Forget Netflix. Bye Hulu. Universal Pictures and Warner Bros. want you to watch DVDs.
The rival movie studios want more customers watching DVDs, so the two brands inked a 10-year joint venture to release new content on DVDs and Blu-ray.
Ron Sanders, Warner president of theatrical distribution and home entertainment, said in the announcement that the physical business, meaning DVD sales, is still important.
The “proposed venture gives us the best opportunity to foster innovation in this business, optimize the physical offering and extend the lifespan of the format for our fans.”
The deal comes at a time where more than 60 percent of last year’s $25 billion home-entertainment revenues came from streaming, and only $6 billion came from elsewhere.
Neither Universal or Warner immediately responded to a request for comment from FOX Business.
While the companies often compete head-to-head for the same audience (think “The Secret Life of Pets” versus “Kangaroo Jack,” or “Jurassic Park” and “The Last Dinosaur”), the deal would allow each to distribute movie and television titles in the United States and Canada, combining sales, retail marketing and distribution.
The firms can also license each other’s disc products in certain offshore markets.
Under the proposed venture, however, the studios will continue to operate independently and retain content and their marketing for both digital and physical, according to Deadline.
Both studios brought in $1.4 billion in U.S. box office revenue in 2019.