Thursday, November 4, 2010

The changing face of the DVD market

For the last several years, DVD sales have been the lifeblood of independent filmmakers. Bad economic conditions have slowed consumer spending. BluRay may have won the HD format war, but even avid collectors are starting to feel format fatigue, and are reluctant to purchase their collection yet again. And now the ever expanding array of Internet ready devices delivering streaming content to television looks poised to be the third strike against DVD's prominence in the marketplace. Fewer discs are being sold, in any format, and there are fewer places to buy. The remaining retail outlets are sticking with big budget Hollywood films, and even Best Buy recently announced that it would be reducing the floor space allocated to cd and DVD sales by as much as 50%.  Less rack space means fewer titles.

And then there is the reality of modern retail - the joke is "I've got good news, and bad news.  The good news is, we got an order from WalMart.  The bad news is, we got an order from WalMart".  So how can an order from a major retailer be bad news?  Simple - the price for getting your product into those retailers is that they have the right to return 100% of what was purchased - and they're not shy about doing so.  Typically, whatever is still on the shelves at the end of 90 days gets returned.

So where IS the market going? The trend looks to be heading towards "non-ownership" - online rentals and subscription streaming services are gaining market share - so keep that in mind when you get ready to take your film to market.

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