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The Laser at the End of the Tunnel: Studios Need to Save the Dying DVD Format

Forget about high-def DVDs. Standard-definition DVDs are losing ground in the U.S., thanks to the Internet and studio complacency. If movies on disc will remain relevant, the film industry needs to take risks by embracing the Web instead of fighting it.

Digital Journal, Op-Ed — Something funny happened on the way to Blu-ray becoming a home-theatre champion. Amidst all the headlines proclaiming Blu-ray the winner in the next-gen DVD format war, a more important issue was lost in the chaos: Do movie fans buy DVDs as much as they used to?

That questions demands attention in a market that has seen better days: U.S. domestic DVD sales fell 3.2 per cent last year to $15.9 billion US, the first yearly decrease in the medium’s history, according to Adams Media Research.

Instead of worrying about how to market Blu-ray to current film buyers, shouldn’t industry leaders woo consumers back to the DVD? They are losing their audience, and one factor contributing to that decline is the Internet, where online film-viewing has lost the mystique (and graininess) of the past; whether Netizens go to sites like quicksilverscreen.com for free pirated streaming films or use a service like Apple’s iTunes. The Net is winning big in the 21st-century. For DVDs to remain relevant, studios will need to take a step forward and re-market their films to a new breed of consumer.

That’s not to say they haven’t come up with a few schemes already: 20th Century Fox recently introduced a “digital copy” disc to accompany all new DVDs, allowing people to download a digital file of the movie to their computer; Warner Bros. is releasing more movies on DVD and on video-on-demand services simultaneously, saying the move has bolstered sales for both; and CBS Home Entertainment has been designing DVD covers to appeal to style-conscious collectors — its 34-disc $200 box set of “I Love Lucy” is aesthetically unique thanks to a heart-contoured cover and Lucille Ball faces dotting the front.

However, it will take more than redesigns for the DVD business to see glory days again. Hollywood needs to recognize its obsolete business model and adapt to changing times, and we all know what means: embrace the Internet, instead of fearing it. A digital file on disc is a good start but suing university students for uploading films sends the opposite message. DVD sales may be soft, but studios should try to use diplomacy to get on the Net’s good side, rather than attack it without abandon (sounds familiar?).

Complicating the picture further is the upcoming digital transmission switchover, when the U.S. government mandates all U.S. TV broadcasters switch their over-the-air transmissions from analog to digital. The public is generally confused about what will happen to their TV sets in a year, when the switchover takes place. Will high-def Blu-ray content be the premium product to buy? Will the Web win over some couch potatoes who are frustrated by the high-def hoopla? As important as the mandate is to HD companies, studios should be worried that DVD sales might soften even more — the Web will look like an attractive place to watch and share movies once high-def players and digital tuners boxes jostle for space on store shelves. Will is just be too much for the average consumer?

The problem is further complicated by Blu-ray, the next generation of DVDs; if DVD sales slump to much and more people go online or look for movies through on-demand avenues, there won’t even be an audience around to care about high-definition on DVDs. For that reason alone, studios needs to boost DVD sales to secure their future with Blu-ray.

Going back to simpler days might sound Luddite but I’m sure there are movie fans out there who simply want to watch a flick, turn off their brain and be entertained.

DVDs will always be appealing for their ease of use, their cover designs, their added features. But the DVD shouldn’t be taken for granted; we appreciate the medium and we also want to see it advance with the era. Studios will need to hone their creativity to a ninja level so we won’t be bored by the new releases pouring on us weekly. Once they use the Web as a complementary tool, films on disc will thrive like they’re destined to do, even if current trends don’t give us more than a fuzzy picture.

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