Our April DVD/Blu-ray sales we were up 18% in this economy! How? By making high quality content and selling it at a good price. We’ve had to promote our way thru the recession, but are finding if you give the customer a good deal on great content they will spend. Prices on DVD will drop, just like they did with VHS…but they are a long way from being dead.

We are picking up more and more market share in the "packaged media" market because we have fresh new content (not compilations) and Blu-ray. We practically own the gay adult Blu-ray market in the USA and EU. This is still a high end small niche, but it’s a profitable one. When someone buys a Blu-ray player we see them come to our online store and buy 4+ Blu-rays at a time…at regular price! Do I think that the Blu-ray customer will buy “reality” content shot on a couch, probably not. They are a high end customer that wants high production values and “fantasy” porn.

I will admit we have a unique advantage in the packaged media arena because of our established brand name and image. If I were a start-up brand at this time I would not waste my resources trying to compete in the packaged media market, I would focus my resources on digital delivery and sales. The cost of entry into the packaged media market at this time in the product lifecycle is not a smart use of resources for a new company/brand.