The continuing decline in DVD sales, and disc rentals at bricks-and-mortar stores and subscription services led by Netflix, continued to weigh the business down according to data out today from DEG: The Digital Entertainment Group. It reports that consumers spent $5.66B in Q4, a 1.5% drop vs the period last year. That resulted in a full-year total of $18B, up 0.23%. The total sell-through figure for packaged goods — largely discs — fell 8.4% to $3.1B in Q4. That’s due to DVDs: While the trade group doesn’t break out data for Blu-ray discs (it once did), it says that spending on the high-definition format was up 10% for the year. DEG doesn’t break out sales of UltraViolet-enabled discs but says that the initiative has “achieved significant milestones in industry and consumer adoption and is rapidly becoming an integral part of the home entertainment landscape.” Spending on digital downloads is up — 50% to $295M — but not enough to compensate for the decline in DVDs.
On the rental side, total spending for discs fell nearly 9% to $1.1B in Q4. Bricks and mortar stores including Blockbuster were down 5.1% to $332.8M while disc subscription was -30.8% to $284.8M. That more than outweighed the gain at kiosks (+7.8% to $492.4M). The tally brightens when you include rentals from subscription streaming services (+29.3% to $654.7M), and VOD (+11.4% to $538.3M).