They ain't buyin' CDs anymore either. In an event that hasn't been blamed on Christians, yet, retailers are shipping back "scads" of big hit movie CDs. In fact some studios are seeing their stocks hit hard as word gets out

On June 30, Pixar Animation Studios (PIXR ) cut its earnings-per-share estimate for the second quarter to 10 cents from 15 cents, due to slower-than-expected DVD sales of its blockbuster The Incredibles. The stock of Dreamworks Animation (DWA ) dropped sharply in mid-May, after the studio reported that returns of its own blockbuster Shrek 2 left sales 5 million short of its forecasts.

This an across the board tsunami type event according to reports. Those box office duds are turning into DVD duds. Business Week has the nuts and bolts.

recent DVD releases like MGM's (MGM ) Be Cool and Sony's Hitch have underperformed as DVDs, causing him to contemplate whether the entire industry may be headed for a "seismic change."

Sales are still growing YoY but consider that they were growing 29% two years ago. This year the growth is 2% industry wide.