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Disc Sales Continue to Drive German Video Market

16 Feb, 2015 By: Erik Gruenwedel

Warner’s ‘The Hobbit: The Desolation of Smaug’ top-selling packaged-media release as consumer spending dipped 5% in 2014

Despite the distraction of World Cup soccer (won by Germany) and the arrival of Netflix, the German home entertainment market saw total consumer spending fall just 5% to €1.64 billion ($1.87 billion) in 2014 from record revenue of €1.72 billion ($1.96 billion) in 2013, according to the Bundesverband Audiovisuelle Medien (BVV), the German home entertainment association.

Sales of DVDs dropped 9% to €899 million ($1 billion) from €984 million ($1.1 billion), while Blu-ray Disc revenue slipped 1% to €405 million ($462 million) from €410 million ($467 million).

Digital sales spiked 29% to €67 million ($76 million) from €52 million ($59 million) in 2013. That said, digital sales represented just 4.4 cents of every dollar spent on home entertainment purchases in Germany.

Top-selling packaged-media release was Warner Home Video’s The Hobbit: The Desolation of Smaug, followed by Walt Disney Studios Home Entertainment’s Frozen.

“Packaged media continues to dominate video sales,” the BVV wrote.

DVD rentals declined 16% to €132 million ($150 million) from €158 million ($180 million), while Blu-ray rentals increased 9% to €56 million ($63.8 million) from €53 million ($60 million) in 2103. Indeed, 11% of the total disc rentals (€30 million/$34.2 million) occurred by-mail.

Meanwhile, transactional VOD represented 31% of total rental revenue with €83 million ($94.7 million) compared to €68 million ($77.5 million in 2013.

Rental revenue did not include subscription streaming such as Amazon Prime Instant Video or Netflix — the latter launching service in Germany in September.

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