DVDs Still Crushing Digital Distribution

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Companies like Apple (AAPL), Microsoft (MSFT), and Netflix (NFLX) are planning for a potential future where movies are distributed over the Internet. But right now, the vast majority of home video revenue is still coming from DVDs.

That’s true even for font/design nerds, who would presumably be more likely to download their movies: On a panel at South by Southwest, Helvetica producer/director Gary Hustwit said about 90% of his film’s at-home revenue has come from DVDs, with about 10% coming from digital services like Apple’s iTunes and Netflix. (He says he’s made about $60,000 from digital.)

Hustwit expects a better mix of digital revenue from his (excellent) new film, Objectified, which debuted at SXSW. But it’s still going to be a while before it catches up with DVD.

Super Size Me filmmaker Morgan Spurlock agrees. “The reason numbers aren’t released [for digital distribution revenues] is because the numbers are pathetic,” he said. “The numbers are sadly low in comparison to what we expect from film and television.”

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