International Disney Exiting Physical Media in Australia (1 Viewer)

[Josh Steinberg]

But when you look at this, the statistics are quite sobering:

2022 US home video sales: streaming still dominates, digital sales also up | Diverse Tech Geek

Looking over 2022 US home video revenue figures, streaming continues its dominance, while the only other category to rise is digital sales.

www.diversetechgeek.com

• Subscription streaming: $30.3 billion (up 17.3% from 2021)
• Digital sales (“electronic sell-thru”): $2.5 billion (up 1.7% from 2021)
• Digital rentals (“video on demand”): $1.7 billion (down 14.1% from 2021)
• Physical media sales: $1.6 billion (down 19.8% from 2021)
• Physical video rentals: $502.4 million (down 16.7% from 2021)
• Total: $36.6 billion (up 11.4% from 2021)

By percentage of overall revenue:

• Subscription streaming: 82.8%
• Digital sales (“electronic sell-thru”): 6.8%
• Digital rentals (“video on demand”): 4.6%
• Physical media sales: 4.4%
• Physical video rentals: 1.4%

This is the point I keep making that too many here are simply unwilling to acknowledge.

Disney isn’t eliminating discs in Australia to try to push people towards streaming. Disney is eliminating discs in Australia because people have already chosen streaming and there isn’t enough of a demand for physical media for them to consider that effort worthwhile any longer.

 

[Malcolm R]

Disney isn’t eliminating discs in Australia to try to push people towards streaming.

Overall, no, but their refusal to engage any boutique labels that might be interested in licensing Disney content for a physical release sort of says that's part of the equation in the end.

 

[Josh Steinberg]

Overall, no, but their refusal to engage any boutique labels that might be interested in licensing Disney content for a physical release sort of says that's part of the equation in the end.

That’s what they had already been doing in Australia for the last few years - any Disney release down under recently was a licensed product that a local boutique label had licensed from the company. That they’re shutting that down suggests to me that even that as a business model was no longer working. If the licensee isn’t making enough to cover the costs of the license, that’s game over.

 

[Bryan^H]

This is the point I keep making that too many here are simply unwilling to acknowledge.

Disney isn’t eliminating discs in Australia to try to push people towards streaming. Disney is eliminating discs in Australia because people have already chosen streaming and there isn’t enough of a demand for physical media for them to consider that effort worthwhile any longer.

After seeing the chart from 2022 sales, it is pretty obvious that physical in the movie market is miniscule in the overall scheme of things. and physical sales even worse in the Australian market the choice is an obvious one.
Unfortunately.

 

[ManW_TheUncool]

That’s what they had already been doing in Australia for the last few years - any Disney release down under recently was a licensed product that a local boutique label had licensed from the company. That they’re shutting that down suggests to me that even that as a business model was no longer working. If the licensee isn’t making enough to cover the costs of the license, that’s game over.

That seems undeniable for Australia and whatever smaller markets, but Disney has basically been (largely) avoiding licensing titles out for a long time even over here in the USA while pushing for streaming (and buying up other studio libraries).

So the suspicion is not unwarranted.

I agree w/ Bryan it is both that the market has been winding down *and* Disney has apparently proactively contributed towards that at least in part because of their bent toward streaming...

These various factors/issues are not mutually exclusive.

_Man_

 

[RobertMG]

Disney is a mess they are in more trouble then people realize Iger has said streaming has not been as successful as he hoped the parks are losing attendance they are out pricing many he is talking about selling abc etc okay physical media is not as WOW as 20 years ago - the future of home video will be all studios simply leasing their titles out for home vid Kino, Shout, Classic Flix, VCI, and Flicker Ally Kit Parker and on and on will thrive in a smaller market while Paramount and WB release classics WBs seems committed to 6 now a month restorations and simply put the successful firms will use all their assets to make money Disney is turning many off with their film releases the box office has been down so maybe they will stop making junk?

No More Mr. Nice Guy: Bob Iger May Just Want to Sell Disney and Be Done​

PROAVAILABLE TO WRAPPRO MEMBERS

The CEO’s uncharacteristic antagonism toward strikers may point to an M&A state of mind

 

[jayembee]

4K will be available as part of retailer exclusives at Target, Best Buy (steelbook) and Disney Movie Club. Disney also did this with Strange World, which was available on 4K in the steelbook and at DMC.

Yup. Best Buy, Wal-Mart, Disney Movie Club:

 

[Jake Lipson]

Wal-Mart

That's it. You're right. I mixed up the Wal-Mart one thinking it was Target. Thank for the correction. If I liked the movie enough to buy it, I might have remembered that.

4K as exclusive does appear to be the beginning of a trend now. When they did this for Strange World, I thought it was because that film did poorly and was not expected to sell well, but The Little Mermaid is a much higher-profile release. I'll be curious to see what happens when Elemental and Dial of Destiny are announced, which should be Disney's next two new releases to arrive on disc. The issue is that the exclusives from physical retailers like Wal-Mart and Best Buy are limited to around street date and then go out of print when they sell out. That would eventually make the Disney Movie Club the only place where the 4K is available, assuming they keep it In print for the club.

 

[Dick]

MSN

I don't like this news, but I'm gonna keep on buying and renting Blu-rays as long as I can!

