
The Hollywood Reporter has
an article about declining DVD sales this year and my trip last week to visit my folks offers an explanation I think.
Selling a home in Los Angeles and moving pretty much anywhere else (in their case an island near Tacoma, WA) means you move up one income class -- middle class becomes upper middle class.
That means they had a nice hi-def big screen TV to go with their house. Being the Pacific Northwest, we had plenty of excuse to sit inside and watch television. And hi-def does look
sweet. I just couldn't bring myself to watch any of the non-hi-def programs on those lesser cable stations while I was there.
We also wanted to rent a few movies -- but they didn't have a hi-def DVD player yet, so we stuck mostly to the hi-def movies-on-demand offered by the cable company. It cost a bit more than a rental, but the panoramic views of mountains and rivers looked sparkling.
They were also just about to purchase
Live Free or Die Hard -- because that's the kind of movie you'd like to test your nifty new hi-def TV on.
But here's why DVD sales are down. They'd need to get a new DVD player for that -- and they were more than willing to pay for one -- but which one? I was suggesting HD since it seemed that the big Wal-Mart $99 sale might mark a turning point -- but that's a bit of a gamble. And later, it occured to me that
Live Free or Die Hard might not even be on HD (which I think it isn't -- only Blu-ray). That would really suck, buying a hi-def DVD player and having about half the new releases not even be available for it -- then having maybe a 50% chance two years from now of having bet wrong, and there being no new releases for it.
So, unless you want to throw away cash on two high-end DVD players, you don't buy any. And even people who can afford to do so won't simply out of principle.
Then you think of buying the plain old DVD and watching Bruce kick ass. But you've seen the promised land; you're ruined for the old stuff. So you catch a rental of hi-def on-demand when it comes around -
- and don't buy any DVDs at all, since you know you're just going to want the HD version when there's finally a standard. I don't even have an HD TV and I'm not going to buy any more DVDs because I too have seen the promised land.
Thus, DVD rentals doing well, maybe even up, and DVD sales tanking.
And Wal-Mart knows this. They're seeing this vast sum of HD DVD money being left on the table this holiday season because there's no standard -- that's why they're trying to force a standard by selling HD players at cost.