Ars reports that DVD and Blu-Ray sales are up during the first half of 2008, compared to the first half of 2007. Rentals are up even more. Apparently, downloading is not as prevalent as the MPAA would make it seem. Adams Media Research concluded that “there is very little digital downloading going on.” People are still willing to pay Netflix that $17 a month for three DVDs at a time.
A side note: Ars suggests that movie rentals may be an inferior good. In a weakening economy, Ars contends, “perhaps part of consumers’ money-saving efforts involve cozying up to a movie at home for entertainment instead of heading out for a night on the town—or downloading from the Internet.”