DVD Industry Woes: The Other Shoe Drops 14%

According to the Digital Entertainment Group, first quarter movie rental revenue is way down even though digital downloads and Blu-ray sales were up compared to the same time last year.

U.S. DVD rental revenue fell 14% from a year ago. DVD sales account for about half the profits for a movie, so any decline portends financial worries. During a very tough 2009 for home entertainment, consumers preferred to rent DVDs than purchase them. DVD rental revenue rose 4% in 2009, while sales dropped 13%. Both figures include high-definition Blu-ray discs.

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