Studios Hope High-Def Will Turnaround DVD Biz

News
Studios Hope High-Def Will Turnaround DVD Biz
Rentals and sales fell last year for the first time.
By Swanni

Washington, D.C. (January 23, 2008) -- For the first time ever, DVD sales and rentals declined last year, according to an article in Video Business.

The publication reports that consumers spent $22.9 billion on home video in 2007, a 3.1 percent decline from 2006.

However, studio executives are banking on the new high-def disc industry to boost sales this year and beyond. Rival formats Blu-ray and HD DVD have been battling it out for the new high-def disc audience.

“I think High-Definition is certainly the big opportunity, and our hope is that the market will get back to flat or have single-digit growth,” Lori MacPherson, Disney general manager of North America, told Video Business.

The disappointing DVD sales numbers has fueled the studios' effort to bring peace in the high-def DVD format war. Warner Bros. announced this month that it's endorsing Blu-ray exclusively, giving Blu-ray a 5-2 'major studio' advantage over HD DVD.

Warner officials cited a desire to end the war as a principal reason for endorsing Blu-ray.

Industry executives tell Video Business that the high-def format war is a major reason why the DVD business has been in decline.

“This was a good transition year,” said Mike Dunn, 20th Century Fox Home Entertainment president. “We had a primary issue of the consumer not investing in software that could be obsolete. (With Warner supporting Blu-ray), I think the most important thing is that the Blu-ray demand will be there.”

____________________________________________

____________________________________________

Click TVPredictions.com to see today's Swanni Sez.

© TVPredictions.com
____________________________________________

Swanni (Phillip Swann) is president and publisher of TVPredictions.com. He has been quoted in dozens of publications and broadcast outlets, including CNN, Fox News, Inside Edition, The New York Times, The Washington Post, The Chicago Tribune, The Financial Times, The Associated Press and The Hollywood Reporter. He can be reached at swann@tvpredictions.com or at 703-505-3064.

Click TVPredictions.com to read more news and features on TV technology.