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No Virginia, Physical Media is Not Dying

For some reason media outlets like to run articles with a theme that streaming services are killing the physical media – DVDs, Blu-Rays and 4K UHD.

Their “evidence” comes from certain non-competitive hardware manufacturers getting out of the Blu-ray player market, Sony scaling back their manufacture of blank, recordable Blu-ray discs as a storage medium and certain retail outlets (Target and Best Buy) scaling back their inventory of physical media.

David Mackenzie, CEO of of Fidelity in Motion, felt compelled to write a piece addressing the Sony announcement of discontinuing several variations of recordable media and the mis-reporting surrounding the issue.

“This story has been inaccurately — and, I would argue, irresponsibly — reported by some media outlets apparently unaware of the key distinction between home-recordable media (BD-R and BD-RE discs) and the professionally replicated Blu-ray movies you buy in a store (BD-ROM). The latter is unaffected by Sony’s Storage Media division deciding to phase out home-recordable discs.While the decline in recordable optical discs for computer data storage isn’t a positive sign for optical disc as a whole, it has no impact on what 99% of people associate with “Blu-ray”, which is packaged movies on disc with near-master image and sound quality.

To clarify, professionally mass-produced movies (whether on BD, DVD, or CD for that matter) are stamped in replication facilities rather than burned onto blank media. This efficient, high-speed manufacturing process is carried out in factories using machinery worth millions of dollars and remains entirely unaffected by Sony’s consumer division phasing out home-recordable discs. To use an analogy, it’s akin to the difference between a home-printed letter and a professionally printed and bound book. If an office supply company decided to stop selling blank paper to consumers, it wouldn’t signal the end of traditional book publishing.

Benefits of physical media

  • OrganizationPhysical media is good for collectors who like to organize their media. 
  • Backup – Physical media can be a backup to streaming services, especially if a company removes a title or changes it. 
  • Access to rare titles – Physical media can provide access to titles that are difficult to find on streaming services. 
  • Collector’s editions – Companies make special releases and collector’s editions of physical media. 

Factors contributing to the continued demand for physical media

  • E-commerce: E-commerce has helped keep the physical media business alive. 
  • Dedicated consumers: Many consumers are committed to owning physical media. 
  • Aftermarket: The aftermarket for physical media is strong, with many collectors buying discs from regional chains and mom-and-pop shops. 

When new technologies come along it makes sense that the older versions decline. DVD sales have been dropping but 4k disc sales have been growing.

Physical media sales, including 4K Blu-ray, Blu-ray and DVD, are on the rise according to major UK retailer HMV (reported via BBC). 

According to Phil Halliday, HMV’s managing director, “physical visual” sales have increased overall, citing that “4K and Blu-ray have been doing particularly well”. Reported figures suggest that HMV’s “visual category” has seen a rise of 5% in the first half of 2024 (as told to the BBC by a spokesperson).

Physical media sale may not recover to the same level of DVDs before streaming services came to be but the majority of customers seem happy enough with the raising costs of streaming, having to watch ads, low bit rates, low quality audio and movies/shows being yanked off the services.

But media customers purchasing good quality OLED TVs and investing in good sound systems want to be able to screen their favorite movies in the best possible way with high quality video and theater sound.

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