Discs ditched as Kmart says goodbye to DVD and CD sales

DVDS and CDs are being dumped from shop shelves in another sign of the discs’ demise.

Kmart will oust the entertainment offering in favour of new kids products.

It comes as streaming services and digital downloads continue to chomp into physical sales.

Australian Retailers Associ- ation boss Russell Zimmerman predicted other major retailers would follow Kmart’s lead.

“I would have my head in the sand if I didn’t think that was going to be the case,” he said.

“Most people now just download their music or have a streaming service so the way in which we buy music and even DVDs has changed dra- matically.

“Kmart has made the decision quite clearly to remove those options so they can make space for a far more viable product on their shelves.”

Australians splashed $663.7 million on DVDs and Blu-ray products last year, compared with $978.3 million three years earlier.

Rentals also halved over the same period and online music sales are now worth three times more than physical purchases.

IBIS World analyst Kim Do said DVDs and CDs were on track to become as outdated as videotapes and cassettes.

“The competition coming from online streaming services like Netflix and Stan is significant and it gives people options at their fingers and often at a lower price point,” she said.

“Sales are just going to keep declining over the next five years and decade.”

IBIS World also found that the number of video rental stores was in freefall and would plummet to just 245 by 2023 — down from 2435 in 2007.

Despite the diving sales, Australian Home Entertain- ment Distributors Association chief executive Simon Best said it was “a bit of a surprise and disappointment” that Kmart ditched DVDs and CDs.

“Home entertainment and DVD is still a vibrant area of retail,” he said.

“Customers expect to be able to go into Kmart and pick up a children’s movie or other DVD as they walk through.”