Home Video Sales up 4.9% in 3q ending 3 year slide. - High-Def Digest Forums
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Old 10-31-2011, 01:02 PM
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Default Home Video Sales up 4.9% in 3q ending 3 year slide.

http://mobile.bloomberg.com/news/201...tml?cmpid=yhoo

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U.S. consumers spent $3.93 billion on home-entertainment videos in the third quarter, a 4.9 percent gain from a year ago and the first increase since early 2008, a trade group said.
Sales of Blu-ray discs, online purchases and rentals from kiosks and Internet services countered tumbling DVD revenue and shrinking rentals from stores, the Digital Entertainment Group, a trade association affiliated with Hollywood studios, said today in a statement.
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Old 10-31-2011, 01:17 PM
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The quote above erroneously assumes that the 4.9% increase in just in home video sales, but in fact it includes consumer spending (sales + rentals + digital) on all home video entertainment in Q3. $3.93 billion is reflective of that, as it would be way high for just optical video sales. OD spending should be down slightly by about 5% from last year, if HMM totals are correct. In any case, we'll know soon enough.
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Old 10-31-2011, 01:25 PM
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Originally Posted by bruceames View Post
The quote above erroneously assumes that the 4.9% increase in just in home video sales, but in fact it includes consumer spending (sales + rentals + digital) on all home video entertainment in Q3. $3.93 billion is reflective of that, as it would be way high for just optical video sales. OD spending should be down slightly by about 5% from last year, if HMM totals are correct. In any case, we'll know soon enough.
The quote does mention online purchases, rentals and Internet services as well doesn't it? This is good news for the industry at least that's the way the media is reporting these numbers.
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Old 10-31-2011, 01:45 PM
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Thanks for the article Tower. And thanks for keeping things in perspective Bruce. It's sad that it is taking all these formats to stop the decline. Hopefully them as a collective force can restore the overall market to where it once was. Maybe we will get more quality titles out of Hollywood at that time. Until then we may have to get a bigscreen version of Shazam! Once the top characters are used up.
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Old 10-31-2011, 02:23 PM
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Quote:
For Home Entertainment Releases, a Rare Bright Spot

By MICHAEL CIEPLY
Published: October 30, 2011


On Monday, the Digital Entertainment Group, which monitors consumer spending for home entertainment in the United States, is expected to report a 5 percent increase in industrywide revenue for the third quarter, to roughly $3.9 billion from about $3.7 billion a year earlier. It is the first quarterly uptick since the beginning of 2008.

In part, the increase reflects a surge in Blu-ray sales, which are expected to reach $1.23 billion for the first three quarters, up from about $1 billion for the same period a year earlier. That puts them on a par with video store rentals, which have been falling, and on-demand revenue, which has grown more slowly.

The overall gain is modest, but welcome in a business in which piracy, economic weakness and digital competition have steadily eroded what was once Hollywood’s core source of income — the rental and sale of DVDs.

“It’s extremely encouraging,” said Ronald J. Sanders, the president of Warner Home Video. “I would say things have stabilized.”

The numbers reflect an effort to nudge the consumer away from cheap rentals toward high-yield transactions like Blu-ray sales —and may also signal a boost from a slowly improving economy. “I get a guarded sense of optimism from just about every retailer I speak to,” said David Bishop, the Sony Pictures Home Entertainment president.

By last year, spending on movies and television programs via discs, video-on-demand and other forms of delivery had fallen to $18.8 billion, down 13.8 percent from its 2004 peak of $21.8 billion. Adjusted for inflation, the drop was almost 26 percent.

Box-office ticket sales in America rose about 12 percent in the same period, to $10.6 billion from $9.45 billion. But half of that is kept by theater owners, and it was not enough to lift the gloom on the home viewing side.

But the third quarter this year was helped by the home release of strong titles like “Transformers: Dark of the Moon,” “Thor,” and “X-Men: First Class.” And comparisons were easier than in the first half, when new pictures were measured against the colossal video sales for “Avatar,” which was released to home markets in April 2010.

Though “Avatar” skewed the basis for comparisons, it also laid the groundwork for the current spurt, because it drew consumers toward the Blu-ray format, with Blu-ray sales of the movie reaching 11 million units globally. “It took Blu-ray to another level,” said Mike Dunn, Fox’s home entertainment president.

The number of homes with Blu-ray players rose 52 percent from a year ago, to 33.5 million in the United States. That rise helped sales for “Star Wars: The Complete Saga,” another strong entry in the last quarter.

Blu-ray is important to Hollywood, because each sale yields far more revenue than does a low-cost rental from a kiosk or from Netflix. In a sign that consumers are migrating upstream, the sale of Blu-ray discs is expected to top $423 million for the third quarter, surpassing the total revenue from kiosk rentals, at about $414 million. A year ago, that situation was reversed, with kiosks hauling in substantially more than Blu-ray.

Subscription rentals of physical discs — the Netflix mailer model — rose about 5 percent in the quarter, according to preliminary numbers, to about $607 million from $579 million a year earlier. Meanwhile, an increase in subscription streaming — again, the Netflix model — as well as electronic sales via iTunes and other sources, and video-on-demand, pushed overall digital delivery up more than 50 percent, to roughly $812 million.

