Digital Sales Cool Off

According to an article published today by The Globe and Mail, it is becoming more and more obvious that digital sales will not replace DVD revenues. Citing a report by IHS Screen Digest, a media research firm, the article clarifies that after an initial surge in digital retail, sales have flattened out.

Dan Cryan, the author of the report, also concludes that "If the studios are still expecting digital retail to save their bacon, they are in for a rude surprise."

However, as far as digital rentals are concerned, the report finds that there is some room for expansion, but this is an area of the business that offers lower margins than digital sales.