"My Ex-Girlfriend" stars Vivid Girl Brea Lynn, and will be released in high-definition July 2.
Vivid Co-Chairman Steven Hirsch said the company will remain committed to its DVD and rental market, and that the move to exclusive VOD is an effort to stay ahead of the curve.
As highlighted in a recent USA Today article, DVD sales and rentals have fallen 15 percent in the last year as use of the Internet to upload and download media has skyrocketed.
Sales of adult material online reportedly jumped 14 percent in 2006 — grossing $2.8 billion.
Hirsch said he predicts the Internet to take over DVD sales, revealing that Vivid's DVD sales revenue fell 40 percent in the last three years.
Hirsch said Vivid has been planning to expand its VOD market for a while, having set up a gradual move from releasing titles solely on DVD format to retail stores. Once the company introduced VOD to its consumers, it then began releasing titles simultaneously in stores and on VOD.
However, Hirsch said Vivid will not abandon its DVD market.
"We plan to run our VOD and DVD operations as parallel businesses and will continue to maximize both channels of distribution," he said. "While we plan to release our first title exclusively on VOD, we don't plan to reduce the number of titles that we also sell to brick and mortar retailers. According to our research, there are distinct and separate audiences for our movies via either DVD or VOD and we'll continue to tailor our marketing programs to reach each group."
