Although Blu-ray movie sales have tripled since the same time period in 2008, according to The Digital Entertainment Group, movie studios still aren't happy with the amount of Blu-ray Discs sold so far.
The struggling economy is the main scape goat for Hollywood, although a film producer and former Fox Filmed Entertainment head believes there is something else that is negatively hurting Blu-ray sales.
"I think it's one part recession, but there are bigger factors," Bill Mechanic recently said during an interview with The Wrap.
Movie sales in general have struggled, with Viacom reporting its filmed entertainment profit has dropped 81 percent during its last quarter, dropping to $22 million. Fox Filmed Entertainment dropped 72 percent down to $112 million, with DVD sales falling 15 percent. Time Warner's DVD sales dropped 24 percent, even though The Dark Knight proved to be the most popular movie last year.
Lionsgate, Sony, GE and Disney also suffered a drop in sales and analysts are not convinced the movie studios will be able to help generate enough buzz for movie sales to increase throughout 2009.
Although most companies are saying it's because of the economy, there is a growing concern regarding DVD undercutting the cost of Blu-ray movies.
That’s a misreading of consumer behavior as well as a misreading of the economic environment,” Mechanic continued. “It’s devalued the libraries. If you can buy ‘Titanic’ for $4.99” versus $19.99 for a new, but lesser, movie on Blu-ray, consumers will say, “‘Well, wait a minute…’
