DVD sales/rentals have become passe and so has the video store - it turned into a Place of No ! A recent study by SNL Kagan (the media consulting group) on the state of the DVD industry found that "brick and mortar, mail order, and kiosk video distribution sank a collective 43.9% in 2010 vs. 2009". I believe this trend will not only continue but accelerate.
Where did the eyeballs go? They certainly haven't migrated to the cinema. According to our friends at Kagan, the eyeballs moved to the Place of Yes - the fast growing content streaming space via Netflix and video-on-demand services from TV cable, satellite, and telco operators.
The Kagan study lends credence to what I have been shouting for sometime - that in the future, movies will be delivered to viewers through a variety of distribution points simultaneously. If I'm right then cinemas need to change their business model or they too will become a Places of No! Movie exhibition needs to raise the entire bar on customer service and satisfaction and focus on what's NOT going to change in the future.
With conviction, I guarantee that 10 years from now customers will want low and valued pricing, fast and reliable service, great selection and choice. Exhibitors need to build a low cost, efficient, and value-added model to compete in the future and remain a Place of Yes.
Best and Happy Movie Going
Jim Lavorato
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