Sony Pictures to cut 450 workers as DVD sales decline

Sony Pictures Entertainment is laying off 450 people, more than 6.5% of its workforce, as part of a studio-wide belt-tightening blamed on the growth of piracy and changing media consumption patterns, particularly the ongoing downturn in DVD sales.

In a memo to Sony Pictures' roughly 6,800 employees Monday, Chairman Michael Lynton and Co-Chairman Amy Pascal said most of the layoffs would hit the home entertainment and information technology divisions in the U.S.

But all business units would be affected, they said, including motion pictures, television, digital production and corporate operations.

Along with the layoffs, the studio is eliminating about 100 open positions.

This will be the second time in a year that Sony Pictures has cut its workforce. Last March it laid off 250 people and scrapped 100 open positions.

You can see more of the blog at: http://www.latimes.com/business/la-fi-ct-sony2-2010feb02,0,7735430.story

The DVD industry is taking another hit. While people download movies for free on their computer illegally, jobs are in-turn are being lost. Is the beginning of the end near for DVDs already? Discuss.

Youtube Rentals

So Youtube announced on their blog today that they are going into the movie rental business. Five films from the Sundance film festival (2009 and 2010) will be available on the Youtube rental site over this coming weekend.
Their deal seems interesting, especially for fledgling, independent movie makers because they promise complete control over the distribution of their films on the site down to the price and rental duration.
So what do you think? Is Youtube the next big challenger for the movie rental throne? Do they have enough to seriously compete with Netflix or RedBox?
Discuss...