DVD Biz Plateaus

     July 20, 2005

Posted by Mr. Beaks

Predictably mirroring the VHS explosion;of the 1980’s, Variety is reporting this morning that the home video market, fueled;to record profits by;the rapid growth of DVD, has hit the wall.; With prime library titles and nearly every coveted television show ever aired already in the marketplace, the average number of units being;snapped up;by consumers per year has plummeted from nearly fourteen to about seven.

Though the;above-linked story is well worth reading, it’s also equally well worth noting that a majority of releases are outgrossing their domestic theatrical take in the home video window.; Titles like Ray, Friday Night Lights and the cult phenom Napoleon Dynamite have gone from “hit” to “blockbuster” status based on their DVD sales, while even a goliath like The Incredibles has managed to surpass its domestic box office performance to the tune of $50 million.

That said, will this “meager” 1.1% growth give way to a gradual decline in sales?; And, if so, have the studios prepared for how this might impact their typically outsized spending?

In response to this disconcerting development, Anchor Bay Entertainment has guaranteed that the 1982 Gary Sherman classic Vice Squad, starring;the immortal Wings Hauser as;Ramrod, the E.T. of killer pimps,;will be shipping in time for the holidays.

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