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Movies Television Entertainment

Netflix is 'Killing' DVD Sales, Research Finds (torrentfreak.com) 316

Netflix has become the go-to destination for many movie and TV fans. The service is bringing in billions for copyright holders, but it also has a downside. New research shows that the availability of content on Netflix can severely hurt physical disc sales, which traditionally have been the industry's largest revenue source. From a report: A new study published by researchers from Hong Kong universities provides some empirical evidence on this issue. Through a natural experiment, they looked at the interplay between Netflix availability and DVD sales in the United States. The experiment took place when the Epix entertainment network, which distributes movies and TV-shows from major studios including Paramount and Lionsgate, left Netflix for Hulu in 2015. Since Hulu has a much smaller market share, these videos no longer reached a large part of the audience. At least not by default. The researchers used difference to examine the effect on DVD sales, while controlling for various other variables. The results, published in a paper this week, show that DVD sales increased significantly after the content was taken off Netflix, almost by a quarter. "Our difference-in-difference analyses show that the decline in the streaming availability of Epix's content leads to a 24.7% increase in their DVD sales in the three months after the event," the paper reads.
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Netflix is 'Killing' DVD Sales, Research Finds

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  • Should I care? (Score:4, Interesting)

    by kaka.mala.vachva ( 1164605 ) on Tuesday January 17, 2017 @04:05PM (#53684187)
    I don't see this as a downside at all, or even an upside for that matter. Should I care? I don't like to own dvds, I rarely watch the same movie multiple times. If I can rent and watch it, so much the better - less cost, less waste. Clearly, I'm not alone in this, given the figures. If dvd sales are replaced with streaming rentals, who is affected adversely? Apart from the handful of companies that produce the dvds and their packaging?
    • Re:Should I care? (Score:5, Insightful)

      by Jason Levine ( 196982 ) on Tuesday January 17, 2017 @04:10PM (#53684229) Homepage

      You might not care, but the studios would. If they think they can increase DVD sales by not letting Netflix stream the movie, they'll do so. Netflix's library can already be a bit thin at times and this could worsen it. (Win win in the mind of the studios except that piracy would increase without Netflix.)

      • by harrkev ( 623093 )

        So, studios gain money from more DVD sales, but loose money that they could have gotten from Netflix. As long as the two amounts are approximately equal, then why would the studio even care?

      • by Matheus ( 586080 )

        The studios are complaining because they aren't maintaining their DVD revenue in *addition to their streaming / licensing revenue. To be completely blunt I don't fucking care. They will always whine when they don't think they are making the maximum possible money. The truth is we can't tell the real economic impact with the data in the article. The only math that matters is this: If $DVD + $NETFLIX >= $DVD-ONLY then the model is working. If $DVD + $NETFLIX $DVD-ONLY then the studios have an argument f

      • You might not care, but the studios would. If they think they can increase DVD sales by not letting Netflix stream the movie, they'll do so.

        Not quite correct. If they think they can make more from increased DVD sales than Netflix would pay them for the rights to stream the movie, then they'll shut down Netflix. And they have to ask themselves if consumers will decide to simply watch something that is on Neflix rather than buying the DVD.

    • Re: (Score:2, Interesting)

      Comment removed based on user account deletion
    • I get the hard copy, rip it to digital and then have it all hooked up to a media player so when the intertubes or the services goes down or the streaming service decided it doesn't want to pay for the rights anymore (Ehm Netflix and Babylon 5) I keep on watching and YES I watching things over and over and over.

  • DVDs are a dying business. The future is streaming. Who doesn't know that?

    • by Lawrence_Bird ( 67278 ) on Tuesday January 17, 2017 @04:23PM (#53684315) Homepage

      The owning economy as opposed to the sharing/renting economy. And as past analysis have shown, the Netflix movie catalog is shit.

      Even so, at one time you could at least rent a DVD from netflix of an "old" movie. No more. And nowhere else either, streaming or physical. In effect, a huge percentage of the movie catalogue is no longer available.

