Over the past year it has become obvious that the public’s fascination with the DVD format is waning. DVD sales, which had been robust up until the second quarter of 2007, are (depending on your point of view) either in a slump, or a much more serious downward spiral. Warner Bros. entertainment has decided to try a new tactic to increased DVD sales: creating both feature releases and direct-to-DVD versions of the same film simultaneously.
The first film to receive this “double team” effort is an adaptation of the popular novel “Watchmen.” The film will be directed by Zack Snyder, and is set to be released in March of 2009. But in an unusual marketing twist, Snyder is also simultaneously directing a related film based on the same novel that Warner will distribute exclusively in DVD format.
A second film using this same unconventional method is already in the planning stages, and assuming the sales figures are good, one imagines Warner may try this approach with many of their future releases.
According to a company spokesperson, Warner Bros. sees this approach as a way to build retail excitement for DVDs, while simultaneously marketing and promoting a feature film. The company is already the number one distributor of DVDs in the US, but after years of expansion and growth, U. S. DVD sales fell nearly 3 1/2 percent last year, the first major drop in the history of the format.
DVD sales are important because in some cases the sales of the little silver discs can account for 70% of the total revenue earned from a feature film. Big-budget Hollywood features such as last year’s “I Am Legend” rely heavily on DVD sales to recoup their massive filming budgets.
With overall sales of DVDs slightly down from last year, some major retailers are reevaluating their commitment to the format. Wal-Mart, for example, is rethinking the amount of shelf space they currently designate for DVDs. Other retailers are also hesitant because of the recent lackluster sales.
The big fear, of course, is that DVD sales will decline over time as films and television programs delivered via the Internet become more popular and practical. Devices such as the Apple TV box or the new Netflix streaming movie box make it easier for consumers to order and watch films without bothering with DVDs at all.
But for now, DVD sales are continuing to be profitable — if a little less so than in previous years. It will likely be a few more years before downloadable films become the norm. So there is still life in the DVD format yet, though eventually, they’ll be just another relic of the past, like cassette tapes or vinyl records.
DVDs stop working when scratched or weared out. In other words, they work for a while but they’re too cheap and that eventually catches up.
As such, investing in DVDs may not be such a wise decision. A hard drive array for home entertainment seems to make a lot more sense.
Comment by Claude Gelinas — July 4, 2008 @ 12:12 am