Walt Disney is winding down its DVD and Blu-Ray business, and is handing off the responsibility for its physical media to Sony Pictures.
The handover comes as Disney alerted members of its Disney Movie Club that it is shutting down, with final orders placed by May 20. The news was first reported by The Digital Bits, and was confirmed by Cord Cutters News.
The move comes amid declining sales of physical media, with even retailers like Best Buy largely abandoning the medium. With more consumers cutting the cord and relying on streaming services, there’s far less demand for physical discs beyond hardcore fans or enthusiasts.
Disney in particular has significantly reduced its focus on physical media as it spent heavily on content for its Disney+ and Hulu streaming services. The company last year ceased selling physical discs in Australia.
Under the licensing deal, Sony will market, sell, and distribute new releases, as well as produce discs for its back catalog of titles for retailers in the U.S. and Canada.
The Digital Bits has a nice, in-depth breakdown of how complicated things had gotten within Disney’s physical media business, and why it seemed to move so slowly.
The hope is with Sony taking over, more physical media will come out to serve those fans. Disney, thanks to its acquisition of FOX studios, has one of the richest back catalogs of films and shows in the industry.
Image credit: Disney