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Should We Move to a Digital-Only World of Entertainment Products?

In 2023, Best Buy dropped a bombshell: no more DVDs or Blu-rays by early 2024. This move wasn’t exactly groundbreaking, considering the streaming boom. The decision followed Netflix’s DVD-by-mail closure, highlighting the industry shift to digital-only entertainment goods.

Best Buy’s spokesperson noted the obvious — our viewing habits have evolved. Streaming offers convenience, but it lacks permanence. DVDs ensure ownership, whereas streaming’s uncertain rights mean potentially losing access. Yet, clutter-free streaming and instant gratification are undeniable perks. Furthermore, digital media is more sustainable and eco-friendly.

While movies may be fading from Best Buy’s shelves, the fate of physical video games remains uncertain. The gaming industry has been steadily moving toward a digital future, with over 70% of game sales being digital in 2022. This shift is evident in Best Buy’s gaming sections, which have dwindled compared to their former glory days.


Although digital media offers convenience, concerns arise regarding ownership rights and preservation. Despite this, new video game releases are bypassing physical distribution entirely, signaling a potential future dominated by digital-only gaming.

For collectors and preservationists, the changing landscape raises uncertainties about the future of physical media. While physical games may linger in niche markets, the trend toward digital-only gaming seems inevitable. As technology evolves, Sony and Microsoft are embracing a future where discs are relics of the past, catering to a generation that is becoming more used to a digital-only world.

However, with this big push from businesses to go completely digital, consumers are pushing back. A recent thread on Reddit explained how “people are losing access to their digital licenses.” There have also been many influencers on social media, especially YouTube, who have been urging people to start collecting DVDs and physical media.


Consumers who purchase and download digital video games have recently learned that Sony has the ability to cut off a user’s access to demos and digital games without warning and with no repercussions. The company did this recently with a demo it accidentally released and then deleted from the PlayStation Store soon after, “redacting access for users who downloaded it.” This has left many dealing with the fact that they are powerless to enjoy the digital media they supposedly own.

The lack of ownership has also become a frustrating problem for users who paid for subscriptions and digital downloads of Japanese anime from Funimation, a streaming platform.

Funimation announced that it is closing its doors on April 2, 2024. In the past, anime aficionados could pick between Crunchyroll, the largest anime streaming platform, and Funimation. However, Sony’s acquisitions of both platforms in recent years led to a monopoly in the anime streaming world. As a result, premium Funimation account holders will face Crunchyroll’s pricing regime from now on.

But that’s not the only blow. For those who purchased physical movies that came with digital codes for the movies on Funimation, Crunchyroll won’t honor these digital downloads. These codes weren’t just perks for subscribers; even non-subscribers could cash in by purchasing physical copies. Now, that avenue is closed forever, a huge setback for the anime community.

The debate over the relevance of physical media has sparked varied opinions. Some view it as outdated, citing concerns about physical storage space, collectors’ hoarding habits, environmental considerations, and potential damage to discs. Others have also complained about the cumbersome process of rummaging through shelves to locate the desired DVD, extracting it from its case, inserting it into the DVD player, and finally firing it up to play.

On the other hand, many influencers and consumers have engaged in discussions highlighting the advantages of physical media beyond mere collection or resale purposes. They emphasize the satisfaction of ownership and the ability to repeatedly watch their cherished content. Criticism has also been directed toward the increasing inconvenience of managing multiple streaming subscriptions to access desired movies and shows. The shifting licensing agreements among platforms often result in frustration for consumers who may find their preferred content unavailable on their subscribed services.

Moreover, cinephiles express concerns about the preservation of specific cuts or versions of films, which are often only available through physical copies, as streaming platforms typically offer only the latest or altered versions. Thus, the conversation surrounding physical media extends beyond its materiality to encompass considerations of accessibility, preservation, and viewing experience.

An important relative of the entertainment industry is music. For the past several years, vinyl records saw a resurgence in popularity, surpassing CD sales and helping boost the music industry away from becoming completely digital. In 2023, U.S. vinyl sales continued this rise for the 17th straight year, but that growth is reported to be losing momentum.

In Japan, music cassettes are becoming the hottest music trend. Stores in Tokyo are expanding their cassette tape sections, indicating a revival of analog recording media. Tower Records has seen a surge in cassette tape popularity, especially among those in their 20s and 30s. Sales of both new and used tapes are on the rise.

Last September, Tower Records Shibuya expanded its cassette section to 3,000 tapes, with those in their 30s being the main buyers, attracted by the tapes’ novelty. Vinyl records are also gaining traction, but cassettes are more affordable, making them a popular analog choice. The owner of Waltz, a cassette specialty store in Tokyo’s Nakameguro district, notes a shift in the cassette business landscape. Major artists are now releasing songs on cassettes, boosting their market value.

New cassette tape players are hitting the market, catering to both analog enthusiasts and tech-savvy youth. Apparel brands are also embracing cassettes, using them as invitations or keepsakes, showcasing their versatility in modern times.

Discussion Questions

How can businesses navigate ethical issues related to consumer access and rights in the digital media landscape dominated by streaming platforms like Netflix and Spotify, especially in the wake of closures like Funimation?

Amidst the shift toward digital-only distribution, how can businesses balance digital convenience with ensuring consumer empowerment, particularly in niche markets where physical media holds cultural significance?

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BrainTrust

"Sure, there will be small pockets of analog enthusiasts, but the high, high majority of users will continue to leverage the digital assets we’ve all become accustomed to."
Avatar of David Spear

David Spear

VP, Professional Services, Retail, NCR


"I like classic movies, and I’ve found the hard way that access to some of my favorite titles, even ones I’ve paid for and supposedly owned “forever,” has gone away."
Avatar of Gary Sankary

Gary Sankary

Retail Industry Strategy, Esri


"If the world becomes 100% digital, then we are at the mercy of technology and whatever access sellers choose to give us. I don’t think I like that world."
Avatar of Georganne Bender

Georganne Bender

Principal, KIZER & BENDER Speaking