Business Week has a great article onlinethat suggests that movie companies have not learned the lessons of the music industry. DVD sales are declining because the format is too expensive according to evidence provided by Business Week readers. Both Dreamworks and Pixar have noticed a decline in disc sales. Box office hits like The Incredibles have underperformed in the retail environment.
Substitute products including cheap rentals is threatening the film studios licence to print money, expensive DVDs and a proliferation of ‘special editions’ are leaving customers feeling ripped off and shy of making the same mistakes in the future.