DVD sales slowing down
Jul 6, 2005 Media & Advertising
End of the DVD Party? ( Business Week / Ronald Grover )
From the article: “Now small but troubling signs are emerging that the DVD market’s growth could be trailing off faster than Hollywood expected. On June 30, Pixar Animation Studios cut its earnings-per-share estimate for the second quarter to 10 cents from 15 cents, due to slower-than-expected DVD sales of its blockbuster The Incredibles. The stock of Dreamworks Animation dropped sharply in mid-May, after the studio reported that returns of its own blockbuster Shrek 2 left sales 5 million short of its forecasts.”
Although the article is from the US, I noticed a lot of unsold Shrek 2 and Incredibles DVD when strolling through shops in Melbourne as well. With the number of cinema goers declining it will be interesting to see how the movie execs will react to this. No doubt they will want to blame piracy, and this would certainly be a factor, but probably not as big as the studios would have you believe.