    • by dagrichards ( 1281436 ) on Tuesday January 17, 2017 @04:35PM (#53684411)
      I buy DVD's and BlueRays. I like to own the "Right to Use" the content. I like not to have to rely on a given provider to have a contract to to stream content in order to be able to watch to something. I will watch some shows and movies multiple times. So for a certain core set up media I want to own the media. All that crufty back catalogue of movies and shows that is no longer available on streaming services, mine to see at any time of my choosing. I even ( GASP ) buy actual books from time to time, it seems as though there is SOME content not yet kindlified, that may in fact never be on those platforms. The streaming / sharing / caring economy will eventually strip you of any remaining un-curated choice in what you read, watch, or listen to. Seems as though there is some music not published the day before yesterday thats worth listening to. So yes I own many hundreds of CD's as well.
      • Same here! I still buy physical media for the stuff I know I watch numerous times. Stuff disappears from the streaming services, but it's always on my shelves!
    • Seriously most of my 800 dvd's look perfectly fine on my 5" tv.

    • by k6mfw ( 1182893 )
      Come to think of it DVDs are 20 (or more?) years old. In fact if you give someone a DVD, they look at you like you gave them a VHS. When they don't look at you weird, they never watch it because 1) they can't figure out how to play it on their computer, 2) they put it in a DVD player but cannot figure out how to switch the TV set to view the player (it's been years since they've done it), 3) they only watch streaming videos, 4) they ***only*** view videos on their phone, or 5) ain't got the time to watch th
  • by Anonymous Coward

    Why the hell do people want to own expensive cows and manage barn inventories when milk is cheap and fresh for $10 a month? Netflix is to DVD sales as internal combustion is to horse buggies. Research is limited to finding what research looks for.

    • by geekmux ( 1040042 ) on Tuesday January 17, 2017 @05:11PM (#53684723)

      Why the hell do people want to own expensive cows and manage barn inventories when milk is cheap and fresh for $10 a month?

      Why the hell do people want to own [any product] when renting [everything] is cheap and fresh?

      There is value and benefit to ownership. Just ask those who own the services you rent.

      Unfortunately, there's no fucking way in hell you'll be able to convince the Netflix generation of that, and thus the concept of ownership will be utterly destroyed.

      Ignorance has always been the most profitable flavor of capitalism.

  • Bye-bye, DVD (Score:5, Insightful)

    by OneHundredAndTen ( 1523865 ) on Tuesday January 17, 2017 @04:11PM (#53684237)
    I can't wait for this medium (and its high resolution counterpart) to die. Not only it is a fragile PoS - unlike what we were told initially, that you could scratch it with a screwdriver and it would keep working regardless - but, in addition, they tend to be shipped with unskippable junk that you have to watch every single time, before watching the material you are interested in.
    • unlike what we were told initially, that you could scratch it with a screwdriver and it would keep working regardless

      But how is streaming going to meet our screwdriver movie-scratching needs?

    • Comment removed (Score:5, Informative)

      by account_deleted ( 4530225 ) on Tuesday January 17, 2017 @04:25PM (#53684337)
      Comment removed based on user account deletion
      • by Trogre ( 513942 )

        Further advantages of watching content locally, either ripped or on physical media:

        1. You're not relying on your Internet connection being available and able to keep up for the duration of the movie.
        2. You're not at the mercy of the content provider deciding to close up shop, update their T&C or just block you for an arbitrary reson.
        3. You're not a data point. The only one who knows what you're watching and how often is you and anyone you care to share it with.

    • they tend to be shipped with unskippable junk that you have to watch every single time, before watching the material you are interested in.

      On the PS3, press Square to get to the main menu and play the movie. On VLC, right click, select Main Menu, play movie. In both cases, the crap is skipped.

      The streaming sites' viewing catalog is paltry compared to what's on DVD. I like streaming stuff, too, but DVD's are so superior to streaming that it boggles my mind how so many supposedly tech-savvy people on this site completely miss the many pro's:

      1) Watching a DVD doesn't count against my bandwidth, while streaming does:

      2) The perceived quality dif

      • by Rakarra ( 112805 )

        On the PS3, press Square to get to the main menu and play the movie

        "This operation is not allowed at this time."

        Or something like that, since I don't have my PS3 available at the moment.
        I can't skip the ads, but I can definitely fast-forward past them. The chapter skip button usually works too.

  • No shit? (Score:3, Funny)

    by JustAnotherOldGuy ( 4145623 ) on Tuesday January 17, 2017 @04:17PM (#53684281) Journal

    Next thing you know they'll be saying that automobiles are killing off the buggy-whip market.

  • by darthsilun ( 3993753 ) on Tuesday January 17, 2017 @04:21PM (#53684305)

    Market clearing price to watch a movie – once, or 100 times by streaming – is lower than the cost to own it on Blu-Ray or DVD.

    Studios may try to raise that price – temporarily – by not releasing the movie to Netflix streaming. But eventually they will, after disc sales fall off.

