DEG Reports Q1 2017 Home Entertainment Spending Increased 2%4 May, 2017 By: Erik Gruenwedel
Total domestic consumer spending on home entertainment in the first quarter (ended March 31) reached $4.7 billion, a 2% increase compared with the previous-year period, according to data from DEG: The Digital Entertainment Group.
Electronic sellthrough, aka Digital HD, was the key revenue driver, with sales up 13% to $572 million, from $505 million a year ago. Digital sales of theatrical titles — notably animated — were up 30%.
Best-selling digital titles included Moana (Walt Disney Studios Home Entertainment), Trolls (20th Century Fox Home Entertainment), Sing (Universal Pictures Home Entertainment), Beauty and the Beast (Disney), The Secret Life of Pets (Universal) and Storks (Warner Bros. Home Entertainment).
Transactional VOD rentals via pay-TV operators declined nearly 5% to $571 million, from $599 million a year ago, while online VOD rentals increased 13%.
Subscription streaming revenue — driven by Netflix, Amazon Prime Video and Hulu — rose more than 26% to $1.8 billion.
Meanwhile, sales of DVD and Blu-ray Disc titles reached nearly $1.2 billion, down 14.3% from nearly $1.4 billion a year ago.
Packaged-media rentals continue to decline, notably among kiosks, where revenue was down more than 17% to $339 million. Redbox, which was acquired by an investor group last year, no longer reports financial results.
Legacy video store rental revenue dropped 22% to $107 million, while by-mail rentals fell almost 17% to $123 million.
DEG said more than 2.6 million 4K Ultra HD televisions were sold in the quarter, up 54% from the previous-year period. While 115 million U.S. households have either a HDTV or 4K UHD TV, 92 million have Blu-ray Disc players, including nearly 4 million Ultra HD BD players.
The trade group said there were 139 4K Ultra HD Blu-ray titles available on the market, with 900,000 total units sold in the quarter.