Uh-Oh – DVD Sales Are Slumping Too

There are “small but troubling signs are emerging that the DVD market’s growth could be trailing off faster than Hollywood expected. On June 30, Pixar Animation Studios (PIXR ) cut its earnings-per-share estimate for the second quarter to 10 cents from 15 cents, due to slower-than-expected DVD sales of its blockbuster The Incredibles. The stock of Dreamworks Animation (DWA ) dropped sharply in mid-May, after the studio reported that returns of its own blockbuster Shrek 2 left sales 5 million short of its forecasts. Major retailers have noticed that DVD sales have been softer than anticipated recently, too.”