DEG Third Quarter 2016 Home Entertainment Report (1 Viewer)

[Ronald Epstein]

November 3, 2016​

DEG: The Digital Entertainment Group today released its Third Quarter 2016 Home Entertainment Report compiled by DEG members, tracking sources and retail input.*



Home Entertainment Spending Up Nearly Four Percent in the Third Quarter



Growth Driven by Strong Digital HD Sales and Consumer Adoption of 4K Ultra HD Technology



Spending on Blu-ray Disc Jumps Nearly Six Percent



Consumer spending on home entertainment products rose 3.8 percent in the third quarter from previous year. To date, sales are up 2.5 percent in the first three quarters of 2016. Consumers continued to show their interest in Blu-ray Disc movies and TV shows with spending up nearly six percent for the quarter and about eight percent for the year. Consumers also continued to embrace next generation 4K Ultra HD products with robust sales for 4K Ultra HD TVs, Ultra HD Blu-ray players and 4K Ultra HD Blu-ray Discs.



Highlights for third quarter 2016:

· Total U.S. home entertainment spending was nearly $4.2 billion for the third quarter, bringing the year-to-date total to more than $13 billion.



· Consumers continued to transition their collection of filmed entertainment to digital with Digital HD – or Electronic Sell Through (EST) – up nearly 10 percent over the same period last year.



· Blu-ray Disc continues its positive trend, up eight percent for the year.



· Video-On-Demand (VOD) platforms continued to grow, up about five percent in the quarter from a year earlier driven by strong growth of iVOD.



· An additional two million 4K Ultra HD TVs were sold in the U.S. market, up 104 percent from the third quarter of 2015 and bringing the total number of sets purchased to 9.9 million. Seventy two 4K Ultra HD Blu-ray title releases are now available.



· HDTV penetration is approaching the total number of U.S. households. The DEG estimates that 85 percent – 104.5 million - of all U.S. homes have at least one HDTV. Blu-ray playback devices (including set-tops and game consoles) are in nearly 87 million U.S. households.**

 

[Dick]

I don't care what accounts for this as much as I am simply happy it is happening, after years of sales decline. Anything that encourages continued catalog and 3D releases is welcome.

 

[Cranston37+]

Looking further into the DEG numbers...

Physical discs have sold $3.6 billion worth of product so far in 2016. If you carry that out through the rest of the year, you can expect around $4.8 billion worth of discs to sell in 2016.

To put that into perspective, the NBA generated $4.7 billion in revenue in 2015 and Premiere League $4.0 billion.

I'd say if buying discs are your thing, it is still a very substantial business so sit back, relax, and enjoy a hobby whose death has been greatly exaggerated for about a decade now...

http://degonline.org/wp-content/upl....0_11.01.16_-External_-Distribution_Final.pdf

 

[ahollis]

Very encouraging news.

 

[Alf S]

I wonder if disc sales are fairly healthy partially due to the fact that we are now in the phase of studios dumping off a lot of titles for mere pennies on the dollar vs. when the discs were first released? Meaning now you can got to Walmart, BB, Target etc and find a lot of mainstream older/semi-older titles sitting in giant buckets being sold for $5...$7...$10 each so folks are grabbing up some of their beloved titles.

Versus a few short years ago, any movie you liked that was on Blu was teetering on $30+ each so most folks walked past the Blu aisle.