DVD spells digital video decline

December 21, 2006 Persistent year-over-year declining sales of DVDs at Best Buy and Circuit City stores might portend trouble for the movie industry, according to a Wall Street analyst report released Wednesday. Pali Research analyst Richard Greenfield, who raised concerns about the home video industry in October with a report titled "DVD Party is Over" and again last week, said Wednesday that "2007 appears even more ominous for film studios." While many Wall Street observers focused on falling prices for flat-panel television sets, Greenfield keyed in on DVD sales at Circuit City and at its archrival Best Buy, which reported better-than-expected quarterly results last week.

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