Businessweek's asking what's happening to the DVD market. It seems that the pace of sales growth in the DVD market is slowing, and in some cases is even dopping off. Now that Dreamworks is
reporting a drop in earnings, partly due to lower DVD sales it seems that the DVD market really is running into trouble.
Normally, this kind of business news isn't interesting to gadget lovers since it concerns content. What's more, now that we're all salivating over the possibilities of UMD and HD-DVD technologies, who cares about what happens to the old-timey DVD? The reason this development is interesting is that it seems directly related to the fragmentation in the device market. There's only 24 hours in a day and that means that all the new technologies have to compete for our attention.
On another note, I'm glad to see that BusinessWeek didn't spin the story that the drop in DVD sales is related to 'online piracy'. Rather, their analysis is that besides the fact that DVD viewing is having to compete with ever more different types of amusement the DVD distributors are also to blame. The market is apparently being smothered with library releases of both TV content as well as movie content with movies moving from cinema to DVD in record times. Lets keep this in mind as we wait for the movie industry to start spinning this story as a 'piracy is killing us poor producers' story.