Home Entertainment Spending Was Flat In Q3 At $3.97B: DEG

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. Read More »

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‘Hunger Games’ Sells 3.8M DVD And Blu-rays Its First Domestic Weekend

By | Tuesday August 21, 2012 @ 10:24am PDT

Lionsgate announced today that the home entertainment release of the first installment of its blockbuster franchise The Hunger Games was also the largest digital and on demand launch in the Company’s history, generating the biggest first day … Read More »

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Home Video Spending Up 2.5% In Q1 To $4.45B; Subscription Streaming Soars

By | Sunday April 29, 2012 @ 11:41am PDT

The data out today from DEG: The Digital Entertainment Group may suggest that the period of steep declines in home video spending — largely driven by the collapse of the DVD market — is over. But it also … Read More »

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Declining Video Sales Contribute To Lousy 3Q Results At Best Buy

By | Tuesday December 13, 2011 @ 7:08am PST

Best Buy 3Q EarningsConsidering how much of the revenue in Hollywood comes from retail sales and consumer electronics, there’s sure to be some teeth gnashing over the earnings figures out this morning from Best Buy for the quarter that ended in November. Shares in the No. 1 electronics chain are down more than 11% in early trading after it reported net profits of $154M, down 29% from the same period last year, on revenues of $12.1B, up 1.8%. Factoring out a one-time restructuring charge and a gain on an investment sale, earnings came in at 47 cents a share –  below the 51 cents that analysts expected. Best Buy attributes much of the profit drop to declining purchases of digital cameras and game consoles, as well as promotions — including those on Black Friday — to drive sales of tablet computers, TV sets and movies. Still, entertainment sales including music and DVDs fell 9% at domestic stores open 14 months or more. They now account for 13% of Best Buy’s U.S. revenue. Consumer electronics, which represent 35% of Best Buy’s domestic sales, were down 4.8%. The chain had better luck with computers and mobile phones, which represent 40% of sales and were up 8.8%. 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 … Read More »

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Report: Blu-ray Sales Falling Short Of Expectations Even As Prices Decline

By | Wednesday June 8, 2011 @ 6:26am PDT

A research report this morning from The NPD Group confirms the prevailing narrative that the home video business is in trouble — although you might miss that if you just look at the upbeat headline on its release: “Consumers … Read More »

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FT: Google Chases Pay-Per-View Dollars

By | Monday August 30, 2010 @ 8:28am PDT
Mike Fleming

The Financial Times is reporting that Google’s YouTube site is negotiating with the Hollywood studios to participate in a pay-per-view site that will be online by year’s end. That puts it in competition with Apple, Hulu and Netflix in trying … Read More »

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