As we’ve noted before, DVD sales — Hollywood single most important revenue stream — have been petering out for years. Here’s official word: In 2007 they dropped 4.5%, the first time they’ve actually declined since the format was introduced 10 years ago. Reuters:
After essentially flat trends for 2005 and 2006, sales of films and TV shows on DVDs fell from 1.144 billion units in 2006, to 1.092 billion units in 2007, said Tom Adams, president of Adams Media Research, a California-based entertainment data firm. The figures include next-generation DVD sales.
And again, Hollywood has been counting on next-gen DVD sales to replace that revenue stream for years. But a silly format war between Sony’s (SNE) Blu-ray and Toshiba/Microsoft’s (MSFT) HD DVD have ensured that it won’t happen anytime soon — if ever.
Update: Looks like that format war will be over sooner than later.
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