DVD sales have declined, causing a current problem for Sony Corporation's subsidiary, Sony Pictures Entertainment. Sony Pictures Entertainment Inc. has seen a sharp decline in revenue in recent months. DVD sales have fallen to a worrying level and, as a result, have left financial analysts and industry specialists deeply concerned. We went into the field and conducted a series of interviews to decipher the rationale behind the lack of DVD sales. Through the course of the following research and our detailed analyzes of the interviews, we hypothesize that the decline in sales is due to a number of interrelated reasons including the current economic state and an advancement in technologies that offer consumers many alternative options to DVD. Literature ReviewIn the past, production companies could predict how well a film would sell on DVD based on its box office performance. This is no longer the case, as box office hits such as “Indiana Jones and the Kingdom of the Crystal Skull” and “Hancock” have sold far below their expected DVD quantities. This is a relevant issue since DVDs are a large revenue center for Sony Pictures Entertainment. President and CEO Michael Lynton said the following regarding the declining DVD market: "it's not just shrinking, but it's becoming more volatile and unpredictable than it has been in the past." Consumers are not only buying fewer DVDs, but they have also developed a new, unforgiving awareness of quality. (Goldstein, 2009) Unlike its competitors, Sony Pictures Entertainment caved to Red Box the first time around and signed a contract to provide DVD rentals the same day they go on sale. This was a potentially damaging decision considering other manufacturers... middle of paper... some insight into declining DVD sales. Most attribute their negligence in purchasing DVDs to an aspect of price. We heard that DVDs are too expensive, and our interviewees mentioned the cheap Red Box rental. Quality was also mentioned, regarding poor quality online streaming and even the quality of the production itself. This awareness of quality, discussed in Goldstein's Los Angeles Times article, is evident in the minds of our interviewees. Netflix, Red Box and online streaming were all cited as DVD replacements by our respondents. Technology definitely influences the decision making of these movie consumers. These interviews validated our above suspicions and literary hypotheses that the decline in DVD sales is due to both the negative change in the economy and advances in technologies.