×
You will be redirected back to your article in seconds

Home Entertainment Customers Back in Buying Mode

Blu-ray Disc sales up 35% in quarter; digital download spending rises nearly 9%

Is the buying bug once again biting consumers of home entertainment?

Consumers spent 4% more on buying movies and other content on disc as well as digitally in the second quarter of this year than they did in the second quarter of 2015, according to numbers released today by DEG: The Digital Entertainment Group.

Disc sales, which for years have been declining virtually every quarter, rose 3% to $1.2 billion, buoyed by a 35% increase in Blu-ray Disc sales.

Electronic sellthrough, also known as “Digital HD,” rose 8.7% to $466 million in the quarter, up from $429 million in the comparable period a year ago.

Total consumer spending on home entertainment purchases is estimated at $1.67 billion for the three-month period that ended June 30, a healthy increase of 4.5% from $1.59 billion in the same period last year.

Ron Sanders, president of Warner Bros. Worldwide Home Entertainment Distribution, notes that the box office value of movies that came to the home market during the quarter was up 18% from the previous year’s quarter.

Observers say the launch in March of Ultra HD Blu-ray also may have been a factor. Ultra HD Blu-ray Disc is the next-generation disc format with four times the pixel density of HD Blu-ray as well as High Dynamic Range (HDR), with greater contrast and deeper, more life-like colors. The format got off to a successful start in the first quarter of this year, with the first volley of Ultra HD Blu-ray discs hitting stores in March and selling far better than expected, according to studio executives.

The format’s launch was even more successful than regular Blu-ray Disc back in 2006.

According to DEG, 1.4 million 4K Ultra HD TVs were sold in the U.S. market in the second quarter of this year, up 119% from the second quarter of 2015 and bringing the total number of sets purchased to more than eight million.

More than 45 Ultra HD Blu-ray title releases were available in the first half of the year, with impressive sales of about 288,000 units.

Total home entertainment spending rose 6% in the second quarter, to an estimated $4.33 billion, up from $4.08 billion in the April-to-June period in 2015.

Subscription streaming, led by Netflix, continued its explosive growth, with estimated consumer spending jumping 20.6% to $1.5 billion, up from $1.25 billion in the year-ago quarter. Traditional video rental, at brick-and-mortar stores, fell by a similar percentage, coming in at just $122.9 billion, a 21% decline.

Kiosk rental revenue, reflecting the recent woes of market leader Redbox, was pegged by DEG to be down 13% for the quarter, to an estimated $380 million.

Video-on-demand, the other digital component (in addition to streaming and Digital HD), posted a 7.2% gain in consumer spending, to $518 million.

For the first six months of the year, consumer spending on home entertainment is up nearly 2%, according to DEG estimates, at $8.89 billion, compared to $8.7 billion in the first six months of 2015.

More Digital

  • Nancy Pelosi

    Facebook on Defensive Over Fake Pelosi Video

    Facebook faced growing criticism this week over its decision not to remove a video that was doctored to suggest that House Speaker Nancy Pelosi was intoxicated during a recent public event. The video, which has been viewed more than 2.5 million times, had been slowed down notably, giving the impression that Pelosi was slurring her [...]

  • Little-Black-Mirror-Maia-Mitchell

    Netflix Launching 'Little Black Mirror' Video Series Starring Maia Mitchell, Lele Pons, Rudy Mancuso, Juanpa Zurita and More

    To promote next month’s premiere of “Black Mirror” season 5, Netflix is launching a short video series — “Little Black Mirror,” with a cast that includes an ensemble of Latinx social-media stars. The three “mini-stories,” aimed at Spanish-speaking audiences, are inspired by the tech-dystopian universe of Charlie Brooker and Annabel Jones’ anthology series. “Little Black [...]

  • Twitter

    Twitter Permanently Bans Anti-Trump Krassenstein Brothers, Who Deny They Broke Platform's Rules

    Twitter permanently suspended the accounts of Ed and Brian Krassenstein — progressive political activists famous for trolling Donald Trump and his supporters — with the company alleging the brothers used bogus accounts to amplify their reach on the platform. “The Twitter Rules apply to everyone,” a Twitter rep said in a statement. “Operating multiple fake [...]

  • Snapchat

    Snap in Talks to License Music to Let Snapchat Users Embed Songs in Posts

    Snap wants to up Snapchat’s music game. The company has been in negotiations with music companies including the big three — Sony Music Entertainment, Universal Music Group and Warner Music Group — to license song catalogs for the Snapchat app, according to two industry sources familiar with the talks, confirming a Wall Street Journal report. [...]

  • T-mobile - Netflix - John Legere

    T-Mobile Passes Netflix Price Hike Through to Subscribers

    T-Mobile is getting ready to raise prices for subscribers who have taken advantage of its “Netflix On Us” promotion: The mobile carrier will begin charging existing customers who have participated in the promotion an additional $2 per month to account for Netflix’s recent price increase. Consumers will see their bill go up starting on 6/2. [...]

  • Oona King

    Snap Hires Google Exec Oona King as First VP of Diversity and Inclusion

    Snap continues to fill out the ranks of its revamped leadership team: The Snapchat parent tapped Oona King, most recently Google’s director of diversity strategy and a former member of British Parliament with the Labour Party, as its first VP of diversity and inclusion. King, who starts at Snap on June 11, is also the [...]

More From Our Brands

Access exclusive content