Los Angeles - Consumer
spending on DVDs, Blu-ray discs and digital distribution dropped 3.3 percent to
$8.8 billion for the first half of 2010 compared with the same period last
year, according to midyear figures released Monday by the Digital Entertainment Group (DEG
spending on home entertainment products was up 2.3 percent in the same period,
the group said.
The DEG, whose
members comprise companies in the video software and hardware industries, said
that spending for home entertainment was nearly flat, down only 0.7 percent, in
the second quarter compared with the same period in 2009.
Blu-ray Disc sales
and rentals continued to be strong, achieving a combined $982 million for the
first half of the year. Blu-ray Disc
sell-through was up 84 percent to $733 million at the midyear point compared
with the same period last year, according to the DEG.
sell-through also grew a 112 percent in the second quarter, to $363 million,
compared with second-quarter 2009.
packaged-media sell-through, which includes DVD and Blu-ray Disc, declined 7.1
percent in the first half of the year compared with the same period last year.
In the second quarter, packaged-media sell-through declined only 3 percent
compared with second quarter 2009.
The group reported
that digital distribution maintained a steady rise with electronic sell-through
(EST) up 36.9 percent to $285 million and video-on-demand (VOD) up 19.1 percent
to $865 million in the first half of the year, a combined growth of 23.1
percent to $1.1 billion, surpassing the $1 billion mark for the first time for
a six month period.
hardware sales continued to climb in the first half of the year, selling almost
2 million set-top units, an increase of 103 percent over the same period last
This brings the
total installed base of Blu-ray Disc playback devices in the U.S. to 19.4
million units, according to the DEG.
"The growth of
Blu-ray, both hardware and software, continued to dominate the home
entertainment landscape in the first half," said Ron Sanders, DEG president and
president of Warner Home Video. "Clearly, we are still grappling with a
challenging marketplace and a tough economy, but overall the trends that we are
seeing are encouraging."
Rentrak Home Video Essentials reporting, rental spending was down 4.9 percent
to just less than $3 billion in the first half of 2010. The DEG said the
overall market continues to be hindered by the Movie Gallery store closures,
although kiosk rental revenue was up 55 percent in the first half of the year.
The DEG compiles
quarterly sales data based on input from member companies, retailers and
industry association tracking sources.
first-half findings: Blu-ray Discs shipped to retail in the first half of 2010
topped 77 million, up 98 percent over the comparable period in 2009, according
to figures compiled by Swicker & Associates on behalf of the DEG.
penetration of all Blu-ray Disc-compatible devices, including set-top players,
PC drives and PlayStation3 consoles, has now reached 19.4 million U.S. homes.
A total of 79
million HDTVs have sold to consumers cumulatively to date, according to figures
compiled by the DEG based on data supplied by the Consumer Electronics Association,
retailers and manufacturers.
With some 8.5
million HDTVs selling in the first half of the year, U.S. household penetration
is at approximately 51.32 million, the DEG said.
million DVD players sold to U.S. consumers in the first half of 2010, according
to DEG reports.
Since launching in
spring 1997, some 284 million DVD players -- including set-top and portable DVD
players, home theater in a box systems, TV/DVD and DVD/VCR combination players
-- have sold to consumers, bringing the number of DVD households to
approximately 91 million (adjusting for households with more than one player).
The DEG estimates
that some 68 percent of DVD owners have more than one player.
Los Angeles - Consumer spending on DVDs, Blu-ray discs and digital distribution dropped 3.3 percent to $8.8 billion for the first half of 2010 compared with the same period last year, according to midyear figures released Monday by the Digital Entertainment Group (DEG).