Where Are the DVDs?

So you think DVDs are doing just fine, and that Blu-ray is getting poised to be the high definition replacement for them in due time. Well, here are some news items that might cause you to think again.

Best Buy and Sonic Solutions announced last week that they are forming a partnership to promote the Roxio CinemaNow online video streaming service. Best Buy will bundle the offering with brandband services and Internet-connected devices.

Best Buy also announced in October that their house brand, Insignia, will offer a Blu-ray player model that will stream Netflix online content. Priced at $99, it competes with other media player choices that don’t have a disc player, making it an appealing transition product.

Reports indicate that Walmart and Best Buy are significantly decreasing the amount of floor space devoted to DVD sales.

The signs are clear that major companies are positioning themselves for online delivery of movies — both for rental and for sale — instead of managing a physical inventory of plastic discs. The movie industry has discovered the convenience and savings of eliminating film in favor of digital delivery of movies, and this is one more feature that seems to be migrating rapidly to the consumer market.