Streaming services are killing off the DVD and Blu-ray industry

DVDs may be headed for the same fate as VHS cassette tapes, as consumers change their viewing habits and binge on a variety of video streaming services. The shift from discs to online streaming can be seen in Digital Entertainment Group’s year-end report, which found that US consumers spent nearly $US6 billion more on subscription services like Netflix and HBO Go last year than they did on DVD and Blu-ray.

As this chart by Statisa shows, sales of all physical formats of video – such as DVD and Blu-ray discs, DVD subscription services, and video kiosk rentals like RedBox – experienced a substantial decline in 2017. Interestingly, video-on-demand services also saw a 7% decline, underscoring the growth in “cord cutters” who are ditching their monthly cable plans for streaming options. Whether consumers are motivated by cost savings, ease-of-use or immediacy, it’s clear that internet has emerged as America’s favourite method for video distribution.

Chart of the day