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ExtraTorrent.cc > Articles > Movies Rentals Surpassed Sales

Movies Rentals Surpassed Sales

Movies Rentals Surpassed Sales

Added: Friday, October 29th, 2010
Category: Bit Torrent Freedom > The Industries Of Records, Gaming, Software, Movies
Tags:ET, p2p, Torrent, Piracy, Peer To Peer, Network, Hackers, Internet, BitTorrent, Google, utorrent, bitcomet, extratorrent, 2010, www.extrattorrent.com
While consumer-friendly electronic devices, such as Apple TV and Web-enabled TVs, are being designed intentionally to make the access to digital movies easier, most of the consumers still prefer to simply rent them. Today movie studios are working hard in order to change those habits.

Since consumers switched their shopping habits to the web a long time ago, most of them now don't even hesitate to purchase such expensive things as cars and homes in the Internet, but at the same time they refuse to buy movies online.

Digital revolution brought interesting results: for over a decade, online film downloads and streaming have been too complex for most of the consumers. However, in the last years, a rapid expansion of new devices like Apple TV has begun pushing online viewing of videos into the mainstream. Still, although more consumers go online to watch films, they still don’t want to buy them.

The representatives for the entertainment industry admit that the community is currently at the point where digital becomes relevant, but at the moment rental dominates over sales. Such shift in consumer habit is of course very destabilizing for the movie studios, hoping that people would transfer their DVD-buying habit online.

The latest studies revealed that DVD profits peaked at $20 billion back in 2006, which was more than twice that of box office ticket sales. At the time, DVD sales were much more profitable than rentals, as DVDs (cost around $1 each) were sold for $17.

Meanwhile, in the last years DVD sales have dropped, with recession-weary buyers cutting their expenditures and switching to the other cheaper rentals from Redbox and Netflix. At the same time, lower-margin rentals have brought lower revenue for the Hollywood studios.

Although sales of expensive Blu-ray discs keep growing, they are not enough to make up the difference. In fact, it is clear that home entertainment will once become an online business, like music. Therefore, it’s vital for the Hollywood studios to persuade their consumers to keep purchasing movies online if they want to maintain profits.

The studies predict that consumers will rent 38 million films online in 2010 for $3-5 each, making it almost sevenfold increase from 2007, while buying only around 20 million films for $10-15, which is a less than threefold increase since the same time.

October 29th, 2010

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Date:  Friday, October 29th, 2010

Comments (3) (please add your comment »)

posted by Blocked (2010-10-30 09:49:12)
menahunie avatarMy take on it is why the hell pay 20 dollars and more for a movie when you can rent it way cheaper. Heck rent a movie from 1.00-4.00; riiipppp burn baby burn....

posted by (2010-10-31 23:35:10)
pjth avatarWhy buy when 90% out there is not worth buying. Heck most of what is out there is not worth the price of a DVR. The biggest problem of Hollywood is the lack of talent. some of the youngsters that a so called actors got the job because of daddy and not because of talent. the real talent is getting old and there is none coming up to follow. maybe Hollywood should go to the theaters and look for talent rather than hiring protegees. May bee movie sales would increase again.

posted by (2010-11-02 21:07:38)
CaptainApollo avatarHumans are creatures of habit. It's going to be a long time til they can surpass that habit... and when they do (if they do) then kudos to them.

Funnily enough I went out a few days ago and rented a few dvd's, it was expensive but I had to do it because my machine was running crappy.

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