Squeezing Every Dime from DVDs

http://www.businessweek.com/magazine/content/09_42/b4151059074777.htm

The article Squeezing Every Dime from DVDs by Ronald Grover and Tom Lowry discusses the different ways that the movie industry in Hollywood is trying to get a "bigger piece of the pie" in terms of DVD monies amid a poor economy. With the economy the way it is, DVD sales have been declining and DVD rentals have been increasing. Time Warner, owner of Warner Bros', states that they want "better economics" from their current deal with Netflix. Redbox, a cheap per day rental system with kiosks around the country is also beginning to feel the wrath of Hollywood. They are being pressured into sharing a higher percentage of rental fees, limiting the number of titles available in each kiosk, and having to wait 45 days before new releases can be rented.

Executives in Hollywood and the DVD industry believe that DVD sales will increase when the economy rebounds but are also preparing for a future without physical discs. The different movie companies have begun trying different ways to release their products in order to find a more profitable system of delivery. Industry analysts believe that by Christmas, the popular website YouTube may be able to offer digital movie rentals straight from their website.

As a movie lover, I do agree that the DVD industry may be hurting a bit due to the economy. At the same time, executives in Hollywood have to realize that your average American citizen is also hurting for the very same reason. Personally, I have always rented DVDs first and will only purchase a copy for myself if I enjoy the movie afterwards. I believe that if the movie industry is successful in their efforts against Netflix, Redbox, etc., they may irreparably harm their image with the public and then even fewer will purchase DVDs again once the economy reverses course.