July 12, 2005
The Deal With DVDs
Posted by Gordon Smith

Dreamworks is in trouble. The company's stock price is sliding, it's being investigated by the SEC, and majority owner Paul Allen wants to cash in ... but the market won't allow it. The big problem: DVD sales are sluggish. The same problem has hit Pixar. What is happening?

I have seen lots of theories, but here is mine, borne of personal experience. When I look at the wall of DVDs in my home while I am watching a program on our satellite television, I ask myself, "Why did we buy all of those?" We rarely watch any of them. We have, quite simply, reached a point of saturation. We may not be alone. The existence of pay per view movies on satellite, the ability to rent almost any video I want from Blockbuster (on the three occasions in a year when I get that urge), and the prospect of streaming video in the near future combine to dampen my enthusiasm for DVDs. Especially that last point: who wants to be stuck with an enormous library of discs that our children will view in the same light that we view 8-track tapes?

P.S. Here is a strangely contrarian forecast for European DVD sales.

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ยป DVD: Beyond Shrek2 and The Incredibles from theQview ...
"Much has been written lately about the decline in the DVD market utilizing the examples of Shrek2 an ..." [more] (Tracked on July 21, 2005 @ 22:32)
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