EMA: Discs Still Dominate4 Jun, 2014 By: Chris Tribbey
Overall consumer spending on video was $18.2 billion in 2013, with physical media accounting for 65% of the take, according to a new report from the Entertainment Merchants Association (EMA).
The report (titled 2014 D2 Report: Discs & Digital – The Business of Home Entertainment Retailing) found that spending on Blu-ray Disc and digital made up for continuing declines in DVD, and that 50% of homes subscribe to at least one video service.
Culling data from numerous sources — including DEG: The Digital Entertainment Group, Frank N. Magid Associates, IHS Electronics and Media, The Nielsen Co., The NPD Group, Parks Associates, and Rentrak Corp. — the report notes that while Blu-ray Disc revenue jumped 5% year over year, electronic sellthrough revenue was up 50%.
On the video game side, the report found total physical video game spending, including used and rental, barely exceeded digital game spending, and that digital game spending surpassed spending on new discs for the first time. A majority of a people in every age group said they play games, according to EMA.
“Physical retailing remains the mainstay of the video and video game industries, but clearly the digital market is firmly entrenched as a significant and growing sector,” said EMA president and CEO Mark Fisher. “As a result, the consumer today has more options for enjoying video and video games however, wherever, and whenever they want.”
The report, which includes commentary from executives at retailers and distributors, is available via EntertainmentMerchantsAssociation.org.