Television and movie content providers are at risk because Netflix (NFLX) and other entrants have disrupted physical media sales by streaming media.
Today there is a lot of competition and uncertainty as to which media platforms will survive or dominate in the future. Amid such competition investors must demand low valuations from viewing platforms.
Falling DVD Sales
Consumers in the U.S. cut their spending on home entertainment by 1.5% during the fourth quarter by spending fewer dollars on DVDs rentals and purchases.
According to the Digital Entertainment Group, the total spending for last quarter of 2012 decreased to $5.66 billion as compared to $5.74 billion during the same period last year. Total expenditure on DVDs was almost flat for 2012, rising only 0.2% $18 billion for 2012. In contrast, spending on subscription services, downloads and video on demand increased 25% to $1.49 billion during the quarter. Annual pending
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