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DVD sales plummet - bull-whip effect?

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Tue, 07/05/2005 - 20:53 — Christoph C. Cemper

The BW article End of the DVD Party says that altough DVDs are a top market, the

Quote:

major retailers have noticed that DVD sales have been softer than anticipated recently

while the DVD release time span for moving a film from theater to DVD took an average of 200 days in 1998 (nearly seven months). Today that's about 137 days – around 4.5 months, according to industry newsletter DVD Release.

this leads to the shocking result:

Quote:

Retailers increasingly are shipping back unsold DVDs — even those as hotly anticipated as Shrek 2 or The Incredibles — because they don't have enough shelf space to keep all those titles, figure several analysts.

I doubt that sending back blockbusters would be a good idea for most retailers… what about their other inventory? This sounds more like a big problem in the supply chain… maybe the bullwhip-effect on current DVD markets?

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