EMA: Blu-ray Sales Increased 10% in 2012

18 Jun, 2013 By: Chris Tribbey

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MARINA DEL REY, Calif. — More retailers are embracing digital delivery as consumers migrate their existing disc collections into the digital world. Yet, they’re also enjoying a rise in Blu-ray Disc spending, according to a report from the Entertainment Merchants Association (EMA).

There was a .25% increase in consumer spending on home entertainment in 2012, the first time in seven years there hasn’t been a decrease, EMA shared at the annual Independent Product Market event.

“This report confirms that our industry is indeed healthy,” said EMA president and CEO Mark Fisher. “There’s a lot of life left in this business.”

Consumers spent almost $18.5 billion on home video in 2012, and they’re expected to spend about the same in 2013, according to Tom Adams, senior principal analyst of U.S. media for IHS Screen Digest. Small decreases in spending are expected annually through 2017, but not much (projected $17.9 billion in spending in 2017).

EMA’s report had Blu-ray sales up nearly 10% in 2012, with the average price paid by consumers declining to $19.97. Spending on digital video game content increased 16%.

Graham Gee, VP and GM of Nielsen, shared data showing DVD unit sales down 7.2% in 2012, but overall Blu-ray unit sales up 22.6%.

“Wider adoption of Blu-ray is having a positive affect on the industry,” he said. “Overall we continue to see stabilization.”

More than 70% of all disc sales came from mass merchants, Gee added, noting that both Walmart and Target saw declining sales.

There were fewer people buying discs in 2012, Gee said, but those who did buy bought more. The top 10% of disc buyers each averaged $572 on content.

Fisher said retailers are adapting, pointing to services such as Walmart’s Vudu and Best Buy’s CinemaNow.

“Retailing is retailing, regardless of the delivery channel,” Fisher said. “Traditional retailers know how to merchandise products, engage the consumer and generate sales. Internet-based retailers have figured how to do the same in the digital environment with new technologies and strategies. Home entertainment retailing today is defined by the confluence of these two vibrant channels.”
 

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