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

By DAVID LIEBERMAN, Executive Editor | Friday June 1, 2012 @ 10:45am PDT

Spending for DVDs and Blu-ray discs is falling so fast that 2012 likely will be first year when consumers will pay more to buy and rent movies via the Internet, according to a report today from IHS Screen Digest Video Intelligence Service. The research firm says that the average household will spend $123.50 to buy and rent discs this year — down from $133.21 last year and $149.53 in 2010. The average home spent $206.78 in 2006, when Blu-ray discs were introduced. Looked at another way, people spent $8.8B last year to buy packaged videos, down 12% vs 2010. That will keep falling to $5.4B in 2016 — which IHS notes is “the level in 1997 when DVDs were first launched.” Meanwhile, consumers paid $5.7B to rent discs last year, down 7.3%. Much of that drop was due to the cut backs at Blockbuster, as well as the snafus at Netflix’ DVD rental business. With that largely behind us, and rental kiosks becoming more popular, disc rentals will increase slightly to $6B in 2016. IHS says that kiosks accounted for 34% of disc rental spending last year, and will grow to 41% this year, and hit 52% in 2015. The silver lining for studios is that the online business is growing. “If revenue were to be added from other viewing options such as video-on-demand, Internet-based sales and rentals, and subscription streaming from providers like Netflix and Hulu Plus…consumer spending across all outlets of home video would amount to nearly $17.2B,” says IHS senior analyst for U.S. video Michael Arrington. In a separate report, IHS said that spending for online movies more than doubled to $992M last year, mostly due to the growth of Netflix’s streaming service — which passed Apple to be the No. 1 online movie provider. Web spending is expected to double again this year but then slow, the company says, unless a company such as HBO offers a standalone streaming service or someone offers a Web-based replacement for pay TV.

Comments (14)

Pay To Play DVD/Blu-Ray? Windows 8 Sucks

By NIKKI FINKE, Editor in Chief | Sunday May 6, 2012 @ 6:30pm PDT

Tech news reports I saw this weekend drop this bombshell on Hollywood as well as PC consumers: the next-generation Windows 8 operating system won’t automatically play DVDs and Blu-ray – even if your laptop has a DVD or Blu-ray drive. … Read More »

Comments 75

Universal Revs ‘Fast Five’ NASCAR Promo

Universal Studios Home Entertainment will  kicks its Blu-ray and DVD campaign into gear at the “Fast Five 225″ auto race on Sept. 16 at Chicagoland Speedway. The latest installment of The Fast and the Furious franchise will be released on … Read More »

Comments (0)

Relativity Inks Home Entertainment Distribution Deal With Fox

By THE DEADLINE TEAM | Thursday March 10, 2011 @ 10:58am PST

(Beverly Hills & Los Angeles, CA) March 10, 2011 – Relativity Media, LLC announced today it has forged a multi-year distribution deal with Twentieth Century Fox Home Entertainment that will cover the marketing and distribution of Relativity’s films on DVD and Blu-ray. Twentieth Century Fox Home Entertainment will release

Read More »

Comments (1)

‘Social Network’ Tops DVD Charts While Still On Big Screen

By MIKE FLEMING JR | Wednesday January 19, 2011 @ 2:36pm PST
Mike Fleming

The Social Network has accomplished something unusual. It has landed as the #1 DVD and Blu-Ray, on the same week that it is playing this weekend in 380 theaters. The momentum of the re-release and the Golden Globes and Critics’ Choice Movie Awards win for Best Drama pushed the film … Read More »

Comments (10)