Moratorium (entertainment)
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A moratorium in the home entertainment business refers to the practice of suspending the sales of DVD movies or DVD boxed sets after a certain period of time. The Walt Disney Company practices moratorium more than any other production company, often with releases of classic animated movies in the Disney catalog.
Disney is not the only studio that puts movies on moratorium. Universal Pictures used this practice with the release of the Back to the Future DVD boxed set, and George Lucas used this practice with the Star Wars DVD boxed set. However, the moratorium was lifted on Back to the Future for a 20th anniversary edition of the boxed set and on Star Wars, once Star Wars Episode III was released to theaters. Disney itself states that moratorium is done to both control their market and to allow Disney films to be fresh for new generations of young children.
The practice of moratorium is severely frowned upon by consumers because it forces higher sale prices. A normal DVD that is sold under moratorium can sell at retail for a very high price relative to the general run of DVDs. However, prices are known to drop near the end of the issue. In the past, a moratorium created urgency for people interested in a film to obtain it before it became unavailable. A side effect of the moratorium process is the fact that videos and DVDs of films, once they are placed on moratorium, become collector's items. It is not uncommon for online sellers on websites such as ebay and amazon.com to practice a form of price gouging for moratorium films.[citation needed]
