and-mortar rental stores. And I love the selection and convenience of online rental delivery, though I still visit the “indie” video stores, I long ago gave up on the mainstream ones for lack of carrying most of the films I actually wanted to rent.

    One constant comment I hear from a lot of people is that they truly don't really “get” why they should buy a movie on Blu-Ray or even get a Blu-Ray player. They spend all this money on an HD set, and they get HD cable or broadcast. And any store display can show the clear difference in HD disc media and DVD media, but so many people I know are so “eh” about cinema on BD, particularly when upscaling makes a lot of DVDs look so darned good. I've been perpetually perplexed by this, you spend all this money (granted, prices keep dropping) on an HDTV but you're using it for American Idol, instead of cinema, which screams for the best audio and picture available. (No offense, to TV, just stating what to me, is the obvious.)

  • I've been very concerned about the future of physical media, more specifically DVD/BD. Much in the way the CD sound quality is far superior to what you buy on iTunes, I prefer physical media for my cinema for precisely that reason, and for the pure fact that among the many random things I “collect,” I collect movies, and like to have something tangible. That said, I have kind of largely gone digital for TV shows (rarely buy box sets), but that is largely practicality, availability, and cost to number of times I will watch ratio.

    Every year analysts say it will be a “make or break” year for BD, DVD, etc. And this year is no exception. I understand fully the decline of brick-and-mortar rental stores. And I love the selection and convenience of online rental delivery, though I still visit the “indie” video stores, I long ago gave up on the mainstream ones for lack of carrying most of the films I actually wanted to rent.

    One constant comment I hear from a lot of people is that they truly don't really “get” why they should buy a movie on Blu-Ray or even get a Blu-Ray player. They spend all this money on an HD set, and they get HD cable or broadcast. And any store display can show the clear difference in HD disc media and DVD media, but so many people I know are so “eh” about cinema on BD, particularly when upscaling makes a lot of DVDs look so darned good. I've been perpetually perplexed by this, you spend all this money (granted, prices keep dropping) on an HDTV but you're using it for American Idol, instead of cinema, which screams for the best audio and picture available. (No offense, to TV, just stating what to me, is the obvious.)

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