09-16-2011 10:29 AM #16
I see more use of MOD for "obscure" catalog titles both for DVD and BD.
I see most "popular" catalog titles getting just a BD release.
The only way Hollywood can promote BD over DVD for new releases is when the adoption rate is high, 70+% and that is many years away from now. B & M stores may drop DVD players but I believe E-Tailers will continue to sell the under $30 Colby branded players. They still sold twice as many DVD players as they did BD players in 2010 (according to DEG); 20M versus 10M.
Disney is experimenting with their Pirates 4 release. I am definitely looking foward to seeing how consumers react to this.
And I also believe that consumers have "fallen out of love" with Hollywood movies simply because there is so much junk coming out of Hollywood of late that people are turning to other sources of entertainment like social networking. How do you a retailer or rentailer compete against that? You are at the mercy of another company. . . They make junk - you sell or rent that junk. No one went to see the junk in the theaters. No one is going to buy the junk when it hits the home video market. They might pay a buck or a buck fifty to rent it for an evening because that is what they feel the junk is worth.
09-16-2011 11:12 AM #17
09-16-2011 11:15 AM #18
09-16-2011 11:40 AM #19
Coinstar No. 22 on ‘Fortune’ List
Redbox parent Coinstar has hit No. 22 on Fortune magazine’s 100 Fastest-Growing Companies list, up from No. 61 in 2010.Apple came in at No. 21, Netflix landed at No. 24 and Amazon was at No. 45.
09-16-2011 11:47 AM #20
09-16-2011 12:45 PM #21RIP Kosty you are missed.
09-16-2011 01:10 PM #22
A lot of catalog DVD sales are low price units and relatively low margin compared to new releases.
DVD even at low prices are still higher margin than most consumer product categories but the new release movies at higher price points and higher margins are where the profits really are.
That is also by design where Blu-ray has made the greatest inroads in new releases and Blu-ray new releases are even higher margin than the DVD versions.
DVD titles that have been available for many many years do not sell much per title at all anymore and are kind of a grey goo filler for the most part on the shelves with rotating inventory. Blu-ray catalog and repackaged multiple movie DVD skus will more and more displace most single movie DVD catalog titles and most DVD stock will become TV shows and recent DVD releases.
But more and more Blu-ray catalog and recent releases will be stocked at brick and mortar retailers to match the growing Blu-ray ownership base and household penetration gains as Blu-ray is a profitable high margin product that also is an impulse buy at the point of sale..
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09-16-2011 01:17 PM #23
09-16-2011 05:14 PM #24Sony BDP-S1, Toshiba A3, Xbox HD DVD Addon. Samsung 1600, Insignia BR W/Netflix!
09-16-2011 05:20 PM #25
09-16-2011 06:01 PM #26Sony BDP-S1, Toshiba A3, Xbox HD DVD Addon. Samsung 1600, Insignia BR W/Netflix!
09-16-2011 06:04 PM #27
Actually thinking about it Lee. My wife and kids have rented a VOD movie about 5 times in the last couple of months. That's a real change in my household. We never used to use that service. Hmmm...Sony BDP-S1, Toshiba A3, Xbox HD DVD Addon. Samsung 1600, Insignia BR W/Netflix!
09-16-2011 09:15 PM #28Wal-Mart is always a big seller for product which may have almost zero profit on it, and they too may be shrinking their floor space for optical discs. (not sure)
Walmart didn't get to be Walmart without understanding profit margins. If it's not selling...the shelf space goes to something that is.
But, in 5 years, with DVDs current decline rate, and BDs growth rate, neither of which I believe will stay 'the same', BD may be outselling DVD in total revenue. And the majority of DVD catalog sales may come from those places which can keep them in stock (online).
It's entirely speculation, but how much does come from Wal-Mart? How much are the studios seeing in profits? How much of Wal-Marts sales of DVDs are new releases in stores? How many from bargain bins? How much from online purchases?
Amazon numbers are online exclusively. We all know that, so they are easier to figure out. But, if you want Stargate, you don't have to go to a store to hope they have it on BD or DVD, you get it, guaranteed, online... typically at the best price. So, will catalog titles have any place on store shelves?= 22
Dumped Dish and moved over to DirecTV mostly to get 3D content.
DVD = 500+
09-16-2011 09:32 PM #29
09-16-2011 09:34 PM #30
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