Change in how consumers watch movies could kill DVDs forever.
The sale of DVDs has continued to decline for more than a decade. The recent entrance of streaming services and a change in the behavior of consumers will hit the nail on the coffin soon. Blu-Ray discs are also in the same category. DVD sales have surpassed $16.3 billion at its peak. 64% of this number came from the U.S. home video market in 2005. Today, the sales of DVDs account for a mere 10% of the market with the total sales in 2018 hitting $2.2 billion.
DVD sales have declined steadily in the past 13 years
Blu-ray discs are more expensive than their smaller counterparts, DVDs. And at its peak, the sales of Blu-Ray discs reached $2.37 billion before it fell to $1.8 billion sometime in 2018. It is possible that the sales of Blu-Ray discs affected the decline of DVDs, but it is clear that it is not the reason. Experts say it is caused by a combination of a rise in consumers buying digital and on-demand copies of movies, the great recession, and the launch on several streaming services.
This decline could be worse as even more streaming services join the train. Apple TV+ recently rolled out with Disney+, HBO Max and Peacock arriving next year. Between 2001 and 2005, there was a big boom in the DVD sales market when consumers shifted from VHS to DVDs. There was a 3% drop in 2006, but it took a better turn in the following year. The great recession was the real inflection point from 2007 to 2008. Sales of DVDs slumped by 26% from $15.7 billion to $11.6 billion. During that time, consumers got rid of their DVD spending when their disposable income dropped dramatically. This was the official demise of the industry.