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Economic Recovery?

2 May, 2009 By: Thomas K. Arnold

Now that we've seen first-quarter results in which consumer spending on home entertainment dipped 5% from the first quarter of 2008 (when digital distribution is factored in), the slighter-than-expected decline--and three months of strong box office--are fueling optimism among packaged-media executives. One high-ranking studio source said his latest internal research suggests the year may find total consumer spending, sellthrough and rental combined, decline by just 4% for the whole year, and the interesting point here is his numbers DO NOT include electronic sellthrough, VOD and other forms of digital distribution. That's right, he's only talking about packaged media, DVD and Blu-ray Disc. DVD sales and rentals are expected to be off 10%, this executive told me, but a gathering swell of interest in Blu-ray Disc will make up a huge chunk of those dollars and actually give our industry less of an overall decline than we saw in 2008. Food for thought....


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