Disney is going to be outsourcing its DVD and Blu-ray business to another company. Could this mean the end for physical copies?
The DVD business seems to be going downhill. More and more stores have stopped selling physical copies of shows and movies, since everything and anything is available through streaming sites. Now, Disney is outsourcing a huge part of it's home entertainment sector.
This could spell the end for DVD and Blu-ray. There is fewer demand for physical copies, so there will also be fewer opportunities to get your hands on them. Who did Disney outsource their DVD and Blu-ray business to, though? The answer might surprise you.
Disney Outsources Huge Part Of Home Entertainment Division
Disney has decided to partner with Sony Pictures Entertainment for a large part of their home entertainment division. This means that upcoming manufacturing and distribution of Mouse House's DVD's and Blu-rays will be done by Sony.
This deal will give marketing, sales and distribution right to Sony of any new Disney release. Sony also gets to decide which physical copies will be sold by which retailers. It's important to note that this deal is only for distribution in Canada and the US.
In other countries, Disney has already long given over these rights to other companies. For example, in Germany, Leonine has been overseeing the marketing, sales and distribution of physical Disney copies.
According to Disney, this new model will allow for more efficiency. They explain that they will be able to continue to bring films and shows to retailers through this deal. But it is a clear statement that the DVD and Blu-ray business is slowly dying out.
The Digital Entertainment Group (DEG) is an industry association that advocates for and promotes the entertainment industry, focusing on the digital marketplace. It compiles and disseminates data on sales, trends, and consumer behaviors related to digital distribution, physical media, and emerging technologies within home and mobile entertainment sectors.
In the Digital Entertainment Group, DVD and Blu-ray sales have dropped significantly in recent times, with spending going from around $3.29 billion in 2019 to $1.97 billion in 2021. And spending has only decreased since then, which just shows that fewer people are buying physical copies these days. I mean... why would you with Disney+ and Netflix right there?