The data out today from DEG: The Digital Entertainment Group may suggest that the period of steep declines in home video spending — largely driven by the collapse of the DVD market — is over. But it also may just reflect the fact that the quarter had more popular movies: Films available on home video in the quarter did 12.5% better at the box office than did comparable releases last year. Whatever the reason, total sales of DVD and Blu-ray discs fell just 0.6% in Q1 to $2.06B; DEG says that Blu-ray now accounts for about a quarter of all disc sales. Throw in the $165M spent to buy digital files of movies and TV shows, and the sell-through market was up 0.5%. Digital vendors really showed their muscle in rentals. Spending on subscription streaming services such as Netflix was up 545.4% to $548.6M while digital VOD from providers including Apple’s iTunes was up 6.8% to $505.3M. Meanwhile, the rash of store closings at Blockbuster contributed to a 29.4% decline in rentals at bricks-and-mortar stores to $305M. And Netflix’s struggles with its DVD business helped to drive a 48.1% slide in subscription disc rentals to $348M. Bricks-and-mortar and subscription DVD rental services now individually do less business than pay TV’s VOD which was up 6.8% to $505.3M. Another winner: kiosk services led by Redbox. Their rocketed 30.1% to $523M. DEG says that consumers opened 2M UltraViolet accounts, enabling them to use mobile devices to stream the home videos they buy.
Home Video Spending Up 2.5% In Q1 To $4.45B; Subscription Streaming Soars
What's Hot on Deadline
Bernie Sanders: Obama Administration "Should Kill" The AT&T-Time Warner Deal: "Higher Prices & Fewer Choices"
'The Tonight Show Starring Jimmy Fallon' Showrunner Josh Lieb Departs For Uni TV Overall Deal, Trio Promoted To Run Show
Latest Film News
- Why Does Time Warner Want To Sell To AT&T, And What Will It Mean For Media?
- Margot Robbie Near Deal To Join ‘Peter Rabbit’
- Paramount Picks Up Spec ‘Northeast Kingdom’ For Platinum Dunes; Alex R. Johnson Attached To Direct
- Mel Gibson Scores Hollywood Film Awards Director Honor
- Shannon Purser Joins Joey King In ‘Wish Upon’ For Broad Green Pictures
- Kristin Harris Named VP Acquisitions & Distribution At Good Deed Entertainment