Turnaround Projected for British Disc Sales16 Jul, 2015 By: Erik Gruenwedel
Sales of new-release movies on Blu-ray Disc and DVD are expected to increase 2% through the end of year, following a 8% decline in 2014, according to new data from the British Video Association. The packaged-media market in the United Kingdom is considered third-largest in the world, according to IHS.
While 50% of consumers in the U.K. are aware of digital entertainment, including electronic sellthrough, transactional VOD and subscription streaming, there is a 10% uptick in consumer interest regarding purchasing new-release movies on disc.
The data was presented July 16 by the BVA at an industry event in London supported in part by DEG: The Digital Entertainment Group Europe.
“The value of video sales today equates to £4 million [$6.2 million] on physical and £2 million [$3.1 million] on digital each day, illustrating that although physical ownership is still dominant, digital is an important driver of growth. This represents a fantastic opportunity to capitalize on shopper demand and work hand-in-hand with retailers to maximize the opportunity across all outlets and platforms to showcase new releases and draft catalog across all formats,” Robert Price, managing director of 20th Century Fox Home Entertainment and chair of the BVA, told attendees.
In a statement, Liz Bales, CEO of the BVA, said that through the end of June, the projected turnaround in packaged-media retail is on track with volume sales flat with 2014.
“In other words, from -15% to 0% and with a very strong second half of the year to come, the final outcome for new-release film in 2015 looks positive,” Bales said.
In addition, catalog sales have improved, rebounding from a 23% decline in revenue through the first half of 2014, to a 12% decline through June.
Supplementary data from the BVA reportedly suggests 50% of the British population (24 million) buys a home video title, with individual annual purchases reaching nearly $80. About 57% of disc sales are impulse purchases, with another 55% of disc buys catalog.
On an average day, consumers collectively spend $5.4 million on discs; $468,000 on disc rentals; $624,000 on electronic sellthrough; and $2.3 million on transactional VOD.