When Walt Disney released Tinkerbell direct to DVD last month, the film became an instant hit, with more than 2m copies sold in three weeks to fairy-obsessed children and their families.

The title’s success highlights the dilemma facing Hollywood as the DVD medium comes to the end of its life. Sought-after releases such as Tinkerbell continue to sell well and generate hefty profits but, with most consumers having well-stocked DVD libraries, sales of older titles are in decline.