Not Many Hoorays in Hollywood: DVD Sales Slump, Digital Distribution Looks Like a Bust

From SeekingAlpha: “Here’s a good reason for the movie studios to worry: 2007 could be the first year in which consumer spending on DVDs actually declines. Richard Greenfield, an analyst with Pali Research, addressed that issue and a few others in a research note on Friday.

The basic issue on DVD sales, Greenfield reports, is that there has been a decline in catalog sales, as the “halo effect” from an expanding DVD consumer base is over. In short, almost everyone now has a DVD player, and they’ve replaced their VHS catalog titles - so now the market will be driven largely by the ability of the studios to produce hits.”