 

[BobO'Link]

Being discussed here:

International - Disney Exiting Physical Media in Australia

Disney is not going to continue with physical media in Australia after the release of Guardians of the Galaxy Vol 3. It was confirmed by the Digital Bits. https://thedigitalbits.com/columns/my-two-cents/072523-1400 Why couldn’t Disney license their titles for physical media in Australia and...

www.hometheaterforum.com

Although I *did* laugh when I read this line in that article which was part of the author saying why "disc is better":

...Physical media is uncompressed...

Ummm... Physical media *is* compressed to fit on the discs. Some more than others. BUT it's typically better and uses less compression than streaming.

 

[Sam Favate]

“…the success of Disney+….”??

Disney+ has yet to turn a profit for the company.

 

[Ross Gowland]

I went into the Brighton, England HMV yesterday. The place used to be roughly 55% CDs and records and 35% DVD’s, blu-rays, and UHDs. c.90% overall.

In the three or so months since I was last there, the physical media has contracted to around 35% in all and the rest is merchandising, with a focus on manga and anime.

I just hope that we get to keep discs even if it’s a collectors’ thing like laserdisc in the 90s.

 

[billO']

Based on the crappy movies Disney is currently making, they might be doing Australians a favor.

 

[dpippel]

Based on the crappy movies Disney is currently making, they might be doing Australians a favor.

What, no love for the Cinderella remake???

 

[Traveling Matt]

I just hope that we get to keep discs even if it’s a collectors’ thing like laserdisc in the 90s.

The discs won't be "dead" so long as they keep making the players.

 

[Edwin-S]

Based on the crappy movies Disney is currently making, they might be doing Australians a favor.

SNOW WHITE hasn't been released yet.

 

[cineescape]

Blu-rays may be a niche market by now, but as I understand it, they're still making a profit (esp. on new releases), why cancel a profit stream? But when you think of Disney, you're not really thinking of a profitable company making sensible business decisions

However profitable or sensibly thinking, Disney had the bucks to purchase Fox, though only to throw all the Fox classics library into a vault. And now I hear they're shuttering physical media plants throughout Australia and most of Asia. IF Disney is or was now hurting badly (?), perhaps they will be the first of the big studios to soon shut down all plants worldwide, assuming they first secure strong long term streaming contracts to market their content. So glad I've had virtually zero interest in Disney stuff, save for lots of Fox movie and TV titles, of course. Heaven knows what those bean counters will end up doing with them.

 

[Carl David]

The only thing that concerns me is if the studios decide to stop licensing out titles completely thus herding everyone into streaming.

Don't know how much they receive in revenue from this side of the business but my guess is not a great deal even though there is no risk on their end from licensing out titles and letting the boutique labels take all the risk.

Can imagine them doing this as a ruthless measure if the revenue is insignificant.

But this objective of the movie industry to get consumers into streaming is far from over.

When they start pricing the service to reflect the true cost of delivering it consumers will cancel subscriptions in their droves.

As it stands streaming is winning the battle but the tables can be turned very quickly in business.

It will always come down to price.

What price can major streamers offer their service profitably and sustainably?

If it's under $40 per month then streaming will probably win if the choice of movies available stays healthy.

If over $40 the scales change in my opinion.

It's an interesting dynamic and I am looking forward to seeing how it all plays out.

 

[ManW_TheUncool]

What price can major streamers offer their service profitably and sustainably?

If it's under $40 per month then streaming will probably win if the choice of movies available stays healthy.

If over $40 the scales change in my opinion.

It's an interesting dynamic and I am looking forward to seeing how it all plays out.

$40/month???

Forget that(!) unless you mean some kinda one-stop service to cover all movies across all studio libraries perhaps... which would be unlikely to ever happen unless one big company gobbles up 80-90% of them or something -- the various studios do not (like to) collaborate nearly enough for that otherwise.

Even then, I imagine many of us enthusiasts on the net won't likely go for that and just stick w/ our own existing collections instead, except for the occasional new release.

I mean... I already own waaay more than I really have time to rewatch (and also have nearly insurmountable backlog), so if I can't buy anymore discs nor digitals to add to my collection starting tomorrow, I'll be fine outside of new releases even though I still would like to add some more catalog titles in HD or better quality (most of which might not be included in such a $40 service bundle anyway)...

_Man_

 

[Carl David]

$40/month???

Forget that(!) unless you mean some kinda one-stop service to cover all movies across all studio libraries perhaps... which would be unlikely to ever happen unless one big company gobbles up 80-90% of them or something -- the various studios do not (like to) collaborate nearly enough for that otherwise.

Even then, I imagine many of us enthusiasts on the net won't likely go for that and just stick w/ our own existing collections instead, except for the occasional new release.

I mean... I already own waaay more than I really have time to rewatch (and also have nearly insurmountable backlog), so if I can't buy anymore discs nor digitals to add to my collection starting tomorrow, I'll be fine outside of new releases even though I still would like to add some more catalog titles in HD or better quality (most of which might not be included in such a $40 service bundle anyway)...

_Man_

I hear you.

It was just a guess.

The threshold might be $30.

Whatever it is I think it is above what people will be willing to pay for the service.

Not convinced the streaming companies can remain profitable even if subscriptions were $25 per month.

We shall see.