Ingram Entertainment Exits Physical Media Business

[InuYashaCrusade]

Ingram Entertainment, Once the Largest Home Entertainment Distributor, Exits Disc Business

https://www.mediaplaynews.com/ingram...disc-business/

Ingram Entertainment is getting out of the DVD and Blu-ray Disc business.

“Expenses are exceeding sales [so it’s] time to exit,” chairman and CEO David Ingram told Media Play News. “Every associate who fulfills their obligations and parts on good terms is getting severance. Our exit from the industry is orderly and most customers and studios have been notified. We will be around for a while as we reduce inventory. We have no bank debt.”

Once the largest distributor of physical media home entertainment product, the La Verge, Tenn.-based company consolidated disc distribution even more through its 2019 acquisition of Baker & Taylor, another large distributor of home entertainment products.

At the time, chairman and CEO David Ingram said in a news release that “structural changes in the physical home entertainment marketplace” triggered the deal.

Steve Scavelli, who owns one of the few remaining home entertainment distributors, Flash Electronics of Brooklyn, N.Y., said, “This is not surprising. Everyone knows physical media as a percentage of home entertainment has been declining for the last 20 years, and especially for a large company with large overhead it’s next to impossible to make a profit. Ingram has been a stalwart of the industry for many years, and I’m sure this decision came from a financial perspective of just not enough product and not enough business in the physical realm.”

[An4h0ny]

This is really wild.

https://cordcuttersnews.com/the-deat...ing-them-soon/

This comes as Walmart may be considering taking over management of Studio Distribution Services (SDS), which handles the distribution of physical media.

Walmart submitted a request for proposal for SDS, according to Media Play News. The move would help streamline the distribution of merchandise from studios to independent suppliers. Walmart would assist SDS in managing physical entertainment merchandise.

The proposal marks a change in Walmart’s DVD and Blu-ray Disc sales process, valued at $936 million. Instead of selecting one representative from each studio to analyze data and conduct market research, SDS could consolidate efforts across a larger number of studios. In addition to crunching numbers, the deal would encompass shipping and distribution as well.

In 2021, Universal Pictures and Warner Bros. partnered to form SDS. The studios and other distribution partners use SDS to sell DVDs, Blu-Ray discs, and 4K Ultra HD Blu-Ray discs throughout the U.S. and Canada. SDS offers end-to-end packaged media distribution services across sales, trade, retail marketing, finance, and supply chain services for dozens of studios and franchises.

Disney has also stopped selling physical discs in different parts of the world as the sales of these disks continue to decline, although it is releasing Blu-Ray and 4K Ultra HD versions of Disney+ shows such as Loki, Wandavision and The Mandalorean starting later this month.

[sonicyogurt]

Originally Posted by An4h0ny

This is really wild.

Cord Cutters News is mangling the original reporting from Media Play News that they’re referencing. The original report is that Walmart is said to have sent out RFPs to a number of different suppliers to help manage Walmart’s home video business, reportedly selecting SDS. Cord Cutters News somehow flipped the script, making it sound like Walmart’s taking over SDS and what’s left of the home video industry.

[kevin87]

Also getting out of music, so it's all discs not just movie discs.

[WBMakeVMarsMovieNOW]

meanwhile streaming almost universally has huge net losses, what a mess, should've never left physical media model to begin with, they all made zillions of profit then

[DukeTogo84]

I feel like I should know who Ingram Entertainment is, but have never heard of them. What exactly were they distributing recently?

[cheez avenger]

Originally Posted by WBMakeVMarsMovieNOW

meanwhile streaming almost universally has huge net losses, what a mess, should've never left physical media model to begin with, they all made zillions of profit then

Does it? Not subscription services, how are digital rentals/purchases doing?

[steve_dave]

Originally Posted by DukeTogo84

I feel like I should know who Ingram Entertainment is, but have never heard of them. What exactly were they distributing recently?

They handled distribution for most studios to retailers/etailers and consumers. Target, Walmart, and Gruv had Ingram ship orders directly to consumers.

[Mikezilla3k]

Originally Posted by steve_dave

They handled distribution for most studios to retailers/etailers and consumers. Target, Walmart, and Gruv had Ingram ship orders directly to consumers.

Well, shit. There goes any more releases in stores then I'm guessing.

[DukeTogo84]

Originally Posted by steve_dave

They handled distribution for most studios to retailers/etailers and consumers. Target, Walmart, and Gruv had Ingram ship orders directly to consumers.

Hmm. So, they had a pretty large role in things. So not sure what this means. Will someone else take their spot or will physical media not get distributed at the current level. Not exactly sure what this means.

[steve_dave]

Originally Posted by WBMakeVMarsMovieNOW

meanwhile streaming almost universally has huge net losses, what a mess, should've never left physical media model to begin with, they all made zillions of profit then

Read the article, this is not about physical versus digital. Stop bringing that argument into these conversations.

“Expenses are exceeding sales [so it’s] time to exit,” chairman and CEO David Ingram told Media Play News...

Basically the economics of the market and running a company overwhelmed them. Digital has nothing to do with this and Ingram kept the physical market going for decades. Unfortunately, like other business, the years in business do not pay bills.

[steve_dave]

Originally Posted by DukeTogo84

Hmm. So, they had a pretty large role in things. So not sure what this means. Will someone else take their spot or will physical media not get distributed at the current level. Not exactly sure what this means.

No one knows yet. Especially since Ingram acquired another distributor in 2019. The company will fulfill orders until all disc stock is depleted, they will still handle distribution of merchandise. Just not DVDs, Blu-rays, or 4K UHDs.

We probably won’t know how impactful this is. They surely can not run out of stock by Black Friday. Could they?

[WBMakeVMarsMovieNOW]

Originally Posted by steve_dave

Read the article, this is not about physical versus digital. Stop bringing that argument into these conversations.

1. it is true it is not physical vs. digital, since physical post-VHS IS digital
2. but yes this is about physical media vs. streaming/downloads since they even said the reduced volume hurt and made it hard to keep it going for them

[ThePhantom]

Originally Posted by steve_dave

Basically the economics of the market and running a company overwhelmed them. Digital has nothing to do with this and Ingram kept the physical market going for decades.

I'm not sure how you can claim that the rise of streaming had nothing to do with the decline in sales that resulted in them exiting the physical media business.

[koberulz]

"But physical isn't dying!"

[Trekkie313]

Some other company will step up, just like how comics distribution has changed hands from one giant company to another.

[Taylor3978]

Originally Posted by Trekkie313

Some other company will step up, just like how comics distribution has changed hands from one giant company to another.

Not the same situation at all. The major comic companies no longer wanted to rely on Diamond alone for distribution, and if anything demand in the market was increasing, enticing companies like PRH to branch out into comics distribution.

Here demand is cratering and companies are getting out because there's just not enough business for it to be worth while. What's the business case for someone coming in to replace these companies?

[Ruined]

Originally Posted by cheez avenger

Does it? Not subscription services, how are digital rentals/purchases doing?

From the charts I've seen digital rentals/purchases have basically failed to catch on. Streaming subs is the digital area people spend their money.

[Member-222782]

I don't think there's much to lose sleep over - these large distributors are just middlemen. Plus, many boutiques employ any number of several smaller distributors that probably have no immediate plans of closing shop, not to mention some boutiques self-distribute. Personally, I'm not worried that I won't find a copy of Fast X at Best Buy.

[InuYashaCrusade]

Originally Posted by ThePhantom

I'm not sure how you can claim that the rise of streaming had nothing to do with the decline in sales that resulted in them exiting the physical media business.

The denial is wild. It's like people would rather lie to themselves than face the facts.