DVD Sales Drop 20% in Q1 2011, Netflix May be to Blame

Ryan Whitwam

When was the last time you bought a DVD? Net-who – oh, Netflix? Yeah, that's what we thought. You aren't alone in your gradual migration to streaming video content. A new report indicates that DVD sales have dropped off 20% in the first quarter of 2011 when compared to a year ago.

The studios have attempted to brush this off as a quirk of release cycles, but many observers are not so sure. At the same time DVD sales are dropping precipitously, Netflix subscriptions have shot up 33%. More and more, consumers prefer to pay a flat fee to get unlimited content, much of it streaming. This is a lesson Blockbuster has learned the hard way, one has to wonder how studios will cope.

It's not all gloom and doom, though. The first weeks of the second quarter of 2011 is off to a good start. Sales are up 20% so far. There were four hugely profitable releases in the first part of 2010, but no film made that same impact this year. Do you think Hollywood will see any movie releases later this year to make up the difference?

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