Noah Patel
DVDs and Blu-rays were once the go-to format for home entertainment, but the rise of streaming services has seen a decline in DVD sales of more than 86% since 2008. While DVD sales have been on a downward trajectory for over a decade, some consumers still prefer to buy DVDs and Blu-rays, and rental services like Redbox continue to offer new releases on the same day they go on sale in physical stores. This raises the question: do DVDs go on sale first, or can you rent them before purchasing? The answer may depend on personal preference, as well as the availability of DVDs for rent or sale.
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What You'll Learn
Redbox kiosks offer rentals on the same day DVDs go on sale in stores
In 2018, Redbox, a DVD and Blu-ray rental kiosk operator, announced a deal with Warner Bros. that allowed it to offer new releases on the same day they went on sale in physical retail stores. Prior to this deal, Redbox had to wait seven days after the home-video release to offer new Warner Bros. titles.
This deal with Warner Bros. meant that Redbox now had same-day deals with almost all of the major studios, including Sony Pictures Entertainment, Universal Pictures, and Lionsgate. Notably, Redbox did not have a distribution deal with Disney at the time.
Redbox's rental kiosks offered customers a convenient way to rent DVDs and Blu-rays, with more than 41,500 kiosks located across the United States. These kiosks were typically found in retail stores such as convenience stores, supermarkets, and pharmacies, providing easy access for customers.
While streaming services have become a popular way to consume media, there is still a demand for DVD and Blu-ray rentals and purchases. According to a survey by the NPD Group, nearly a third of respondents in the United States rented DVDs and Blu-rays in addition to using subscription streaming services.
Despite the decline in DVD sales and the rise of streaming, Redbox's deal with Warner Bros. and other major studios highlights the continued interest in physical media rentals.
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DVD sales declined by 86% since 2008 due to streaming services
DVDs were introduced in the late 1990s, offering higher video quality and interactive features than VHS tapes. They swiftly overtook videotapes as the go-to format for home entertainment, with DVD sales peaking at $16 billion in 2005. Physical media was a lucrative source of revenue for movie studios, as consumers would often buy the same film multiple times on different formats.
However, DVD sales have been on a downward trajectory since 2008, declining by more than 86% over the next 13 years. This decline was driven by several factors, including the Great Recession, which caused a significant drop in consumer spending on DVDs, and the rise of streaming services. The launch of Netflix's streaming service in 2007, followed by other platforms like Hulu and HBO, disrupted the market by offering consumers convenient and affordable access to a vast selection of films and TV shows. As a result, DVD sales plummeted as streaming subscriptions, digital rentals, and digital purchases became increasingly popular.
While some consumers still rent and purchase DVDs, the shift to streaming has significantly impacted the home entertainment industry. Streaming services provide benefits such as unlimited content, on-demand viewing, and lower costs compared to buying multiple DVDs. However, streaming also has limitations, such as the need for a reliable internet connection and the unavailability of specific titles on certain platforms.
Despite the decline, DVDs have experienced a minor revival recently, with some collectors seeking high-quality cases and others viewing DVDs as a symbol of self-expression. Additionally, DVDs offer advantages over streaming, including superior picture and audio quality, 4K resolution, and a more reliable viewing experience without the need for compression. While the future of DVDs is uncertain, with companies like Samsung discontinuing Blu-ray players, the format has not become obsolete, and rental stations like Redbox continue to offer new releases.
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Consumers are playing a pivotal role in the future of the filmmaking industry
The future of the filmmaking industry is heavily influenced by consumer behaviour and preferences. The rise of streaming services has undoubtedly impacted DVD sales, with a decline of over 86% since 2008. This shift towards streaming platforms like Netflix, Hulu, and Amazon Prime has made consumers question the practicality of owning physical DVDs. With a monthly subscription, viewers can access a vast array of content without the need for physical discs.
However, consumers continue to play a critical role in shaping the industry. While DVD sales have plummeted, there is a notable minority still investing in physical discs. Some consumers prefer the superior viewing experience of DVDs and Blu-rays, which offer 4K resolution and uncompressed audio and video. The reliability of physical discs, especially in the face of unreliable internet connections, is another factor in their favour. Additionally, the desire for self-expression and the appeal of collectible DVD cases contribute to the ongoing demand for DVDs.
