For the past 5 years DVD sales world wide have been diminishing substantially. This is due to several reasons. Firstly piracy has taken a big slice of the pie for production studios. People are pirating DVD's effectively stealing from actors, production companies, producers etc. This has proved a major set back.
Another reason is the split in the new high definition disc formats. On the one side is Sony with the Blu Ray format, on the other side is Toshiba with the HD DVD format. A clear winner is yet to be announced. The quicker a universal format is agreed on the better.
An important factor affecting DVD sales is the state of the economy in the United States. The country is on the verge of a recession. Gas prices, electricity prices, food prices are sky rocketing while un-employment is on the increase and business investment is slowing considerably. All these factors contribute to a with-drawn consumer. When consumers are faced with the possibility of a recession they won't be spending money on entertainment such as buying DVD's.
The industry has to do something or risk getting lost in oblivion.