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DEG: Home Entertainment Spending Up 2%

Los Angeles — The Digital Entertainment Group (DEG) reports that overall spending on home entertainment was up 2 percent in the first half of 2013.

In DEG’s “Mid-Year 2013 Home Entertainment Report,” compiled by its members’ tracking sources and retail input, Blu-ray Disc sales were up 15 percent year on year while electronic sell-through was up 50 percent

Marked by steady growth in digital distribution and continuing double-digit increases in Blu-ray Disc sales, the home entertainment sector saw sustained stability in the first half of 2013, highlighted by a 2 percent increase in consumer spending compared with the first half of 2012, DEG said.

In addition to the positive growth of Blu-ray, the industry experienced a remarkable jump in electronic sell-through (EST) revenue in the first six months of the year, underscoring the favorable consumer response to the convenience and ease of digital collections and the increased availability of digital content at retail.

DEG said the increases in Blu-ray and EST sales offset the declines in DVD sales leaving total sell-through flat vs. a year ago.

Among the highlights in the first half of the year:

• Blu-ray Disc sales continued to grow steadily in the first half of 2013, with consumer spending up 15 percent compared to 2012. Sales of new-release product on Blu-ray rose 19 percent during the first half of 2013, and catalog titles on Blu-ray were up more than eight percent vs. the first half of 2012.

• Digital distribution provided additional growth in the first half of the year due to a healthy consumer reaction to EST, which led to a 50 percent increase in EST consumer spending compared with midyear 2012. The overall consumer spend on digital product was up more than 24 percent vs. a year ago.

• With more than 10,000 film and TV titles available to watch on an array of devices, UltraViolet has grown to 13 million accounts. The digital viewing experience is now available to consumers through major retailers in six countries, the latest being Australia and New Zealand.

• More than 5 million Blu-ray Disc-compatible devices were sold in the first half of the year (inclusive of BD set-tops, PlayStation3s and HTiBs). There are now more than 61 million Blu-ray-compatible devices in U.S. ho