While the DVD was once a powerful second leg for the non-interactive entertainment industry to stand, it is quickly disappearing. New research from SNL says that DVD retail market in the U.S. shrank by 44 percent in 2010, down from $8 billion in 2008 and its peak of $10 billion in 2007.
Total number of units shipped in 2010 was 225 million. This is again a drastic decline from the 400 million in 2009 and 517 million in 2007.
Further discouraging, 2010 was the first year since 2007 when the total number of titles published has risen; the past two years, the number of releases increased while the wholesale prices rose for retailers. While average units sold per title increased both years, passing 1 million, they dropped to 545,000 in 2010.
Fox’s Avatar and Buena Vista’s Toy Story 3 stood tall above all others, selling more than 10 million units and earning over $200 million apiece. However, seven of the 15 best-selling titles in 2010 earned their studios less than $100 million in 2010; in 2009, none of the top 15 earned less than $100 million.
While Blu-ray sales are not accounted for, it is likely the convenience of digital that is sapping the sales of discs.
Source: AdWeek
