***Assessable News Article for University***
Physical media sales are declining year on year forcing mass retailers to reduce store space devoted to DVDs and Blu-Rays (BD).
A recent report from market researcher, The GfK Group, has shown that physical media sales in mass merchants are dropping at 5-7% per year.
Maryanne McDermott, DVD Buyer for Big W Discount Stores said that although sales are continually dropping, they will eventually plateau.
“There will always be a place for physical media in our stores. The trends show that our sales will be halved in 5 years, and that will be the end of the decline”
With only half the current sales, retail stores can only afford to devote half the current floor space to physical media.
This will result in DVD ranges being reduced and only major new releases will be taken, older lines will be removed.
“The impact of online as an easily consumable media platform has continued to grow, and mass retailers haven’t kept up” said Raymond Huynh, National Account Manager at Universal Sony Pictures.
“Subscription services are available for consumers to watch films on their phones, TV’s, laptops and tablets.”
With Internet services using fresh technology to complement its availability, mass retailers are quickly falling behind.
An ongoing debate is being fought for DVD & BDs place in the media mix and consumers will vote with their wallets.