Home Video Spending Increases A Hair In The First Half Of 2012 Thanks To Netflix

By DAVID LIEBERMAN, Executive Editor | Sunday July 29, 2012 @ 12:31pm PDT

By a hair, I mean a 1.4% gain in total consumer rental and purchase spending to $8.4B, according to data released today by DEG: The Digital Entertainment Group. Netflix and, to a lesser extent, Amazon and Hulu Plus deserve most of the credit for the uptick: Spending on subscription streaming services was up 430.2% to $1.1B, accounting for 13.1% of all home video spending in the period. That outweighed the impact of Netflix’s diminishing promotion of subscription DVD rentals. Spending in this category was -50.4% to $671.9M. Consumers also spent more for streaming subscriptions than they did to rent discs at kiosks, almost exclusively Redbox now that it has bought NCR’s Blockbuster Express machines: The kiosk business was up nearly 23% to $990.5M.  The other notable gain in rentals was in VOD, up 11.6% to $983.6M. Rentals at brick-and-mortar stores fell 33.4% to $597.5M.

Related: Consumers Poised To Pay More For Web-Delivered Video Than For Discs: Report

But the report shows that the industry is still suffering from consumers’ cooling desire to own DVDs. DEG offers a single number for DVD and Blu-ray disc sales — packaged goods collectively were down more than 3.6% to $3.7B. (That’s an improvement from the first half of 2011 when packaged goods sales declined 18.3%.) The industry group makes it clear that DVDs are to blame. It says that consumer spending to own Blu-ray discs was up 13.3% vs a dollar number that DEG doesn’t provide for the first half of 2011. Internet downloads failed to make up for the declining DVD sales, although the electronic sell-through category was up nearly 21.9% to $329.4M. That increase “underscores the expansion of the UltraViolet cloud-based system,” which had more than 4M accounts, DEG says.

Related: Global Filmed Entertainment Spending Will Pick Up Through 2016: Forecast

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DVD Disaster? Study Says Sales Plummeted In 2010, Contrary To Industry Report

The bottom seems to have fallen out of the DVD market according to a startling report out this week from SNL Kagan. The research firm says that studio shipments of DVDs fell 43.8% to 226 million discs last year. Wholesale revenues fell … Read More »

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Studios Take Shine To Ultraviolet

By MIKE FLEMING JR | Wednesday January 5, 2011 @ 7:51pm PST
Mike Fleming

LAS VEGAS, January 6, 2011 – Six of Hollywood’s largest studios including Lionsgate Entertainment, Paramount Pictures, Sony Pictures Entertainment, Twentieth Century Fox, Universal Pictures and Warner Bros. Entertainment Inc. today announced their support for the UltraViolet service and format created by the Digital Entertainment Content Ecosystem (DECE). Complementing

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Weinsteins Buy 25% Stake In Starz Media

Mike Fleming

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