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The trend has been revealing itself now for a few years: streaming subscriptions are falling, all the while physical media sales continue to rise. Although the overall sales of DVDs are by no means close to where it was even ten years ago, the market is one that is still hanging on, and seemingly gaining traction.
There are many factors to point to that could explain why this might be happening, from the cost of streaming services, increasing acts of censorship, and concerns about the long-term ownership of digital content. For the purposes of collecting, sentimentality, or community, the DVD isn't dead yet.
The Cost of Streaming
Perhaps one of the most telling signs of an impending threat to streaming services is the fact that more and more customers are cancelling their paid plans.
In fact, a quarter of viewers in the U.S. who subscribe to major streaming services such as Netflix, Amazon Prime, Disney+, Hulu, or Apple TV+ have cancelled at least three of those subscriptions since 2022. A sharp uptick from only 15% in 2020.
Embed from Getty ImagesThe rising cost of streaming services is often one of these reasons. Premium Netflix subscriptions have shot up to $25 a month. Consumers are understandably drained. In an attempt to gain back some of the lost subscribers, services have begun offering ad-supported plans. An option that 60% of Disney+ users have chosen. Even then, if one were to pay for the lowest-tier subscriptions of Netflix, Prime, and Disney+, it would add up to an annual cost of $355. And that's only for three services.
The prevalence of streaming services in the current media landscape means that there are not a lot of other options consumers choose to turn to. Out of those that do cancel their streaming subscriptions, 39% re-subscribed within less than a year. Yet, streaming services are still losing 61% of customers.
Who Owns What?
When you sign up to use a streaming service, purchase a film online, or watch it with ads, at no point do you ever "own" it. Rather, streaming services license the film out to viewers. Unlike a physical DVD, digital moviegoers never buy the film itself, but rather the permission to watch it from a streaming company.
Having signed up for a service, the viewer then enters an agreement with the streamer. However, because of the licensing accord, the streaming service is obligated only to distribute a film so long as they have the rights to it. In fact, they can remove a film from your personal library even if you have purchased it, if they lose the rights to distribute it.
A class action lawsuit was filed against Amazon, accusing the platform of misleading consumers. Namely, that there was a significant discrepancy between the prices for "renting" versus "buying" a film, when the consumer only ever pays to enter a sub-license agreement to view the content.
Even without the right to certain content being pulled, using a streaming service itself can come with unexpected consequences. In another case, the free streaming service Tubi was sued for allegedly disclosing the personal information of users without their knowledge or consent.
Embed from Getty ImagesThe Problem with Censorship
What you watch online may not even be the same as what the filmmakers made in the first place. As corporate entities, your streaming services have the power to alter the content they license in order to adhere to regional regulations.
Let's take a look at one example. In Turkey, streaming services are now required to apply for a licence through the country's Radio and Television Supreme Council, which serves to regulate and restrict the content that the Turkish people can access.
What counts as "dissident content"? Anything that goes against the amendments of the "Internet Law" and gives authorities the power to prosecute those who, among other potential offenses, share media "purely with the intent to cause anxiety, fear or panic, false information about the country’s internal and external security, public order and general health in a way likely to damage the public peace."
Operating under these restrictions, Netflix and other streamers have been forced to alter content in order to adhere to the demands of each country, sometimes banning certain media from platforms outright. In 2019, the streamer removed an episode of "Patriot Act with Hassan Minhaj" after demands from the government of Saudi Arabia, after the comedian criticized Crown Prince Mohammed bin Salman.
These issues are not just relegated to Turkey or Saudi Arabia. In fact, circumstances such as these influence additional changes that streamers can make to content in other countries.
Companies such as Disney+ and HBO Max have gone on to make seemingly innocuous changes to some of the content on their platforms. Disney has once again edited Star Wars Episode IV, revising the shootout between characters Han Solo and Greedo. Changing the scene to show that no, Han does not shoot first, not after Greedo infamously and inexplicably utters the word "Maclunkey"
Disney has also taken on other, just as seemingly unimportant matters, such as artificially covering Daryl Hannah's bare behind in an edit of Splash. Similarly, HBO Max has been taking the moral high ground and removing cigars from the hands of Warren Beatty and Paul Newman.
Although such seemingly minor issues of censorship appear to have no bearing on the restrictive practices of other governments, a precedent has been set. Caving to censorship on demand in order to appease those in charge of foreign markets doesn't just open the door to more edits and censorship in media– it shows that they can actively be invited in.
The Resurgence of Physical Media
With all of the financial and social issues that impact media consumption, the humble DVD has begun to creep its way back into the market.
More and more young people are making what was old, new again, by buying physical media, with sales rising by around 15%. DVDs provide a more analogue form of entertainment compared to the constant availability and ease of streaming.
Issues such as the rising cost of streaming subscriptions, licensing agreements, lawsuits, and digital alterations are influencing the return of media collecting. Being able to hold and interact with a film, displaying it on a shelf, browsing through special features, and the personalized choice that comes with curating your own collection provides a much-needed relief from online algorithms and the endless scroll for something to watch.
The return of the DVD collection signals not only a change in our consumption but the ways in which we choose to interact with media. It gives you something to talk about, something to share, something to invite your friends to come to your house to watch and chat about together.
In the face of an ever-growing array of streaming services and more online forms of media, the DVD represents a return to basics. It shows that consumers are looking for something different than the same algorithms. More importantly, it displays that there is a growing shift in the market. Something that production companies like NEON and A24 are well aware of and keeping up with.
What remains to be seen, however, is whether the trend keeps up. We may be on the cusp of a total physical media resurgence, something that all DVD collectors will no doubt be pleased with.