The Digital Entertainment Group's most recent sales report for the first half of 2014 shows that DVD sales continue to slide, and the growth in Blu-ray sales isn't enough to offset these losses.
While the slowdown in revenue is largely linked to dropping unit prices, as opposed to lower number of discs being sold, the 8.2% decline in disc sales for the first half of 2014, compared to the same period in 2013, is still a cause for concern for the home entertainment industry.
While Blu-ray sales remain healthy, with sales up 10% in the second quarter of 2013, slowing DVD sales and lower prices meant total disc revenue was $3.26 billion for the first half of 2014, a drop of $300 million.
Digital, on the other hand, continues to strengthen. Electronic sellthrough sales rose 37% to total $671.4 million, while spending on subscription video-on-demand rose 26% to $1.91 billion.
Total digital spending, which includes Electronic sellthroughs, SVOD and VOD, now account for $3.6 billion, up 16.7%. This means that digital revenue has now surpassed disc spending, at least for the first half of 2014.
For rental, rental revenue at traditional brick-and-mortar stores continues to fall, down 37% to $346.8 million. Kiosk based renting was down only 3.1%, to $925 million.