Video package software sales drop in Japan

Total sales of DVD and Blu-ray discs fall for sixth year

Tokyo — Shipments of DVD and Blu-ray discs in Japan fell 2.7% in 2010 to $3.2 billion, according to figures compiled by the Japan Video Software Assn., the sixth year of decline.

Sales of Blu-ray discs improved 195.7% to $570 million, taking 17.7% of the market. DVD sales, however, slid 12% to $2.65 billion.

In the Blu-ray market the most popular genre was Japanese toons with a 56.9 % share, followed by foreign pics (24.5%) and local pics (6%).

On DVD, the biggest genre was music with a 25.3% share, followed by Japanese toons (21.3%), foreign pics (12.5%) and Japanese TV dramas (8.5%).

Sales from broadband distribution of video content have grown from $222 million in 2004 to an estimated $966 million in 2010, but this increase has not been enough to compensate for the erosion of the video package market. Including broadband, video software sales totaled $4.23 billion compared with $4.76 billion at the 2004 peak.

The same pain is being felt in the publishing and music industries, which have also failed to cover losses in their core businesses with sales gains from Internet distribution.

In 2010 publishing sales shrank 3.1% to $22.65 billion, for a sixth straight year of red ink. Meanwhile the CD market contracted 10% to $2.68 billion, while sales from broadband music distribution fell 5% to $1 billion