10 Things Not to Buy in 2010

Ten years ago, most homes relied on dial-up connections to access the Internet and iPods, flat-screen TVs and the Nintendo Wii didn’t exist.

As we prepare to ring in 2010, consumer should expect to see more revolutionary products supplanting old mainstays. In media, DVDs, books, newspapers and magazines will continue to lose ground to services like in-home movie rentals and gadgets like the Amazon (AMZN) Kindle. In big-ticket items, the push for energy efficiency will continue to influence consumer decisions on cars and home upgrades.

As a result, some consumer products appear poised for a dip in sales, which could be a prelude to obsolescence. Here are 10 items not to buy in 2010.

DVDs

The days of going to a video shop to rent a movie are at an end. In September, Blockbuster (BBI) said it plans to close roughly 22% of its stores by the end of 2010; meanwhile, third-quarter revenue was down 21% from the year-ago period. (The company didn’t return calls for comment.)

Looking ahead, DVD purchases could turn cold, as well. On average, DVDs sell for at least $20 each. That’s pricier than signing up for Netflix (NFLX) or renting movies from cable providers’ on-demand channels. Netflix charges as little as $8.99 a month to rent one DVD at a time (with no limit to the number of monthly rentals).

Time Warner Cable offers thousands of movies on demand for around $4.99 each. Verizon Fios cable service charges $5.99 a month to download unlimited movies.

Home telephone service

It will probably take a while, but home landlines could become as archaic as the rotary phone.

According to a Centers for Disease Control and Prevention study, more than one in five U.S. homes (22.7%) had cellphones – and no landlines – during the first half of 2009, up from 10.5% during the same period in 2006.

Ditching your home phone is easier now than it has been in the past, as cell phone companies compete for greater market share and alternatives to the home landline continue growing. For example, magicJack provides phone service when it’s plugged into a computer’s USB port and a home phone. It costs $39.95 and includes a one-year license for calls in the U.S. and Canada; after that, service costs $19.95 per year. (By contrast, Time Warner Cable’s digital home phone service costs $39.95 per month.)

And, consider Skype, which is free when you communicate with other Skype users; this software application uses the Internet as a platform to make calls, hold video conferences and send instant messages.