It isn't a secret that DVD sales keep Hollywood profitable these days, and it isn't big news that DVD sales are reaching a plateau and potentially will begin a decline in the next few years. So, Hollywood is in trouble! According to a NY Times article, the home entertainment divisions of all the major studios appear to be nervously seeking out a new way to get money out of consumers. With the industry divided over hi-def formats, download sites not yet showing returns, Netflix gaining ground, and video-on-demand cable services providing more selection, there isn't much time before home video sales drastically fall. Even Steve Beeks at Lionsgate admits companies have depended for too long on the "shameless" act of re-releasing titles in new packaging "as long as people would buy them."
I've got a good idea for a new cash cow for Hollywood: Movie theatres. Instead of ignoring the downfall of moviegoing, why not invest in the experience again? Stop taking advantage of the theatres that work so hard to aid your business and instead help them get back in the game. It might be more difficult than sitting around and waiting for consumers to accept new technologies, but it might just be a better solution in the long term. I mean, what does Hollywood have against the cinemas anyway?