With the exponential rise of streaming platforms and digital releases, production houses are moving away from selling physical copies of their movies in the form of DVDs, and Blu-ray copies among other media. While many die-hard fans and popular filmmakers including James Cameron have stood against this move, the demand for physical copies has experienced a major decline that further proves how physical media is fading away into oblivion.

Disney Signs Over Physical Media Business to Sony

Disney's Movie: Wish
Disney’s Movie: Wish

In a major move, cartoon and animation juggernaut Disney has signed over its physical entertainment media business to Sony. First reported by The Digital Bits, the latter company will now be responsible for manufacturing, marketing, and distributing Disney’s movies on DVDs, Blu-rays, etc. Disney can capitalize on Sony’s vast network of distributors across the USA and Canada to boost its sales and streamline the distribution pipeline.

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The production house will continue to manage its digital releases and streaming platform. Given how much time it takes to oversee the manufacturing and distribution of physical copies of films, it might free up more time for Disney to focus on its signature projects and deliver great content. However, at the same time, this transition might lead to mass layoffs at Disney since the entire physical entertainment media will be proved redundant.

Genie in Disney Animated Aladdin Movie
Genie and Aladdin

Disney will reportedly conduct an internal assessment to determine the functioning of its various businesses. The licensing deal will help Disney fulfill consumer demand for physical copies while remaining stress-free about proper distribution. Even though the demand for home entertainment media remains in decline, the studio faced backlash when it wanted to scrap the entire physical media model earlier.

Why is this Deal a Game-Changer?


This revolutionary deal between two industry giants will be a game-changer since it will give both studios a chance to do what they do best. It comes at a time when disc sales and rentals have dipped 25% in the past year. Because of this situation, Netflix ended its DVD-by-mail service last year. The deal hints at a wider spectrum of changes and evaluations undertaken by Disney to review how it best reaches its consumers. Sources close to the companies claim that the production house is under pressure from its investors to offer more cost-efficient solutions.

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Being a family entertainer, Disney has always focused on the best way to reach households so that everyone can enjoy the movies. With this deal, the studio will meet consumer demand efficiently. Before streaming took over, Disney made more profits with DVD sales since people wanted to rewatch the movies repeatedly, so it seemed like a prudent investment. Even now, die-hard fans who enjoy collecting physical copies of movies like to purchase discs rather than stream digitally. Moreover, extraordinary cinephiles enjoy watching movies in the highest resolution possible which is 4k Ultra HD, available predominantly on DVD. This was why Oppenheimer disc sales skyrocketed last year, making every retailer sell out in no time.

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