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Analysts predict declining DVD sales in 2007

Darren Murph

Although HDTVs were atop nearly everyone's holiday wish list, it seems that folks aren't splurging as much on their now-stagnant DVD collection as in years past, which could be an "early warning sign" for 2007. According to a recent report by Pali Research analysts Richard Greenfield and Mark Smaldon, next year could be the first year in consumer spending history that DVD sales actually decline. The report is based on Best Buy / Circuit City's relatively sluggish 2006 disc sales, and when you consider the sagging record sales on the music front, the scenario isn't too hard to fathom. Although there's no pinpointed reason why folks aren't divulging quite as much disposable income on DVDs, some analysts suggest that the onset of internet movie downloads and films on demand are cutting into actual disc sales -- something Comcast (and other providers) could have a hand in. Notably, folks are bearish when speculating about the HD DVD and Blu-ray impact, as they say that high definition films won't sell enough to put a dent in the expected downturn, which could bleed all the way into 2008.

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