Toy Story 3 flies off shelves, but Disney CEO no more optimistic about future for DVDs

Walt Disney CEO Robert Iger predicts consumers will continue to cut back on buying movies in physical form even as the Disney blockbuster Toy Story 3 flies off store shelves.

A bad economy isn't the only reason DVD sales are down, Iger said in a conference call Nov. 11. Also to blame: "More competition for people's time."

"It’s a title-driven business, no question about it," he said. "I mentioned Toy Story 3. If ever there is a title that would do well, it would be Toy Story 3."

The movie, released Nov. 2, is the nation's top selling and renting DVD. But doing well in 2010 has a different meaning than few years ago, Iger said.

"If you were to look at the numbers for Toy Story 3, which will be extremely strong, versus what films did just three, four, five years ago, you would be sobered by those numbers."

Disney is trying to counter the DVD headwinds in part by offering more value to buyers: A Toy Story 3 multipack consisting of a blu-ray disc, standard DVD and a streamable file have made up about 25 percent of the movie's sales.