The presence of DVD rental kiosks, such as Redbox, further highlights consumer behaviour. Redbox operates over 41,500 kiosks, indicating that a significant number of people still rent DVDs, even alongside subscription services. This demand has led to deals with major studios, allowing Redbox to offer new releases on the same day as physical retail stores.
The impact of consumer behaviour is also evident in the resurgence of vinyl records, demonstrating that physical media can make a comeback. While DVD sales may never reach their previous heights, consumers could drive a revival or niche market. Consumers' purchasing decisions and preferences for streaming, renting, or physical discs will ultimately shape how the filmmaking industry evolves.
In conclusion, consumers are indeed pivotal in the future of the filmmaking industry. Their choices between streaming, renting, and purchasing DVDs influence the industry's direction. While streaming has caused a significant shift away from DVDs, consumer behaviour suggests that physical discs may still have a place in the evolving landscape of home entertainment.
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DVD sales peaked at $16 billion in 2005
DVDs were introduced in the late 1990s, offering higher video quality and interactive features than VHS tapes. They swiftly overtook videotapes as the go-to format for home entertainment. DVD sales peaked at $16 billion in 2005, constituting 64% of the US home video market. This was a golden age for physical media, as studios could sell the same film to the same consumer multiple times. For example, a fan of The Lion King might have paid Disney for a movie ticket, a VHS purchase, a DVD purchase, and a Blu-ray purchase. That's at least $50 of spending on a single film.
However, the rise of streaming services and digital rentals in the late 2000s and early 2010s led to a decline in DVD sales. In 2007, Netflix launched its streaming service, providing consumers with an expansive selection of films and TV shows for a low monthly fee. As a result, DVD sales plummeted as streaming subscriptions, digital rentals, and digital purchases grew to a combined ~$35 billion in annual sales. The convenience and affordability of streaming platforms made the idea of owning physical DVDs seem impractical to many consumers.
The impact of streaming on DVD sales is evident in the numbers. DVD sales have declined by 86% since 2008. In 2019, DVD sales accounted for less than 10% of the total home video market, with total sales of $2.2 billion compared to $23.2 billion for the US market as a whole. The decline in DVD sales has also affected retailers, with Best Buy announcing in October 2023 that it would discontinue DVD and Blu-ray sales both in-store and online starting in early 2024. Netflix also ended its DVD rental service in September 2023, marking an end to its 25 years of physical media renting.
Despite the decline in DVD sales, some consumers remain loyal to physical media. DVDs and Blu-rays offer advantages such as 4K resolution and a more reliable viewing experience, especially in cases of unstable internet connections. Additionally, streaming services may not have specific titles available for streaming, whereas owning a physical DVD guarantees access to the desired content. While DVD sales may never return to their 2005 peak, there is still a market for physical media, especially among collectors and enthusiasts seeking high-quality cases and artwork.
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It is legal to rent out lawfully acquired DVD movies
The rise of streaming services has led to a decline in DVD sales. In 2008, DVD sales had declined by 86%. Netflix, for example, ended its DVD rental service in September 2023. Best Buy also announced that it would stop selling DVDs and Blu-rays in 2024. Despite this, DVDs have experienced a minor revival, with some consumers collecting DVDs as a symbol of self-expression.
Some people still prefer DVDs and Blu-rays over streaming services because they offer a more reliable viewing experience and superior video quality. DVDs also offer 4K resolution, which outperforms the industry standard of 1080p.
In the United States, there is no requirement to pay license fees to rent out DVDs as long as they are lawfully acquired and not streamed, copied, or sent through the mail. However, if you intend to run a DVD rental business, you may need to purchase a license to rent movies from the distributor. There have been no known civil infringement cases brought against anyone who rents or sells lawfully procured copies of DVD movies.
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Frequently asked questions
It depends on the retailer. Some companies, such as Redbox, have deals with major studios to offer new releases on the same day they go on sale in physical retail stores.
Yes, many people still rent DVDs. According to a survey by the NPD Group, nearly a third of respondents in the United States said they rent DVDs and Blu-rays in addition to using subscription services like Netflix.
There are over 41,500 Redbox kiosks in the United States, which is more than the number of Starbucks and McDonald's locations combined. You can also rent DVDs from Netflix's streaming service.
Yes, it is legal to rent out DVDs that you have purchased. However, it is illegal to distribute unlicensed copies of DVD movies.
DVD sales have declined by more than 86% since 2008 due to the rise of streaming services. However, there has been a minor revival in DVD collecting, driven by consumers' desire for self-expression.
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