One of the largest distributors of DVDs and Blu-rays has said it plans to stop selling them soon. Ingram Entertainment told Media Play News that it will get out to the business.
“Expenses are exceeding sales [so it’s] time to exit,” Ingram Chairman and CEO David Ingram said. “Every associate who fulfills their obligations and parts on good terms is getting severance. Our exit from the industry is orderly, and most customers and studios have been notified. We will be around for a while as we reduce inventory. We have no bank debt.”
This comes as Walmart may be considering taking over management of Studio Distribution Services (SDS), which handles the distribution of physical media.
Walmart submitted a request for proposal for SDS, according to Media Play News. The move would help streamline the distribution of merchandise from studios to independent suppliers. Walmart would assist SDS in managing physical entertainment merchandise.
The proposal marks a change in Walmart’s DVD and Blu-ray Disc sales process, valued at $936 million. Instead of selecting one representative from each studio to analyze data and conduct market research, SDS could consolidate efforts across a larger number of studios. In addition to crunching numbers, the deal would encompass shipping and distribution as well.
In 2021, Universal Pictures and Warner Bros. partnered to form SDS. The studios and other distribution partners use SDS to sell DVDs, Blu-Ray discs, and 4K Ultra HD Blu-Ray discs throughout the U.S. and Canada. SDS offers end-to-end packaged media distribution services across sales, trade, retail marketing, finance, and supply chain services for dozens of studios and franchises.
Disney has also stopped selling physical discs in different parts of the world as the sales of these disks continue to decline, although it is releasing Blu-Ray and 4K Ultra HD versions of Disney+ shows such as Loki, Wandavision and The Mandalorean starting later this month.
But increasingly, DVDs and Blu-rays are going the way of VHS tapes as many people move on to streaming.