EMA: Disc Still Has Life11 Aug, 2011 By: Chris Tribbey
A day after The NPD Group came out in defense of packaged media, the Entertainment Merchants Association backed the research firm up, providing data showing disc sales on top of every other form of video content.
The EMA’s Aug. 11 report, “D2 Report: Discs & Digital: The Business of Home Entertainment Retailing,” shows consumer spending on DVD and Blu-ray Disc amounts to 42% of all entertainment spending. That compares to 25% at the box office, 27% on pay or premium TV, and 5% on VOD and electronic sellthrough, or EST.
“The home entertainment industry should be encouraged by the strong consumer support for packaged media demonstrating that discs and digital content will coexist in the foreseeable future,” said EMA president and CEO Bo Andersen.
Blu-ray spending was up 53% over 2009, VOD spending increased 21% and EST was up 16%. EMA estimates that DVD and Blu-ray sales and rental accounted for more than 50% of studio revenue, with box office accounting for 26%. Spending on 3D Blu-ray Discs hit $28.4 million in 2010 and should reach $682.2 million by 2014, EMA said.
On the rental side, subscription services like Netflix are expected to account for 50% of consumer spending in 2011, with kiosks like Redbox second at 28%. Brick-and-mortar stores will account for the remaining 22%.
According to the report, American households with a PlayStation 3 use it for disc 27% of the time, and download or stream content 13% of the time. Xbox 360 users spend 40% of their time on the device on non-game play, EMA reported.
“Consumer spending reflects a desire for connectivity and the option to simultaneously access content on multiple devices, which includes owning the physical copy of the product,” Andersen said. “EMA is confident that the leaders of this industry will continue to produce and distribute the kind of products that consumers will welcome in their home.”