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Why Streaming Movies Beats Dvd But Makes Less Revenue

Written By: admin on Sunday, April 8, 2012

Now instead of purchasing films in their physical form, more people are using the internet to get the entertainment they need.

Interestingly, the results expected are nowhere to be found. In the way of sales, streaming movies beats DVD but makes less revenue.

More film lovers than ever before have been able to make use of the net for their viewing pleasure. Currently, the figure of digital users stands at an amazing 3.4 billion. This is comparison to DVD and blue-ray consumers who are only at 2.4 billion. Despite the figures, it has also been uncovered that profits in the digital world are still trailing behind those made from DVDs and other physical formats.

This is primarily due to the significant difference in prices. Basically DVDs cost the consumer more to rent or purchase than any film in digital format does. For this reason, the superior online sales are still not enough to outweigh physical format sales.

When you are dealing with films online, you will usually be a part of a monthly package. This means that you are able to pay a set amount each month for as many films as you wish to rent out. On the other hand, DVDs and blu-ray are usually sold separately, making rental a more expensive process, thus resulting in an increase in revenue.

Though this is the case, it is thought that the internet will soon surpass rental services in profit too. This process is not illegal and does not have to entice a crowd who are in favor of free and illegal downloads. Online services like this exist so that consumers have the chance to acquire films at a reasonable rate and so has become by far the most appealing option.

It is true that streaming movies beats DVD but makes less revenue, but this is due to the fact that it costs a lot more to rent a film in its physical form. As online sales increase, profits will follow. Internet services like this provide an all-round easier viewing experience.

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