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Blu-ray and Digital Rise To Offset DVD's Decline

Posted by: , 18:02 AEST, Sun August 11, 2013

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Blu-ray and digital revenue, including subscription streaming, helping to offset big declines in DVD sales, as the rental market declines further
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Blu-ray sales rose 15% for the first half of 2013, compared to a year ago, according to new data released by DEG: The Digital Entertainment Group.

This is despite a decline of 4.7% in packaged media sales for the same period, with the second quarter of 2013 recording 13% less packaged media sales than the same quarter a year ago. Most of the decline is attributed to the slowing of DVD sales.

This latest data confirms the steady rise of Blu-ray sales. Just a few months ago, DEG released data showing Blu-ray sales had risen 10% in 2012, despite lower average prices.

Along with rising Blu-ray revenue, digital revenue is helping to mostly offset these losses. Digital revenue grew by 24%, with electronic sellthroughs up by more than 50%, DEG reported. DEG credits the rise in electronic sellthroughs to improved convenient access to digital collections and further penetration of digital content through traditional retail channels. Subscription based streaming performed particularly well, up 32.13%.

As a result, overall sellthrough revenue remained relatively flat for the first half of 2013, dropping only 0.2% compared to a year ago.

Rental revenue, including both physical and digital, was down 5.5%. Most of this was due to a 21% decline in subscription based disc rentals. Kiosk rental revenue was down 4%.


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