The Decline of DVD Sales

1165 Words3 Pages
bulb-icon

Recommended: Impact of the film industry

DVD sales have declined causing a current problem for Sony Corporations subsidiary Sony Pictures Entertainment. Sony Pictures Entertainment Inc. has seen a severe decline in revenue in the past recent months. DVD sales have declined to a level of severe concern, and as such left financial analysts and specialists in the industry deeply worried. We have taken to the field and conducted a number of interviews to decipher the basis of the rationale behind lack of DVD sales. Through the course of the following entailed research and our detailed interview analysis’s, we hypothesis that the drop in sales is due to a number of interrelated reasons including the current economic state and an advance in technologies giving consumers many alternative options to the DVD.

Literature Review

In the past, Production companies could predict how well a film would sell on DVD by how well it performed at the box office. This is no longer the case as box office hits such as “Indiana Jones and the kingdom of the crystal skull” and “Hancock” sold far below the expected amount of DVDs. This is a relevant problem due to DVDs being a big center of revenue for Sony Pictures Entertainment. Chairman and CEO Michael Lynton stated the following about the DVD market decreases, “it isn’t just contracting, and it’s becoming more volatile and unpredictable than it used to be”. Consumers are not only buying fewer DVDs but have also developed a new quality consciousness that is unforgiving. (Goldstein, 2009)

Unlike its competitors, Sony Pictures Entertainment gave in to Red Box in the first round and signed a contract to provide DVDs for rental on the same day they are released for sale. This was a potentially harmful decision considering the other producers ...

... middle of paper ...

... some insight into he decline in DVD sales. Most attribute their neglect to purchase DVDs to some aspect of price. We’ve heard that DVDs are too expensive and our interviewees mentioned the cheap Red box’s rentals. Quality has also been mentioned, as far as poor quality online streaming and even the quality of the production itself. This quality consciousness discussed in Goldstein’s article in the Los Angeles Times is apparent in the mind of our interviewees. Netflix, Red Box, and Online streaming have all been implicated as a replacement to the DVD by our interviewees. Technology certainly affects the decision making process of these motion picture consumers. These Interviews have validated our suspicions as well as the above literary assumptions that the decline in DVD sales is due to both the negative change in the economy and the advancements of technologies.

Show More
Related

  • FIL110 WA7

    641 Words  | 2 Pages

    Movies today are extremely expensive to make and are typically financed through either film studio contracts or from investors willing to take a risk. In order to be successful, movies need to be marketed and distributed either under contract by the film studios or by companies that specialize in such services. The aspects of financing, marketing and distribution of films have changed between the studio and independent systems over the years as the evolution of the film industry took place.

    Read More

  • Redbox SWOT Analyisis

    943 Words  | 2 Pages

    Gamble, J., & Thompson A. A. (2013). Redbox's Strategy in the Movie Rental Industry. In Essentials of strategic management: The quest for competitive advantage (pp. 295-303). New York, NY: McGraw-Hill/Irwin.

    Read More

  • The Great Imagination Heist Essay

    584 Words  | 2 Pages

    While Price does make a persuasive argument I cannot agree with the theme of his commentary. I have been a fervent viewer of television and films for years on end. Admittedly, much of what I watch on television qualifies as escapism or mere entertainment. I do not have a high degree of respect for the medium; however my love and admiration of film is intense. One could easily dismiss movies as superficial, unnecessarily violent spectacles, although such a viewpoint is distressingly pessimistic and myopic. In a given year, several films are released which have long-lasting effects on large numbers of individuals. These pictures speak to us as people and convey messages that are timely and timeless. Words are powerful, but visual images are overwhelming.

    Read More

  • Arundel Partners Case Analysis

    1495 Words  | 3 Pages

    As can be seen in exhibit to solution 2, we have estimated the per-film value of each production company. MCA Universal, Warner Brothers and Walt Disney Co are the only production companies that provide a positive per film value, with values of 9.89, 1.92, 12.56 million respectively. This value is calculated by dividing the net present value of all the movies by the total number of movies. We also calculated the average value of each production company based upon their share of the total number of movies produced. The companies with positive values were MCA Universal, Warner Brothers and Walt Disney Co is also the only production companies that provide a positive per film value, with values of 1.40, 0.37, 1.40 million respectively. These values are based on the average value per film multiplied by the company's average share of the industry.

    Read More

  • The Two-Tiered System of Allusions

    1605 Words  | 4 Pages

    In Hollywood today, most films can be categorized according to the genre system. There are action films, horror flicks, Westerns, comedies and the likes. On a broader scope, films are often separated into two categories: Hollywood films, and independent or foreign ‘art house’ films. Yet, this outlook, albeit superficial, was how many viewed films. Celebrity-packed blockbusters filled with action and drama, with the use of seamless top-of-the-line digital editing and special effects were considered ‘Hollywood films’. Films where unconventional themes like existentialism or paranoia, often with excessive violence or sex or a combination of both, with obvious attempts to displace its audiences from the film were often attributed with the generic label of ‘foreign’ or ‘art house’ cinema.

