You can’t say you weren’t warned. A year ago New York Times critic Dave Kehr was proclaiming the end of DVDs: Goodbye, DVD. Hello, Future. Unit sales were down 40%, Blockbuster had gone into bankruptcy, and Netflix was shifting from a mail-order purveyor of DVDs to “a streaming video company delivering a wide selection of TV shows and films over the Internet,” in the words of chief executive Reed Hastings.
Kehr pinned his hopes for home video on Blu-ray, citing that format’s ability to deliver high-definition versions of films. But despite industry efforts, Blu-ray has never really caught on with consumers. Released to the public in 2006, Blu-ray currently accounts for 23% of total disc sales, according to Home Video Magazine. When you examine the Top 20 Sellers last week, that proportion can drop even further—15% of sales for The Help were on Blu-ray, 11% of “Downton Abbey”—unless, like Disney did with Lady and the Tramp: Diamond Edition, you force buyers to purchase a Blu-ray package.
Especially for older library titles, studios are scaling back on disc releases. Warner Bros. (which also controls most of the classic MGM titles), Universal, 20th Century Fox, and Sony are now all offering what they refer to as “MOD” or “manufacturing on demand” titles, essentially burning new discs only after they are ordered. MOD discs lack the extras—and the longevity—of consumer discs, but in many cases they are now the only way to see obscure movies.
The industry seems to be heading toward forgoing discs of any kind, aiming instead for an environment in which viewers stream content to their computers and televisions. Cable companies have been offering “video on demand” options for some time, both at home and in hotels. Also in the hunt for viewers: Apple’s iTunes, Hulu, Wal-Mart’s VUDU, and Amazon Instant Video, Vimeo, and Netflix. Even PBS is into streaming. This week the broadcaster announced its first Online Film Festival.
Search engines want a piece of the action as well. Search for “Harry Potter” on Bing, and you will get an option to “Watch Now.” Google, meanwhile, will be happy to send you to YouTube.