    I'm in no hurry.

  • Couldn't it be the case that Blu-Ray and not Netflix is killing DVD sales? DVDs only have 480 line resolution vs. Blu-Ray's 1080. Why would people be buying DVDs anyway? You might as well hypothesize that Netflix is killing VHS sales of movies.
    • We rarely buy DVDs or Blu-Rays anymore simply because streaming satisfies most of our viewing needs. When we want to watch something that's not on streaming, we'll request it from our local library and get it on DVD (because that's the format they have the most of). In rare instances when we actually buy a title, we might get it on DVD to save money if we don't care about it THAT much, but most times we'll buy the Blu-Ray version that comes with a DVD copy as well.

    • For a lot of movies, resolution just doesn't matter. Rom-Com, most dramas, who cares? If the story sucks no amount of HD will save it anyway. In the years since Blu-Ray came out, I bought far more DVD's until they started packing DVD+BluRay together for just a little more than DVD, and a little less than Blu-Ray.
    • Why would people be buying DVDs anyway?

      Because despite being only marginally cheaper to produce, they are sold at a far lower price than the Blu-Ray. BD being kept at a premium is what's driving a lot of people to streaming in the first place. As for me, I just want a physical backup and I'll wait for a fire sale price a few years after release.

  • Comment removed based on user account deletion
  • I'd mostly stopped buying DVDs before Netflix. For me the real culprit was too many alternatives. I'd watch PrimeTime TV, I'd watch recorded shows, primetime or otherwise, on my DVR, I'd watch YouTube, I'd not watch anything because I was futzing around online. By the time I got around to the DVD I'd bought, it was practically rotting with age.

  • by Mechanik ( 104328 ) on Tuesday January 17, 2017 @05:26PM (#53684839) Homepage
    I haven't bought a BluRay in about a year. It's not because the movies are on NetFlix, it's because most of the crap that's come out in the last few years isn't worth watching more than once, and hence isn't worth owning. The last BluRay I bought was The Princess Bride (which I already owned on DVD), because I watch it over and over again.

    Sadly, the days when movies were compelling enough to keep watching over and over again seem to be gone. DVD and BluRay sales are dying as a result.
  • Duh? (Score:2, Insightful)

    Let's see, I can buy a physical copy of a movie, store it in my home, fetch it when I want to watch it and stick it in some player and play it. I still have to put it away afterwards, and have a place in my home to keep my movies. Even if I copied the physical disc to a home entertainment server so I don't have to fetch it every time, I still have to store it somewhere.

    OR

    I go to a website with my computer (or smart TV), click a few times and a movie plays. I don't have to store it, I don't have to rip it

  • Movies I want to watch more than once? I buy it.
    Problem is there is only 2 movies in the past 2 years I wanted to buy. Most of the others I only wanted to watch once or did not even bother watching.

    MAybe if Hollywood would make things that were not crap they would sell more? NAH, let's do a movie about a 1980's TV show instead.

  • Show me the bargain bin impulse buy streaming license that replaces the $1.00 old western DVDs.
    Where is the obscure horror movie lifetime streaming license from the same bargain bin?
    Where is the private buying, selling, and trading of digital content licenses?
    Where is the universal streaming license that works based on the content licensed, and not the content providers ecosystem?
    Where are the movies and content that are worth more than a single watch to begin with?

    This reads like more of the same "poor us,

    • What I find amusing is how the MPAA screams bloody murder with every new game-changing technology, and yet, they still seem to make $$$ hand-over-fist in every instance of their crying foul of some technology. They whined about VCR's and it turned into a huge boom for them with people buying/renting movies. They whined about piracy sapping their sales, when the reverse was happening, piracy drove sales upwards! Now they screaming about streaming while in backrooms they make huge profit making deals with

  • As usual, Hollywood is never at fault and it is someone else's fault...

    I'm not a subscriber to Netflix and had been buying DVDs (no BR) the last twelve years.

    My buying habit slowed WAY down not because of competing services, but because Hollywood intentionally limited the selection of movies to release on DVDs. I'm not a fan of recent releases and prefer buying older movies. But there are a LOT of good movies that are not getting released on DVD, and the older releases are harder to find. Screw the
    • DVDs are just plain inconvenient. With the Amazon TV gizmo, I just speak into the microphone and my show is on for the kids, unlike the DVD which takes what seems like 10 minutes to get going due to all the NON-skippable crap. Either make a more convenient DVD or buh-bye!

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