As sales for DVDs and Blu-ray Discs plummet, 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.
SDS has distribution partnerships with Elevation Pictures, PBS, Shout! Factory, Castle Rock Entertainment, BBC, VIZ Media, to name a few. It represents HBO Max, Cartoon Network, Adult Swim, New Line Cinema, DreamWorks, SyFy, Bravo, and more.
Walmart sells more DVDs and Blu-ray Discs than any other retailer. Its sales make up approximately 45% of the market, according to Media Play News, totaling $2 billion in annual sales. However, more people prefer streaming and on-demand content over physical copies. Last year, Walmart cut retail space by 20% last year, roughly the same percentage overall DVD and Blu-ray Discs sales fell in 2021, according to Forbes.
Walmart’s proposal page states there are no current requests pending. The company was not immediately available for comment.
Check back with Cord Cutters News as more details emerge.