Movie Rentals Biting Into DVD Sales
The question is now can the studios recover from their own short-sightedness and failure to put together a profitable online business model? Will they cut prices on DVDs (and Blu-Ray) to try to prop up sales? Or will they do something most of Wal-Mart's suppliers are afraid to do and play hardball? My uneducated guess would be a little of both... push the content providers for a little more margin, because if the studios cut off the providers people will likely go and rent or buy movies the old fashion way, while cutting the MSRP on movies a bit (and roll out the back stock very heavily discounted) to try to reduce sales erosion.