The end of DVDs

Setting the table: The past 12 months have been rough for the DVD business. Redbox has shut down, and  Best Buy and Netflix no longer offer DVDs.

Mr. Screens’ Sentimental Corner: I remember buying my first DVD player so I could be a better undergraduate student at Ohio State watch The Matrix in 720P!!!

7 big questions re: the end of DVDs:
1) Are people still buying DVDs?
2) When did DVD sales surpass VHS?
3) How important were DVDs to the movie business?
4) How large was Redbox at its peak?
5) How large was Netflix’s DVD business at its peak?
6) What are the top-selling DVDs of all time?
7) How profitable were DVDs?

Big question #1: Are people still buying DVDs?

Quick answer: Yes, but total DVD revenue is down 90% since it peaked in 2011.

Total DVD revenue (% change) according to Digital Entertainment Group:
1) 2011 – $15.7B
2) 2023 – $1.5B (↓ 90%)

Big question #2: When did DVD sales surpass VHS?

Quick answer: 2001

Wow: Streaming started at zero in 2010 and surpassed DVDs 5 years later (2015).

Interesting: DVDs reached 80%+ penetration within 10 years.  It took VHS 17 years.

Big question #3: How important were DVDs to the movie business?

Share of movie revenue from DVDs according to Mark Gill:
1) 2018 – 25%
2) 2024 – 0.8%

Big question #4: How large was Redbox at its peak?

Quick answer: Redbox peaked in 2012 with 44K kiosks. At the time of their parent company’s bankruptcy (Chicken Soup for the Soul) in July, 24K were still active.

Quick math on Redbox at its peak:
1) 44K kiosks
2) 740M rentals
3) $1.9B in revenue
4) $2.57 per rental
5) 17K rentals/kiosk
6) 46 rentals/kiosk/day

Big question #5: How large was Netflix’s DVD business at its peak?

Quick answer: DVDs peaked for Netflix in 2012 at $1.1B.

Wow: I often forget how small Netflix was when they moved into streaming (2007).

A word from our sponsor: This is one of my favorite charts from my book (Screen Wars: Win the Battle for Attention with Convergent TV). The rise of Netflix plotted alongside Blockbuster’s collapse.

Big question #6: What are the top-selling DVDs of all time?

Top-selling DVDs of all time:
1) Finding Nemo (2003) – 39M
2) Cars (2006) – 23M
3) Spider-Man (2002) – 20M
4) The Dark Knight (2008) – 19M
5) Avatar (2009) – 19M
6) Shrek 2 (2004) – 18M
7) Transformers (2007) – 17M
8) Pirates of the Caribbean: The Curse of the Black Pearl (2003) – 17M
9) Pirates of the Caribbean: Dead Man’s Chest (2006) – 17M
10) The Incredibles (2004) – 16M

Top-selling VHS tapes of all time:
1) The Lion King (1995) – 32M
2) Aladdin (1993) – 30M
3) Snow White and the Seven Dwarfs (1994) – 28M
4) Titanic (1998) – 25M
5) Jurassic Park (1994) – 24M
6) Beauty and the Beast (1992) – 22M
7) Independence Day (1996) – 22M
8) Toy Story (1996) – 21M
9) Pochahontas (1996) – 17M
10) Cinderella (1988) – 17M

Big question #7: How profitable were DVDs?

Quick answer: The profit margin on selling DVDs was 2X higher than VHS.

Profit margin according to Ars Technica:
1) DVD – 50-60%
2) VHS – 20-30%

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