Hollywood's cash cow, the DVD, is fast becoming deader than Michael Jackson as cash strapped punters turn to renting to save cash.
New data released Thursday by the Digital Entertainment Group, an industry trade organisation, showed that movie rental revenue rose 8 per cent in the first half of the year. This was the industry that many had written off because Hollywood said it had been killed off by P2P piracy.
At the same time, sales of DVDs have fallen by 13.5 per cent. DVDs have providing the biggest chunk of movie revenue. Sales started slipping last year, however, proving a serious threat to studios' bottom lines. Blu-ray disks and digital distribution over the Internet have grown but not enough to make up for the DVD slump.