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Analyst sees beginning of end for DVD

Steven Kim

An analyst for Berstein Research sees a 4% downward turn in DVD sales on the year as a sign that the format is in the autumn of its years. Great news for HDM, right? Definitely maybe, according to the analyst. If a single winner ever emerges from the format war, the entertainment landscape may not be great for movies on discs. Increasing competition from VOD, downloads, internet streaming content and videogames may leave little room in consumers' entertainment budget (both time and money). Still, the smooth, immediate HD experience you get from a self-contained piece of HDM is serious competition for any entertainment medium. No doubt, the entertainment space will become increasingly complex and competitive, but there will still be room for multiple ways for consumers to get their fix. Factor in big media's comfort with the physical versus electronic distribution model, and we expect to see HDM around for a while.

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