DVD sales drop approx. 4% in 2007. Big surprise?
Posted: Sun Jan 06, 2008 7:30 am
It has been reported that DVD sales are down approximately 4% in 2007 than those in 2006. Warner Bros made the statement that research into the Hi-Def format "war" indicated that some customers were not only holding off buying into the Hi-Def market place, but were actually stopping or scaling back on their DVD purchases at the same time.
But really, is a 4% decrease that unexpected?
Firstly, considering most catalogue titles have been released on DVD by now, some released multiple times (I believe the 1st "Resident Evil" film, "Monty Python and the Holy Grail" and "The Evil Dead" are all on their fourth release!) does a drop of 4% actually mean many people are constantly double-dipping on titles that they love? 2007 didn't have 94% of all its DVD releases being new films and television programmes after all did it? A majority of its DVD releases were enhanced re-releases.
Secondly, the public have got wise to the Studios tendency to re-release better editions of films later. Perhaps the biggest proponent of this strategy is Fox. I cannot count on two hands the number of people I know who are holding off on a purchase of the somewhay lacklustre "The Simpsons Movie" DVD for now, because they "know" a better release will be available in the future. Fox's history seems to support this – recently they have announced the 2-Disc release of "Ice Age 2", after initially offering only a single disc release. It's only natural that the "double hit" strategy of releasing would eventually catch on with the general public. Fox repeatedly hold back content, Sony seems to double dip the most often (remember the days of Sony's Superbit releases when a normal 2 disc release would have enabled "Superbit" visuals and supplements in one package?) and often with minimal incentives to do so.
It's not as if the Hi-Def formats are immune to this paper-thin ploy of "double dipping". Warner Bros released "Troy" on HD DVD when they obviously knew the Director's Cut was in progress. They also released a year 1-5 "Harry Potter" box set "trunk" on both Hi-Def formats, when everybody knows that there are two more films to come in the future. On Blu-ray Fox releases only the PG-13 cut of "Die Hard 4.0" (when DVD gets two versions), virtually barebones releases of films like "Night at the Museum" and "Eragon" (when the DVDs gets a feature packed 2 disc sets) and also released a virtually barebones the theatrical cut of the first "Fantastic Four" movie a few short months before DVD got the extended cut one a 2 disc set with some truly amazing supplements. Other studios have also done similar, on both Hi-Def formats.
I know people who have bought a Hi-Def disc, already expecting to "double dip" in the future. I'm one of them
It's possible some people are sitting out on purchasing major new Day and Date titles on any format because they expect better releases in the future – especially those who only buy DVDs.
In Warner Bros defence, I do acknowledge that TV on DVD continues to be a growth area, and reasonably could be expected to keep overall DVD sales high. But even this doesn't quite add-up. 2006 probably saw TV on DVD peak as regards the quality of the content. By 2007 long valued and beloved TV shows had already finished or were finishing their DVD runs – such as "M*A*S*H" and "Seinfeld". Even popular continuing series are in later seasons – such as "24" and "Lost" – which traditionally sell less than first season sets. Yes, other shows have risen up to fill some of the holes (like "Heroes") but by 2007, most of the gold in studio's back catalogues had already been mined.
And going back to "double dipping" – later complete sets such as for "M*A*S*H", "Twin Peaks" and "The O.C." with additional supplements – showed customers that they were better off not buying TV shows now, but waiting for cheaper, complete series releases later. And of course, when they do buy them later - they're cheaper so result in a drop of studio revenue. A case of the Studios digging their own holes through their own behavior?
So does anyone here feel that a 4% drop-off in DVD sales is unreasonable?
But really, is a 4% decrease that unexpected?
Firstly, considering most catalogue titles have been released on DVD by now, some released multiple times (I believe the 1st "Resident Evil" film, "Monty Python and the Holy Grail" and "The Evil Dead" are all on their fourth release!) does a drop of 4% actually mean many people are constantly double-dipping on titles that they love? 2007 didn't have 94% of all its DVD releases being new films and television programmes after all did it? A majority of its DVD releases were enhanced re-releases.
Secondly, the public have got wise to the Studios tendency to re-release better editions of films later. Perhaps the biggest proponent of this strategy is Fox. I cannot count on two hands the number of people I know who are holding off on a purchase of the somewhay lacklustre "The Simpsons Movie" DVD for now, because they "know" a better release will be available in the future. Fox's history seems to support this – recently they have announced the 2-Disc release of "Ice Age 2", after initially offering only a single disc release. It's only natural that the "double hit" strategy of releasing would eventually catch on with the general public. Fox repeatedly hold back content, Sony seems to double dip the most often (remember the days of Sony's Superbit releases when a normal 2 disc release would have enabled "Superbit" visuals and supplements in one package?) and often with minimal incentives to do so.
It's not as if the Hi-Def formats are immune to this paper-thin ploy of "double dipping". Warner Bros released "Troy" on HD DVD when they obviously knew the Director's Cut was in progress. They also released a year 1-5 "Harry Potter" box set "trunk" on both Hi-Def formats, when everybody knows that there are two more films to come in the future. On Blu-ray Fox releases only the PG-13 cut of "Die Hard 4.0" (when DVD gets two versions), virtually barebones releases of films like "Night at the Museum" and "Eragon" (when the DVDs gets a feature packed 2 disc sets) and also released a virtually barebones the theatrical cut of the first "Fantastic Four" movie a few short months before DVD got the extended cut one a 2 disc set with some truly amazing supplements. Other studios have also done similar, on both Hi-Def formats.
I know people who have bought a Hi-Def disc, already expecting to "double dip" in the future. I'm one of them
It's possible some people are sitting out on purchasing major new Day and Date titles on any format because they expect better releases in the future – especially those who only buy DVDs.
In Warner Bros defence, I do acknowledge that TV on DVD continues to be a growth area, and reasonably could be expected to keep overall DVD sales high. But even this doesn't quite add-up. 2006 probably saw TV on DVD peak as regards the quality of the content. By 2007 long valued and beloved TV shows had already finished or were finishing their DVD runs – such as "M*A*S*H" and "Seinfeld". Even popular continuing series are in later seasons – such as "24" and "Lost" – which traditionally sell less than first season sets. Yes, other shows have risen up to fill some of the holes (like "Heroes") but by 2007, most of the gold in studio's back catalogues had already been mined.
And going back to "double dipping" – later complete sets such as for "M*A*S*H", "Twin Peaks" and "The O.C." with additional supplements – showed customers that they were better off not buying TV shows now, but waiting for cheaper, complete series releases later. And of course, when they do buy them later - they're cheaper so result in a drop of studio revenue. A case of the Studios digging their own holes through their own behavior?
So does anyone here feel that a 4% drop-off in DVD sales is unreasonable?
