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U.K. DVD, Blu-ray Disc Sales Trump Digital

11 Jul, 2017 By: Erik Gruenwedel

Digital movie, TV shows revenue not offsetting SVOD

Sales of digital movies and TV shows in the United Kingdom are not enough to stop burgeoning consumer use of subscription video-on-demand services such as Netflix and Amazon Prime Video, according to new data from Futuresource Consulting.

The London research firm said electronic sellthrough transactions grew 23% in 2016 to £185 million ($238 million) — 17% of the $2.6 billion spent on video.

That said, just 10% of respondents to a Futuresource survey said they purchased a digital movie or TV show in the past six months.

However, 33% said they purchased a DVD or Blu-ray, and 38% were SVOD service subscribers — of which 60% said they continue to buy packaged and digital media.

“We are going to see a lot of overlap in video consumption,” Tristan Veale, media analyst at Futursource, told attendees at the recent New Content Horizons summit in London.

That overlap will continue to undermine digital transactions, accounting for 26% of the market in 2021, compared with 69% for SVOD. 

Despite Netflix’s dominant position in the U.K., Futuresource contends packaged media continues to permeate consumer spending. Citing entertainment retailer HMV, analyst Veale said the chain generated £170 million ($218.6 million) in disc sales in 2016 — the same as Amazon digital video revenue.

“So the packaged-media market is definitely something that you can’t discount,” he said.

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