The amazing and precipitous plunge of the popularity of DVDs continued in 2010.
After reaching a high water mark of $21 billion in 2004, DVDs accounted for $14 billion in revenues in 2010, a whopping 33 1/3 % decline in just 6 years.
“Is there any new technology left that can save us?”
“What a revolting development this turned out to be.”
Put simply and bluntly, the New Hollywood business model is broken and the question of its survival reverberates daily down every hallway in Hollywood.
Netflix Forecast: DVDS Will Be Gone By 2030
The symbolism of Blockbuster Video itself as it teeters on the verge of bankruptcy seems to be completely lost on The New Hollywood.
Hollywood Video is already defunct.
Video on demand at home, Red Box video-vending machines, Netflix, and other Internet-based video outlets have done to video stores what DVDs did to videotape.
Netflix’s own outlook for the future of DVD industry is startling. In June 2010, Netflix issued a forecast stating that the physical DVD business (sales, rentals via mail, store and kiosk) will disappear completely by 2030.
Can The New Hollywood Survive?
No, it can’t, not within its present economic model.
While studios boast of box office receipts, that statistic is bloated because of the steep rise in ticket prices and merely masks the red ink on the bottom line.
Production and marketing costs have ballooned while DVD revenues have plummeted so precipitously that very few films earn back their investments.
While I sincerely hope that they will successfully find their way back through the maze of their current issues, the future of The New Hollywood is not the focus of this book.
My sights are set on bringing back The Old Hollywood, not as a replacement for The New Hollywood, but as its own spirit and entity.
And, with your help, that’s exactly what we’re going to do.