That more than offset a 15 percent decline in regular DVD sales, to about $1.3 billion from $1.55 billion.

A pocket of strength, noted Mr. Sanders of Warner, was video-on-demand, which took in $420 million for the quarter, jumping ahead of video stores.

Studios have been timing the availability of films to nudge viewers toward favored formats. Warner, for instance, has been withholding pictures from kiosk rentals and Netflix until 28 days after they are available in video stores, and recently tried to keep films like “Horrible Bosses” and “The Green Lantern” from being available as rentals even in video stores until they had been on sale for a month. (Blockbuster bypassed Warner and buying rental stock on the open market).

In another attempt to nudge consumers toward sales instead of rentals, some studios offer “UltraViolet,” a technology that lets purchasers keep a film in a digital locker, for use on many devices. The hope is that consumers will build collections.

For the year so far, overall spending on home entertainment is still down about 2 percent, from $12.5 billion to about $12.3 billion for the first three quarters.

Mr. Sanders said he doubted the recent upturn would be enough to deliver what the industry hasn’t had since 2004 — a year of growth. “I think we’re going to be pretty close to where we are right now,” he said.

But Mr. Dunn is not so sure. With Warner’s “Harry Potter and the Deathly Hallows: Part 2” and Fox’s “Rise of the Planet of the Apes” on the way, he is optimistic.

“A week in December is worth a month,” he said.
http://www.nytimes.com/2011/10/31/bu...spot.html?_r=1

Last edited by Wolvie; 10-31-2011 at 02:47 PM.
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Old 10-31-2011, 02:35 PM
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Funny how this article highlights the Blu-ray format as a bright spot, yet fails to address Warner's plan to pull back the OD of the last HP film only 1 month after release.
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Old 10-31-2011, 02:39 PM
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DEG Third Quarter Home Entertainment Report

Quote:
October 31, 2011

Attached is the DEG’s Third Quarter 2011 Home Entertainment Report compiled by DEG members, tracking sources and retail input.

Third quarter home entertainment spending rises 5%
Increase is first since 2008’s first quarter when recession was taking hold; Number of Blu-ray homes jumps 52% from year-earlier to 33.5 million


The third quarter 2011 results mark the continued stabilization of the industry, underscored by significant gains in Blu-ray Disc and solid increases in electronic sell-through (EST) spending. This growth reflects an encouraging shift in the marketplace as we head into the all-important fourth quarter.

Overall consumer spending jumped nearly five percent compared to the third quarter a year earlier, marking a major milestone, as this is the first time spending has increased since the first quarter of 2008 when the economic downturn began.

There were a number of promising trends in the third quarter, signifying an ongoing, healthy consumer appetite for home entertainment products. Among the bright spots:

• Blu-ray Disc and EST continued their steady gains with consumer spending on Blu-ray sell-through up an impressive 58 percent and EST up nearly 13 percent compared to the same period last year.

• For major box-office hits, sales of packaged goods often surpass 50 percent on Blu-ray in their first week of release.

• Catalog Blu-ray sales are also on the rise, with year-to-date increases of more than 60 percent, led by the stellar sales of popular classics such as Star Wars, Citizen Kane, Scarface and The Big Lebowski, among others.

• Among the various services and platforms for delivering filmed entertainment to consumers, Blu-ray, EST, and streaming all saw growth in third quarter 2011. These also represent some of the industry’s highest growth margin areas.

• The number of Blu-ray homes continues to climb, soaring 52 percent in the third quarter from a year earlier (including BD set-tops, PS3s and HTiBs.) Total household penetration of all Blu-ray compatible devices now stands at more than 33.5 million U.S. homes.

• Further, 5.5 million HDTVs were sold to U.S. consumers in the third quarter 2011. HDTV penetration to date is now at more than 69.5 million U.S. households.

• The industry is confident the holiday season will be strong. Theatrical blockbusters coming to home entertainment in the fourth quarter include Captain America: The First Avenger, Cars 2, Cowboys & Aliens, Hangover 2, Harry Potter and the Deathly Hallows: Part 2, The Help, Kung Fu Panda 2, Rise of the Planet of the Apes, The Smurfs, and Water for Elephants.

If you would like to discuss the DEG’s Third Quarter 2011 Home Entertainment Report, please contact the DEG.

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Old 10-31-2011, 02:41 PM
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Well that is better than I expected. Glad to see classics doing better, and I hope that continues to translate to more titles getting released. Not bad.
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Old 10-31-2011, 02:44 PM
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It's very misleading to paint a %55 increase for total digital, since subscription streaming wasn't included before. It's more in line with 5-10%. It's also sobering to see how little revenue VOD brings in the big picture, given that it includes hotels, UFC, and other PPV stuff that you can't get anywhere else...
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Old 10-31-2011, 02:50 PM
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Quote:
Originally Posted by bruceames View Post
OD spending should be down slightly by about 5% from last year, if HMM totals are correct. In any case, we'll know soon enough.
Down 4%. Very close.
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