The industry’s Digital Entertainment Group credits a 58% gain in spending on Blu-ray discs vs last year’s 3Q and a 12.8% pickup in electronic sell-though (to $135.9M) for much of the gain in 3Q consumer spending, to $3.93B. The 4.9% improvement in total sales was “a major milestone,” DEG says, because “this is the first time spending has increased since the first quarter of 2008, when the economic downturn began.” This also was the first time DEG broke out spending numbers for subscription streaming services such as Netflix, formerly folded into the tally for rentals: They accounted for $255.4M in the quarter and $463.6M for the first half of 2011. But the results show that DVD sales continue to plummet: The huge gains for Blu-ray weren’t sufficient to stop the decline packaged goods sales, down 4% to $1.74B. Over in the rentals, subscription services for discs — again, like Netflix — led the pack (+4.9% to $607.3M). But video-on-demand came in second (+4.9% to $419.9M), followed by kiosks (+23.3% to $414M) and bricks-and-mortar stores (-28.6% to $353M).
By DAVID LIEBERMAN, Financial Editor | Monday October 31, 2011 @ 2:36pm EDTTags: Blu-ray Disc, DEG, Digital Entertainment Market, DVD Rentals, DVD Sales, Netflix
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This article was printed from http://www.deadline.com/2011/10/home-entertainment-spending-gets-4-9-bump-in-3q/