Nowadays, people watch movies on their phones or televisions instead of buying DVDs. The graph compares the revenue from DVD sales with the total revenue from video streaming between 2010 and 2019. It shows that DVD revenue decreased, while streaming revenue increased, mainly because consumers no longer want to go out and purchase discs.
In 2010, DVD revenue stood at $16,000 million, while streaming revenue was only about $4,000 million. After that, DVD revenue declined each year, falling to approximately $12,000 million in 2012 and $8,000 million in 2014. By 2019, DVD revenue had dropped to around $5,000 million. In contrast, streaming revenue rose steadily from $4,000 million in 2010 to about $8,000 million in 2014. In 2014, the two lines crossed, meaning both revenue streams were equal at roughly $8,000 million. Subsequently, streaming revenue grew rapidly, reaching about $16,000 million in 2019 – four times its 2010 level.
Several factors explain this trend. First, faster internet speeds and the proliferation of smartphones and smart TVs made it unnecessary for people to leave the comfort of their homes, so streaming became the preferred option. Second, streaming offered greater convenience because viewers could watch content at any time without visiting a shop. Moreover, a monthly subscription was typically cheaper than buying numerous DVDs. Consequently, consumers increasingly switched to streaming, making 2014 a pivotal year when streaming became more profitable than DVD sales.
In conclusion, the graph clearly demonstrates that DVD revenue declined while video streaming revenue grew between 2010 and 2019. This shift was driven by technological advances, convenience, and cost-effectiveness. If this trend persists, DVDs may eventually become obsolete.