Arab Press

بالشعب و للشعب
Friday, Jun 20, 2025

The death of the DVD: Why sales dropped more than 86% in 13 years

The death of the DVD: Why sales dropped more than 86% in 13 years

Since 2008, DVD sales have declined more than 86%. A combination of the Great Recession, a rise in customers buying on-demand and digital copies of films and the launch of streaming services is what has caused DVD sales to plummet.
Since 2011, platforms like Netflix, Hulu and HBO have seen sales balloon 1,231% to $12.9 billion.

DVD sales have been on the decline for over a decade, but a slew of new streaming services and a shift in how consumers are watching movies and TV shows could be the final death knell for the technology.

The same can be said for Blu-Ray discs.

At its peak, DVD sales reached $16.3 billion and were 64% of the U.S. home video market. That was 2005. These days, DVD sales account for less than 10% of the total market, with total sales hitting $2.2 billion in 2018.

Blu-Ray discs, which have always been slightly more expensive than DVDs, launched in 2006. At most, Blu-Ray sales reached $2.37 billion in 2013, before falling to $1.8 billion in 2018. It’s likely that Blu-Ray sales fractionally impacted the decline of DVD sales, but the fact that DVD sales still outpace Blu-Ray sales shows it’s not the real culprit.

Instead, a combination of the Great Recession, a rise in customers buying on-demand and digital copies of films and the launch of streaming services is what has caused DVD sales to decline more than 86% in the last 13 years.

And that decline could get worse as more streaming services enter the market. Disney+, Peacock and HBO Max are all arriving within the next year. Apple TV+ rolled out on Nov. 1, and Disney+ arrives Tuesday.

Leading up to the economic downturn, there was a big boom in DVD sales. Between 2001 and 2005 customers had transitioned away from VHS and were buying up not only new films as they came out, but older films that were being released on DVD.

However, once customers had bought the DVD versions of those library films, their DVD spending started to decrease. So after hitting a high of $16.3 billion in DVD sales in 2005, there was a 3% drop in 2006. But, in 2007, DVD sales actually rose about half a percent.

The real inflection point was the Great Recession. From 2007 to 2008, DVD sales slumped 26%, falling to $11.6 billion from $15.7 billion. Bruce Nash, founder and president of Nash Information Services, said consumers ditched DVD spending as their disposable income shriveled, kicking off the demise of the DVD industry.

The U.S. home video market also slumped during the same period. After hitting a high of $25.2 billion in 2005, by the end of 2008, total sales of DVDs, Blu-Rays, on-demand video and digital had fallen 28% to $17.9 billion.

The DVD sales decline was compounded in the years after the economy had recovered because of the rise of video on-demand -renting and buying movies through cable subscriptions — and digital downloads began to grow in popularity.

Consumers could rent movies for as low as 99 cents and buy a movie outright for around $10. For comparison, DVD prices were around $20 and Blu-Rays were closer to $25. Many had adopted digital film purchases during the economic downturn because it was a cheaper option.

“What we’ve seen is that the digital market is very different from physical market,” Michael Smith, professor of information technology and marketing at Heinz College and Tepper School of Business, said. “And when someone moves from physical market to digital market, they move across all platforms. Once they go digital, they don’t go back to DVD.”

And as customers were transitioning to digital, streaming services also arrived on the scene. (Data on the subscription service model is only available starting in 2011.)

“The big fundamental shift here is that when you look at a film you want to watch, and maybe you missed it in theaters, 10 to 15 years ago, you can buy the DVD or rent from Blockbuster,” Nash said. “Now, I’ve got HBO and [the film is] going to be on HBO in a couple months. It’s not worth buying the DVD to watch it. I’ll just wait a bit.”

Since 2011, platforms like Netflix, Hulu and HBO have seen sales balloon 1,231% to $12.9 billion. In the meantime, DVD sales continued to slip, falling more than 67% between 2011 and 2018.

With the help of streaming services, the home video market has also been revived. In 2018, the U.S. market reached $23.2 billion.

“Now the question is: Is $25 billion just the natural cap?” Nash asked.
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Syria to Reconnect to Global Economy After 14 Years of Isolation
Saudi Arabia Faces Uncertainty Over Succession After Mohammed bin Salman
Israel Confirms Arming Gaza Clan to Counter Hamas Influence
Majority of French Voters View Macron's Presidency as a Failure
U.S. Reduces Military Presence in Syria
Trump Demands Iran End All Uranium Enrichment in Nuclear Talks
Iran Warns Europe Against Politicizing UN Nuclear Report
Businessman Mauled by Lion at Luxury Namibian Lodge
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
Head of Gaza Aid Group Resigns Amid Humanitarian Concerns
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
×