The world's largest entertainment company, Walt Disney, is reportedly selling most of its DVD and Blu-ray business in the U.S. and Canadian markets to Japan's Sony Group, Bloomberg News reported on the 21st (local time), citing anonymous sources.
DVDs and Blu-rays are representative home video formats. This business model involves selling content such as movies and animations stored on these media so consumers can enjoy them at home. In the late 2010s, as global OTT (Over The Top) platforms like YouTube and Netflix expanded their market dominance, the home video market significantly contracted.
Walt Disney is reportedly shifting its home video business to a license model. Accordingly, Bloomberg reported that Sony Group will manufacture discs and sell them to retailers, changing the business structure. Sony Group is a strong player in the traditional electronics industry.
Walt Disney had already ceased disc sales operations in Australia and New Zealand last year. In South Korea, it withdrew from the home video market in 2022.
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