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Report: Digital Movie Revenue Declining

20 Apr, 2010 By: Erik Gruenwedel

Online transactional movie rentals and video-on-demand (VOD) purchases have apparently slowed, prompting research firm Screen Digest to revised downward future revenue growth for the perceived successor to DVD.

London-based Screen Digest found that revenue from movie downloads in the United States in 2009 reached $200 million, 20% below a previous conservative projection of $250 million.

The report also found that digital movie rentals fared relatively better, generating $92 million in revenue — nearly 18% below $111 million in projected revenue.

“Consequently, we have reduced our U.S. forecasts to just below $950 million from [electronic sellthrough] and VOD combined by 2014,” said analyst Arash Amel.

By contrast, DEG: The Digital Entertainment Group found that digital movie revenue, including downloads and online rentals, reached $617 million in the first quarter this year, up 27% from the same period last year.

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