Figures released by DEG: The Digital Entertainment Group shows a continued decline in disc sales, but partially offset by growing digital revenue.
Blu-ray disc and DVD sales fell 8% in the third quarter of 2014 compared to the same quarter a year ago, with revenue dropping by $0.4 billion for the year through Sept. 30.
But total revenue for all media for the quarter was only down 1.2%, or $0.5 billion, thanks largely to growing digital sales.
Electronic sellthrough (EST) rose 26.7% for the quarter, while still remaining only a small part of sellthrough revenue (18%, compared to 82% for discs). Subscription video-on-demand (SVOD) revenue, which includes revenue from powerhouse Netflix, also rose by more than 26% in the first 9 month of 2014. Only Transaction video-on-demand (VOD) revenue fell, down 7%.
The disc rentals business continues to falter, with a 32% decline in sales for physical video stores and a 11.5% fall for kiosk based rentals, such as at Redbox machines.
Combined revenue for the quarter was at $3.92 billion (down from $3.97 billion, -1.2%), and at $12.5 billion for the first nine month of 2014 (down from $12.62 billion, -1%).