Originally Posted by bruceames
Redbox rentals are a factor, but I don't think it's the main factor. Here are some others:
1) saturation of the market (the biggest factor). DVDs are everywhere, including unwatched in shrink wrap in people's homes
2) price erosion due to the above. Titles are underselling, resulting in more clearance pricing, which negatively affects revenue.
3) Introduction of a superior format. This would affect DVD by firstly devaluing the product, as it is now a second best product, and also by discouraging consumers from buying a format that was rendered technically obsolete after just 9 years. Many won't make the same mistake with Blu-ray.
4) The economy (which is now starting to slowly recover)
5) Bit torrents and cheaper internet alternatives
6) streaming and other more "convenient" ways to choose and watch a movie
7) the introduction (or increased use) of very addictive time hog pastimes, such as facebook, the internet in general, and gaming.
Also fewer and fewer storefronts will have some effect on sales. Many retailers who carried items like media have closed in the past 2 years. Including Borders, Blockbuster, Circuit City some of the Barnes and Nobles, Hollywood Video, Virgin, Saturday Matinee, Suncoast etc (the list goes on and on). This has caused me to impulse buy less and less now.