In the past, Production companies could predict how well a film would sell on DVD by how well it performed at the box office. This is no longer the case as box office hits such as “Indiana Jones and the kingdom of the crystal skull” and “Hancock” sold far below the expected amount of DVDs. This is a relevant problem due to DVDs being a big center of revenue for Sony Pictures Entertainment. Chairman and CEO Michael Lynton stated the following about the DVD market decreases, “it isn’t just contracting, and it’s becoming more volatile and unpredictable than it used to be”. Consumers are not only buying fewer DVDs but have also developed a new quality consciousness that is unforgiving. (Goldstein, 2009)
Unlike its competitors, Sony Pictures Entertainment gave in to Red Box in the first round and signed a contract to provide DVDs for rental on the same day they are released for sale. This was a potentially harmful decision considering the other producers ...
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... some insight into he decline in DVD sales. Most attribute their neglect to purchase DVDs to some aspect of price. We’ve heard that DVDs are too expensive and our interviewees mentioned the cheap Red box’s rentals. Quality has also been mentioned, as far as poor quality online streaming and even the quality of the production itself. This quality consciousness discussed in Goldstein’s article in the Los Angeles Times is apparent in the mind of our interviewees. Netflix, Red Box, and Online streaming have all been implicated as a replacement to the DVD by our interviewees. Technology certainly affects the decision making process of these motion picture consumers. These Interviews have validated our suspicions as well as the above literary assumptions that the decline in DVD sales is due to both the negative change in the economy and the advancements of technologies.
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