DVDs Are Dead: Is the Media Retailer Far Behind? - High-Def Digest Forums
Reply
 
Thread Tools Search this Thread Display Modes
  #1  
Old 02-24-2011, 04:48 PM
chipvideo's Avatar
Senior Member
Thread Starter
 
Join Date: Nov 2007
Posts: 8,793
Default DVDs Are Dead: Is the Media Retailer Far Behind?

Found an interesting article with a digital revenue prediction. ITs larger than what bd should be able to acheive in 3 years IMO.

http://seekingalpha.com/article/2547...d?source=yahoo

Back in 2000, Time Magazine asked, “Will everything be digital?”

“Digital,” as described by the author, meant “no movies or magazines or pieces of music… just 1s and 0s…”

Ten years later, the answer is pretty clear…

Digital entertainment sales are steadily chipping away at sales of physical media. And according to Don Reisinger of CNET.com, revenue from streaming entertainment will grow 174% over the next three years – from $2.3 billion to $6.3 billion.This is devastating news for stores that sell physical copies of movies and music. And for one New York City-based retailer, in particular, which counts on DVDs, Blu-ray discs and CDs for a whopping 80% of its business…

Trans World’s Mistake: Banking on Blu-RayTrans World Entertainment (Nasdaq: TWMC) operates F.Y.E. and Suncoast stores in shopping malls. The company currently derives most of its revenue from DVD and Blu-ray sales and CEO Bob Higgins recently said that he expects Blu-ray to continue to drive profits in 2011.

This may be true. But the trouble is that Blu-ray sales are also about to reach their peak. And by 2014, combined sales of DVDs and Blu-ray are expected to fall to a collective $4.6 billion.According to research firm IDC’s Danielle Levitas, “The Blu-ray market… has challenges ahead given increasing use of streamed video services…”
And it gets worse for Trans World. Because digital music downloads are rising, too…

Digital Destruction

Last year, downloads accounted for 29% of the music industry’s total revenue – up from 25% in 2009.

In fact, digital music sales have grown so much that Sony (NYSE: SNE) recently announced that it’s shutting down its largest CD-manufacturing facility. That’s big news… but hardly surprising, given that it said CD sales sank by 18% between 2008 and 2009.

What’s more, the trend shows no signs of slowing. And while unfortunate for Trans World – for whom CD sales account for 36% of revenue – the writing has been on the wall for nearly a decade, tracing back to when Apple (Nasdaq: AAPL) first released the iPod in 2001.

The growth of digital media is simply undeniable. And it’s kicking Trans World’s business to the curb…

Trans World Holiday Sales Plummet as Competitors Post Five-Year Highs

On January 31, Trans World reported that its 2010 holiday sales had slumped by 22% from the prior year.

Meanwhile, according to the International Council of Shopping Centers, other retailers experienced a sales rise, with overall sales up 4% to the highest levels since 2006.

Bottom line: Trans World is in big trouble. Its products are fast becoming irrelevant in the digital age. And over the coming years, unless it finds some way to get with the times, it will be left in the dust.

Disclosure: Investment U expressly forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees and agents of Investment U (and affiliated companies) must wait 24 hours after an initial trade recommendation is published on online - or 72 hours after a direct mail publication is sent - before acting on that recommendation.

Last edited by chipvideo; 02-24-2011 at 04:59 PM.
Reply With Quote
  #2  
Old 02-24-2011, 04:58 PM
chipvideo's Avatar
Senior Member
Thread Starter
 
Join Date: Nov 2007
Posts: 8,793
Default

No wonder all the big boys are jumping on board with digital.

"But the trouble is that Blu-ray sales are also about to reach their peak. And by 2014, combined sales of DVDs and Blu-ray are expected to fall to a collective $4.6 billion."

"Digital entertainment sales are steadily chipping away at sales of physical media. And according to Don Reisinger of CNET.com, revenue from streaming entertainment will grow 174% over the next three years – from $2.3 billion to $6.3 billion"
Reply With Quote
  #3  
Old 02-24-2011, 05:07 PM
Banned
 
Join Date: Jan 2010
Posts: 1,885
Default

Let me know when digital can make $100M+ in one week on a regular basis.
Reply With Quote
  #4  
Old 02-24-2011, 05:08 PM
vikingfan's Avatar
Senior Member
 
Join Date: Jun 2007
Posts: 1,947
Default

Anybody know what dvd sell through was for 2010, to see if this "prediction" has any merit.
Reply With Quote
  #5  
Old 02-24-2011, 05:08 PM
cheez avenger's Avatar
Senior Member
 
Join Date: Dec 2007
Posts: 13,694
Default

Wow, that's an end of the world scenario if I ever read one. Then again, Blu-ray media will be the last physical media format I will embrace. If it ever becomes the mainstream (digital) then it would have to top Blu-ray's specs. Will it?
Reply With Quote
  #6  
Old 02-24-2011, 05:15 PM
Lee Stewart's Avatar
Formerly "HDTV Addict"
 
Join Date: Jun 2007
Posts: 18,405
Default

Quote:
Originally Posted by vikingfan View Post
Anybody know what dvd sell through was for 2010, to see if this "prediction" has any merit.
Best guess = $7B

DEG EOY 2010 puts DVDs total at $14B and rentals were at something like $7B
Reply With Quote
  #7  
Old 02-24-2011, 05:15 PM
chipvideo's Avatar
Senior Member
Thread Starter
 
Join Date: Nov 2007
Posts: 8,793
Default

Quote:
Originally Posted by thesaintsarecoming View Post
Let me know when digital can make $100M+ in one week on a regular basis.
That would be 4 times higher than blu ray.
Reply With Quote
  #8  
Old 02-24-2011, 05:16 PM
chipvideo's Avatar
Senior Member
Thread Starter
 
Join Date: Nov 2007
Posts: 8,793
Default

Optical Discs decline is speeding up this year so far.
Reply With Quote
  #9  
Old 02-24-2011, 05:20 PM
Lee Stewart's Avatar
Formerly "HDTV Addict"
 
Join Date: Jun 2007
Posts: 18,405
Default

Quote:
Originally Posted by chipvideo View Post
Optical Discs decline is speeding up this year so far.
Last years total (DEG) was $16.3B A drop of $1B from 2009
Reply With Quote
  #10  
Old 02-24-2011, 05:20 PM
vikingfan's Avatar
Senior Member
 
Join Date: Jun 2007
Posts: 1,947
Default

Quote:
Originally Posted by Lee Stewart View Post
Best guess = $7B

DEG EOY 2010 puts DVDs total at $14B and rentals were at something like $7B
Saw the total on the DEG report. Do you remember where you saw the rental breakdown, and whether it broke down rental/sell thru for other years? would be good to see what the yearly rate of decline is for both.
Reply With Quote
Reply

Related Topics
Thread Thread Starter Forum Replies Last Post
Indiana Jones DVDs re-released in May, could Blu-ray versions be far behind? zombieflanders High Definition Smackdown 66 01-09-2008 12:04 PM
Playstation 3 still far behind XBOX 360 and Wii in US sales sarge76 High Definition Smackdown 18 12-14-2007 10:37 AM
Is green Mile headed to hd-dvd? Shawshank may not be far behind Batjokeriddle HD DVD Software General Discussion 7 08-07-2007 08:39 AM
HD DVD far behind in recordable media HarakoMeshi High Definition Smackdown 25 08-01-2007 10:34 PM
Blue Laser Costs Coming Down; Could PS3 Price Cut Be Far Behind? mitchelljd Gaming Smackdown 19 05-02-2007 04:08 AM


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off