    Read More

  • The Australian Film Industry And The Australian Film Industry

    1536 Words  | 4 Pages

    The Australian Film Industry has been around since October 1896. The first full length feature film, in 1906 was ‘The Story of the Kelly Gang’. Australian Cinema has only become a much larger industry in like past 10 years with ‘Sanctum’ being Australia’s 10th largest film in the US Box Office history with its exceptional 3D technology and exquisite photography. ‘The Sapphires’ which also had a strong impact on Australian viewers did not reach the capacity of gross making in the US Box Office. The Australian Film Industry has become in crisis because without the Australian movies having an impact on the Australian viewers as a minimum, the money used to make the film will not have profited from the tickets bought to see the actual movie. In this essay I will explain how ‘Sanctum’ and ‘The Sapphires’ can be used in reference to the Australian Film Industry crisis and reason’s for how and why the Australian Film Industry has hit a crisis in film making.

    Read More

  • Greg Smith It's Just A Movie Summary

    656 Words  | 2 Pages

    In his essay, “It’s Just a Movie: A Teaching Essay for Introductory Media Classes”, Greg M. Smith argues that analyzing a film does not ruin, but enhances a movie-viewing experience; he supports his argument with supporting evidence. He addresses the careful planning required for movies. Messages are not meant to be telegrams. Audiences read into movies to understand basic plotlines. Viewers should examine works rather than society’s explanations. Each piece contributes to Smith’s argument, movies are worth scrutinizing.

    Read More

  • The Rise and Fall of Blockbuster

    1623 Words  | 4 Pages

    As advance technology of fiber-optic developed and is on the rise, everyday there is another story about entertaining movies on demand and streaming online is with ease. Those developments which let movie’s viewers sit in the comfort of their home or anywhere with access to the internet can stream instance movies with a push of a bottom. They no longer need to make a trip to the movie’s stores for movies rental and return, so that is why movie shops fail and filed for bankruptcy bring a symbolic close to the “let’s go rent a movie” era. Blockbuster LLC, formerly Blockbuster Entertainment Inc., both owned and franchised American-based giant provider of home movie and video game rental services through video rental stores, later adding movies by mail, streaming online and video on demand. Due to the peak of fiber-optic and competition from companies such as Netflix, Redbox, and GameFly, Blockbuster became the victim of digital media and filed for bankruptcy on September 23, 2010 due to significant lost in revenue.[3]

    Read More

  • PEST Analysis of Sony

    968 Words  | 2 Pages

    be affected by the increased use of new technology such as televisions. now being attached to DVD?s and VCR?S, downloading, buying illegal. products. The.. Processes? the need to cut costs, speed up production and compete.

    Read More

  • Orson Welles' The Magnificent Ambersons

    2357 Words  | 5 Pages

    “The biggest mistake we have made is to consider that films are primarily a form of entertainment. The film is the greatest medium since the invention of movable type for exchanging ideas and information, and it is no more at its best in light entertainment than literature is at its best in the light novel.” - Orson Welles

    Read More

  • Sony Case Study

    1953 Words  | 4 Pages

    Two new managers have been appointed at Sony in the last 15 years due to a number of developing problems, including the innovation ‘cogs’ within Sony slowing down, being forced into an aggressive pricing strategy, increased competition, losing the battle of VHS and Betamax, profit and sales remaining flat and the ongoing poor performance of Sony films (Mintzberg et al, 2003). Both managers initiated major strategic changes with varying degrees of success; firstly Nobuyuki Idei was appointed and initiated a major shift from analogue to digital technology, as there was a belief that Sony was falling behind the market in this respect. Idei also targeted the top position in the audio and visual industry, a universal standard in home computer devices and a new distribution infrastructure. He believed his job was the ‘regeneration of the entrepreneurial spirit’ (Mintzberg et al, 2003), believing it had been lost.

    Read More

  • The Impact of Digital Technology on the Film Industry

    1620 Words  | 4 Pages

    Culkin, Nigel & Randle, Keith 2003, Facing the Digital Future: The Implications of Digital Technology for the Film Industry, University of Hertfordshire, Hertfordshire.

    Read More

  • Film Industry: Then And Now

    1103 Words  | 3 Pages

    The film industry has always been somewhat of a dichotomy. Grounded firmly in both the worlds of art and business the balance of artistic expression and commercialization has been an issue throughout the history of filmmaking. The distinction of these two differing goals and the fact that neither has truly won out over the other in the span of the industry's existence, demonstrates a lot of information about the nature of capitalism.

    Read More

  • Computers and the Film Industry

    873 Words  | 2 Pages

    ...n able to reach otherwise. With unlimited possibilities and the creative minds in the world, the film industry is likely to consider seeing drastic changes. Like the world has in the past, peoples’ likes and dislikes will change with the ever-changing technological world. What we enjoy as a society in 2005 is likely to be considered as bland as we consider the black and white silent films, in the years to come.

    Read More

  • Advantages And Disadvantages Of Watching Movies In The Theater

    804 Words  | 2 Pages

    A movie theater has its advantages and disadvantages. One advantage is that people can see the showing of different movies that have been newly released. The disadvantage is that, that is all there is to it and nothing more. At home, you can control the variety and ways to watch a movie. People buy many movies to watch at home and it can be anything at any time even at any place. The only bad thing about it is that they cannot see any of the newest released movies that recently came out in theaters. There are two types of ways people watch movies at their homes. One way is people already own DVDs or have bought many of them and start watching them in their DVD players. The other ways are streaming a movie through the internet. For this to happen, people would mainly buy the monthly subscriptions such as Netflix, Hulu, or Amazon Prime. Through this subscription people do not only watch movies in their homes but they also watch television shows. The only downside is there is a very limited number of movies added onto these

    Read More

More about The Decline of DVD Sales

Open Document