DEG: Blu-ray, Digital Helped Lift 2011 - High-Def Digest Forums
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Old 01-10-2012, 09:46 AM
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Default DEG: Blu-ray, Digital Helped Lift 2011

http://www.homemediamagazine.com/mar...lped-lift-2011

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Higher-margin products and strong consumer spending on Blu-ray Disc helped stabilize the home entertainment industry in 2011, according to full-year figures released Jan. 9 by DEG: The Digital Entertainment Group.

While overall spending on packaged media and digital delivery was down 2% for the year to an estimated $18.4 billion, a 20% jump in Blu-ray spending and a 50% jump in digital spending point to a sustained recovery for the industry, DEG reported.

The first half of 2011 saw consumer spending on home entertainment up 1%, and the third quarter saw a 5% rise, the first quarterly increase since the first quarter of 2008.

Annual spending on Blu-ray software hit $2 billion for the first time, and Blu-ray players are now in nearly 40 million homes, a 38% rise from 2010. Electronic sellthrough spending was up 9% for the year, while VOD saw a 7% rise. 3D Blu-ray Disc unit sales were up sixfold year-over-year.

Helping drive Blu-ray spending was the further adoption of HDTV, with more than 27 million HDTVs purchased in 2011, bringing household penetration to more than 74.5 million American homes, DEG reported.

Five of the 10 best-selling Blu-ray titles of 2011 (Harry Potter and the Deathly Hallows Part 1, Harry Potter and the Deathly Hallows Part 2, Tangled, Cars 2 and Transformers: Dark of the Moon) sold more than 2 million discs, according to the data.

Looking at 2012, DEG says UltraViolet the buy-once, play-anywhere, cloud-based digital copy platform will help keep disc sellthrough relevant, with an estimated 100-plus UltraViolet-enabled titles released during the year.
My take. Not a good year for home video in general between Blu-Ray, DVD, and Digital. There is nothing here to really gush about. 2% drop in spending is not that bad when you consider the box office was a mess. Per Boxofficemojo, domestic spending at the box office fell 3.8% YoY.

Too be honest, home video did a little better than I expected, I was expecting revenue to be down more than double what it was.

Hopefully 2012 will see a stronger box office and the home video market actually up YoY, but I have my doubts.
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Old 01-10-2012, 09:50 AM
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BTW, looks like the DEG is spinning the digital sales number
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"50% jump in digital spending"
.. Umm. Yeah if you include streaming in that number (which is rentals, not sales). The real increase was
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"Electronic sellthrough spending was up 9% for the year, while VOD saw a 7% rise".
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Old 01-10-2012, 09:53 AM
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Originally Posted by ack_bak View Post
BTW, looks like the DEG is spinning the digital sales number .. Umm. Yeah if you include streaming in that number (which is rentals, not sales). The real increase was
I thought they only put spin on disc sales?

Hmm....
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Old 01-10-2012, 09:54 AM
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I thought all of those tablet sales would make a bigger difference.

I mean - more devices should mean more sales.

I don't think 9% and 7% is much to write home about when tens of millions of tablets were sold in 2011.
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Old 01-10-2012, 10:01 AM
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I thought all of those tablet sales would make a bigger difference.

I mean - more devices should mean more sales.

I don't think 9% and 7% is much to write home about when tens of millions of tablets were sold in 2011.
I think this just proves that consumers won't buy movies when there are so many cheap rental options. No matter how many tablets or AppleTV's or whatever digital platform sells, you have to have the content to drive sales.

And I also think it is clear that packaged media (even with DVD dropping) is going to be around a long time. Digital is just not going to replace optical media anytime soon. I think the last few years make this very evident.
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Old 01-10-2012, 10:22 AM
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Originally Posted by ack_bak View Post
BTW, looks like the DEG is spinning the digital sales number .. Umm. Yeah if you include streaming in that number (which is rentals, not sales). The real increase was
The overall $18.4 billion (and 2% drop) includes disc rentals too. If you look at the 2010 DEG report, they provide an aggregate "digital" number which includes rentals/sales.

http://www.degonline.org/pressreleases/2011/f_Q410.pdf
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Old 01-10-2012, 10:26 AM
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The overall $18.4 billion (and 2% drop) includes disc rentals too.
Yes, looks like it was overall home video revenue across sales, rentals, etc.
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Old 01-10-2012, 10:33 AM
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The 2010 DEG report said: "Blu-ray continued its remarkable growth, with software sales of $1.8 billion."

If in 2011 Blu Ray sales "hit $2 billion for the first time", that's only 11% sales growth?

Could the 20% increase for "Blu-ray Spending" include rentals?
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Old 01-10-2012, 10:37 AM
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Originally Posted by hdmoviefan101 View Post
The 2010 DEG report said: "Blu-ray continued its remarkable growth, with software sales of $1.8 billion."

If in 2011 Blu Ray sales "hit $2 billion for the first time", that's only 11% sales growth?

Could the 20% increase for "Blu-ray Spending" include rentals?
"spending" usually implies both sales and rentals. as in overall spending

"sales" usually includes only actual sales, not rentals.

But who knows - these people like to spin words.
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Old 01-10-2012, 11:13 AM
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Consumers aren't clamouring for digital. Maybe digital can replace OD for renting (and its better suited for that) but it's not priced to do so, save for streaming.

The market decline was only 2% though compared to 3+ the year before.

~35% of households have blu-ray.
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