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![Signing for media brand Disney Store on December 19, 2020 in London, England. The Walt Disney Company, commonly known as Walt Disney or simply Disney, is an American multinational mass media and entertainment conglomerate. (Photo by Mike Kemp/In Pictures via Getty Images)](https://variety.com/wp-content/uploads/2024/02/GettyImages-1230436485.jpg?w=681&h=383&crop=1)
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Disney has outsourced much of its home entertainment division to Sony Pictures Entertainment, which will manufacture, distribute, and sell the Mouse House’s DVDs, Blu-ray discs, and other physical media.
As part of the agreement, Sony will market, sell and distribute all Disney new releases and catalog titles on physical media through retailers and distributors in the United States and Canada. Disney will continue to manage its own digital media, including premium video on demand.
It’s unclear whether this will lead to job cuts at Disney. However, the studio plans to conduct an internal evaluation across all business functions that support physical entertainment in its transition to Sony, according to people familiar with the deal.
Disney says this licensing model allows studios to continue offering movies and TV shows through physical retail stores, allowing them to more efficiently meet consumer demand. The company said this transition is consistent with its strategy across the company and shifts in other markets.
Whatever the reason, physical disc sales have been in decline for a long time and show no signs of recovering, even amid the industry’s streaming boom. US physical media revenue in the first half of 2023 fell 28% to $754 million compared to $1.05 billion a year earlier, according to data from industry group DEG: The Digital Entertainment Group. Ta. 2024 is predicted to be the first year in which sales fall below $1 million.
As a result, Best Buy will stop selling DVD and Blu-ray discs in stores and online in early 2024. The move followed Netflix’s decision to end its DVD-by-mail service last September. Walmart, Amazon, and Redbox are among the selected major retailers that sell copies of “Avatar: The Way of Water,” “The Avengers,” or other Disney blockbusters.
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