It’s hard to believe that on the surface, physical media is going the way of the dinosaurs.
One day you’re sitting down with your family, prepping to pop your favorite Disney flick into the DVD player for the thousandth time, then the next you’re scrolling through Netflix, looking for something, anything good to watch.
The video game industry is currently following a similar trajectory.
According to Newzoo and GamesIndustry.Biz — one of the largest providers of gaming market data — 2023 saw 95% of overall video game purchases be digital, with only 5% being physical. Whereas exclusively in the console market, 83% of sales are digital and 19% are physical.
With this in mind, the immediate thought would be that physical media would be out the door in only a matter of years.
While that may be the case for video games, I believe that a different case can be made for the ever-expanding industry of film and television.
Over the past 20 years, we’ve seen the home entertainment market change in many ways. The death of BlockBuster Video and the rise of streaming to the release are just a few. As we continue to grow and grow, it’s a given that some parts of the industry will be left behind, take the VHS tape for example. Now, with streaming becoming such a widely available option, the belief that DVDs will soon be six feet under is a popular claim.
However, the same was said about vinyl.
According to Statista, 2006 was the least profitable year ever for Vinyls, coming in at a whopping $34 million.
Moving forward 17 years later, the Recording Industry Association of America said that in 2023 Vinyl Records sold 43.2 million units, equating to $1.4 billion in revenue. Considering vinyl records are much clunkier and less advanced compared to CDs, you would imagine the more modern means would be more profitable right?
No, as CDs only made a profit of $537 million.
A reason for this yearly surge in revenue and interest is that people are beginning to collect vinyl as a niche hobby rather than a way of life.
Whether they’re spinning their vinyl or putting it up on their walls, customers are flocking out for many new releases.
If records can successfully rebound 17 years later, who’s to say that DVDs can’t do the same?
In the past year, Best Buy has begun phasing out its physical media sections, and it’s clear to see that Target and Walmart are doing the same, except for steel books and 4K Blu-rays.
According to an Aug. 2024 cover note from Digital Entertainment Group, “Consumers continue to show strong demand for collectible disc formats with SteelBooks up 44% and 4K UHD Blu-ray catalog sales growing by 16%.”
Over the past several years their popularity has soared, garnering them deals with larger studios and films as well as sales among customers.
The Business Research Company reported that 4K TV sales will, “grow from $229.73 billion to $285.28 billion in 2024 at a compound annual growth rate of 24.2%.”
Yes, physical media may be disappearing off shelves, but it’s not dying, just merely finding a new home.
As Bob Buchi, president of Paramount Worldwide Home Entertainment, said to TheWrap, “The physical market was really driven very much by kids and family products early on, but now it’s really being sustained by the collector who appreciates everything it has to offer.”