You can thank Netflix for helping the home entertainment industry to report the coulda-been-worse numbers for video sales and rentals in Q3. Total consumer spending, at $3.97B, was up 0.05% vs the period last year — even though, The Digital Entertainment Group notes, theatrical revenues for the releases were down 6.4% from last year. Still, the numbers show a $13.5M shift from high-margin sales to low-margin rentals: Total sales (including discs and electronic sellthrough) fell 7.4% to $1.72B while rentals (again, physical and electronic) were up 16.5% to $1.06B. Optimists will find comfort in the digital data. Spending on subscription streaming was +33.1% to $815.2M. That’s probably almost all Netflix; DEG doesn’t include subscription VOD that’s “bundled with other services,” which would knock out Amazon Prime. Studios also should be encouraged by the growth of electronic sellthrough: +46.4% to $273.9M. That’s an acceleration from the quarter last year (+37.7%) and in 2011 (+12.8%). VOD spending at $468M was up 2.8%, a slow down from last year when it was +8.5%. Results continue to look dismal for discs, though.
Effective this month, Hollywood studios will package digital film and television content under the standard “Digital” or “Digital HD” brand, trade org Digital Entertainment Group announced today. The distinction applies to non-physical filmed media with the “Digital” or “Digital HD” branding to appear on DVD and Blu-ray packaging, digital downloads, advertising, social media and publicity campaigns, and merchandising as well as in the UltraViolet brand for participating studios. “Digital HD (or Digital) is a dynamic and direct approach aimed at consumers who want movies and television shows that they can access on their favorite devices,” said DEG President Amy Jo Smith in a statement. “Whether they access the DIGITAL HD version as part of a Blu-ray purchase or as transaction through a digital store, we believe this terminology will help them understand they are getting an exciting, versatile product that heightens their home entertainment experience.” Anchor Bay Entertainment, HBO Home Entertainment, Lionsgate, Paramount Home Media Distribution, Sony Pictures Home Entertainment, Twentieth Century Fox Home Entertainment, Universal Studios Home Entertainment, Walt Disney Studios and Warner Bros. Home Entertainment have agreed to participate in the initiative.
The LA-based Digital Entertainment Group marked its 17th year as the home entertainment industry’s leading association by promoting Amy Jo Smith to President. In addition to promoting Smith, the DEG realigned its Steering Committee positions for the 2013-14 fiscal year. Vice Chairs will be David Bishop, President, Sony Pictures Worldwide Home Entertainment, Craig Kornblau, President, Universal Studios Home Entertainment and Mike Dunn, President, Twentieth Century Fox Home Entertainment. Steve Beeks, Co-Chief Operating Officer & President, Motion Picture Group, Lionsgate remains Chief Financial Officer. Robert Rose, DEG’s General Counsel, also takes over the responsibility of Corporate Secretary.