Tuesday January 17, 2017

Netflix Is "Killing" DVD Sales, Research Finds

This is a conclusion you could have made yourself, but researchers now have empirical data to confirm that Netflix does, in fact, affect disc sales: any titles that are removed from the streaming service get a noticeable bump in sales. Now the industry gets to blame Netflix for hurting the industry when they get tired of blaming piracy.

News Image

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.