The big Hollywood studios have been aggressively promoting their hot new movies with online EST (Eletronic sell-through) mediums such as CinemaNow, Apple’s iTunes, and Movielink with minimal results. Looking back, in 2006 we were introduced to the next wave of movie formats to help pick up the slumming industry including HD-DVD and Blu-Ray Disc. Both of this, unfortunately, cost nearly $1,000 for a player and $20 - $40 for a movie disc.

At the end of 2006, as we look back we are noticing that high-def discs and online movie downloads are just a blip on the radar as the home entertainment and DVD market is begining to resurge during the 3rd quarter of 06′.

As Kelley Avery, president of worldwide home entertainment at Paramount Pictures, put it, “Contrary to popular belief, reports of the decline of DVD have been exaggerated.”

“What we’re looking at is a market that is up slightly from last year, overall,” Sony Pictures Home Entertainment president David Bishop said. “But if you break down the components, we’re projecting DVD sales to be up 3%, year-over-year, and rental to be up about 12%. What drags the industry down to a flat or slightly up basis is that VHS sales and rentals are virtually going away.”