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

By | 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 … Read More »

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Home Video Spending Up 4.9% In 3Q

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).

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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 about the same amount, 43.9%, to $4.47 billion. The study compared 415 titles released in 2010 to 352 in 2009. Helped by Avatar, Fox accounted for 13.6% of the 2010 wholesale revenues. That barely beat Warner, which had 13.5% of the market, closely followed by Disney with 13.4%. “Consumers are now opting to sign up for streaming and-or rental services such as Netflix,” analyst Wade Holden wrote. “They are using video-on-demand services more and more as they discover these services can be cost-effective.” His study did not look at sales of Blu-ray discs. It also doesn’t appear to square with the home video industry’s year-end data. DEG: The Digital Entertainment Group said that studios shipped “more than 1 billion DVD units” in 2010 as well as in 2009. DEG pegged total U.S. spending on DVD sales and rentals at $14 billion last year, down 11.4%. But with Blu-ray and digital, total home video spending was down 3.1% to $18.8%, it said.

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Studios Take Shine To Ultraviolet

By | 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 the physical DVD and Blu-ray home entertainment markets, studios will begin offering UltraViolet content this year through digital online retailers and digital rights that come with packaged media, giving consumers the ability to watch digital entertainment across multiple platforms such as connected TVs, PCs, game consoles and smartphones.

Through UltraViolet, consumers now have greater choice and freedom to purchase, manage and watch digital movies, TV shows and other entertainment. The UltraViolet experience is powered by a cloud-based UltraViolet Account, which includes a Digital Rights Locker and account management functionality. Consumers can create an UltraViolet account, free of charge, via one of the many participating UltraViolet service providers or through the UltraViolet website. Once created, this account will allow consumers to easily access and manage all of their UltraViolet entertainment, regardless of where it was purchased.

Consumers will also be able to register up to 12 devices so UltraViolet content can be easily downloaded or shared between them. In addition, UltraViolet streaming access will enable consumers to enjoy their collections via set-top boxes and the Internet including computers, Internet-connected home video devices such as Blu-ray players and Internet TVs, and mobile apps for smartphones and tablets. The UltraViolet Account will also

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Weinsteins Buy 25% Stake In Starz Media

Mike Fleming

Englewood, Colo. and New York, NY (January 4, 2011) – In a significant strategic partnership within the ever-changing home/digital entertainment market, Starz, LLC has agreed to sell The Weinstein Company (TWC) a 25% stake in Starz Media, LLC, a programming production, home entertainment and international TV distribution company which includes Anchor Bay Entertainment and other TV/home entertainment assets. Separately, Anchor Bay has entered into a multi-year domestic distribution agreement for new theatrical content from TWC and its Dimension Films label.

The agreements were announced today by Starz, LLC President and CEO Chris Albrecht and TWC Co-Chairmen Bob and Harvey Weinstein. Financial terms of the strategic partnership were not disclosed.

The home/digital entertainment deal, which does not include television rights but spans Blu-ray™, DVD and EST/VOD/PPV electronic/digital distribution, covers up to 20 TWC and Dimension titles per year including the seven-time Golden Globe-nominated Tom Hooper drama The King’s Speech, starring Colin Firth, Geoffrey Rush and Helena Bonham Carter; Derek Cianfrance’s Blue Valentine, starring Golden Globe nominees Michelle Williams and Ryan Gosling; and John Wells’ feature directorial debut Company Men, starring Ben Affleck, Tommy Lee Jones, Kevin Costner and Chris Cooper. Other titles include the Kristin Scott Thomas drama Sarah’s Key, upcoming sequels in the successful Scream, Spy Kids, and Scary Movie franchises, and new installments in the Hellraiser, Halloween, and Children of the Corn film series.

“The distribution agreement leverages the scale of

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