2012 Blu-ray Sales Trends: Put all historical sales figures and comments here! (New) - AVS Forum
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post #1 of 73 Old 06-11-2012, 01:43 PM - Thread Starter
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moderator's note Put all sales information
and comments in this thread.
Please do not start any new sales-oriented threads.
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post #2 of 73 Old 06-11-2012, 01:44 PM - Thread Starter
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Historical data under construction .

Please scroll down to end of thread for current discussion.

Thanks!

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post #3 of 73 Old 06-11-2012, 01:44 PM - Thread Starter
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PLEASE USE THIS THREAD FOR ANY DISCUSSION OF LONG TERM BLU-RAY SALES RESULTS OR TRENDS OR ARTICLES
LIKE HISTORICAL QUARTERLY ANNUAL SALES OR MARKET TRENDS



PLEASE USE THIS OTHER THREAD FOR DISCUSSION OF SHORT TERM WEEKLY OR BY TITLE BLU-RAY OR DVD SALES RESULTS

Current Weekly Blu-ray sales results and discussion here

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post #4 of 73 Old 06-11-2012, 01:44 PM - Thread Starter
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from HDD with some historical data links


This is a the newest version ( started January 2012) continuation of the Nielsen/Videoscan sales thread.

This thread is for all discussion of Blu-ray sales stats on how Blu-ray sales are compared to DVD . Discussion of the Home Media Magazine stats and all other industry released sales statistics on Blu-ray is encouraged. This mostly will focus on software sales, as we get the most consistent information there, but relevent hardware sales talk is also allowed.

The first pages or so have summary posts aor historical data or stuff I think are useful as reference for the 2011 discussion. Requests to put stuff on the top of the thread can be posted in the thread or PMd to me or I may harvest stuff as I see it.

Discussion on current week sales figures are generally near the last couple pages of the thread, with current new weekly data coming in sometime late Wednesday afternoon to late evening when Home Media Magazine and The Hollywood Reporter give initial info on the Nielsen Videoscan first alert data which is released on that day for the last weeks data which ends on Sunday.

I've stopped trying to give a link to the latest week's discussion as the early posting of the Blu-ray and DVD research charts at Home Media magazine's homepage on Wednesday has kinda blended things together. Just go the last few pages of the thread and look for the graphs and charts to find the start of this weeks current discussion.

We now get the Nielsen Videoscan first alert Top 20 Sellers and Top 20 Blu-ray and BD Title Share and Rental charts publised a week before we get the revenue numbers from HMM, on a Monday through Sunday reporting week.

The revenue numbers for Blu-ray and DVD are now coming from HMM a week later with a one day offset with a Sunday through Saturday reporting week starting mid December 2010.

older threads located here:


http://forums.highdefdigest.com/high-definition-smackdown/112109-2011-blu-ray-sales-metrics-stats-weekly-hmm-nielsen-videoscan-quarterly-rentrak-deg.html

http://forums.highdefdigest.com/high-definition-smackdown/98036-2010-blu-ray-sales-metrics-stats-nielsen-videoscan-hmm-charts-ratios-bestsellers-etc.html

2009 Blu-ray Sales Metrics Stats: Nielsen/Videoscan/HMM Charts/Ratios/Bestsellers Etc

Nielsen/VideoScan 2008 Sales Metrics Thread: Ratios, Bestsellers, Weekly Charts etc

2007 sales metrics thread


For the record:

Why and how I do this stuff...

..
Quote:
Quick question: with all the tables and graphs, WHEN do you find time to watch any movies????
Quote:
Originally Posted by Kosty 
Almost everyday I find time when I'm not traveling to watch HD movies.

I'm interested in the success of HD movies and home theater and I have friends who like my analysis.

Plus once I've started , I have a lot of guys out there who have encouraged me and look forward to my comments and data roll up update each week so I kinda feel obligated.

I multi task during the day and night. I watch at least a HD movie a day, maybe more, if I'm not on the road.

If I'm incrementally adding on to the charts each week it takes less time that creating them from scratch, so its a routine. Pretty much I'm analyzing them as I type, so it takes less time, although I make an occasional typo or make a mistake that I hopefully catch when I re read them in context.

I'm reasonably fluent in Excel skills and I don't spend a lot of time making them pretty. Its a subject I'm interested in and I'm just sharing the joy. Posting started as a professional writing exercise and its now a habit. Most of the time comes in when the new data from TheNumbers.com gets released and I do the unit calculations. Did I say that I multi task pretty well?

Plus at this point, I have a lot of you guys double checking my data, so I feel pretty confident that if/when I make mistakes someone will catch it, so I feel free to just post.

This is fun stuff to do analysis on. Much easier to do it than with other subjects that I've been paid to do in the past.

For me its a stream of consciousness, multitasking orgy of analysis, connections, trade connections, forwarded PMs, emails, telephone calls, trade magazine reading, and basic curiosity from me and my real world business associates and clients.

That and reasonably fast typing skills.

I just like sharing some of the information I can find and organize in a way that keeps things in perspective and helps kill the FUD. Plus its a hobby and habit now and I learn a lot that helps out my real world clients as well as my own home theater enjoyment.

I'd rather let the facts speak for themselves or at least have all sides of the arguments presented so people can think for themselves.

Last but not least, I think this time is a bit significant in the adoption of high definition video and lossless audio in the home. I've to a degree met a lot of players in the industry and I kinda feel almost that I'm been seeing a bit of marketing and consumer electronics history. So at this point, I'm just feeling obligated to go along for the ride and see it through.

Glad someone out there appreciates it.

Kosty
Quote:
Originally Posted by Kosty 
For the uninitiated, Wal-Mart does not cooperative with any data aggregators directly anymore, as the largest retailer it figured it was getting less out of the deal. But the weekly Nielsen Videoscan first alert report pretty much takes the point of sale cash register electronically reported data each week and keeps track of every transaction by price and SKU.

So for the most part, unless Wal-Mart had a special promotion or event (like Twilight DVD special edition and no Blu-ray version at all a few months ago) the Wal-Mart rankings will be almost exactly like the rest of the market. Pretty much its a 100% census of packaged media sales each week of every retailer with more than one store in the country. Or if you will a 60% sample size of the DVD market and 75-80% sample size of the Blu-ray market down to the individual transaction level.

The home media magazine weekly revenues add in an adjustment for Wal-Mart on top of the Nielsen Videoscan data and my top 20 estimates in this thread do so as well.

As of mid December 2010 HMM has transitioned into using additional data for their revenue estimates with studio input. This should help them provide a more accurate estimate of Walmart DVD and Blu-ray sales over time. When new revenues are being published the previous years estimates may also be revised to the best available final data.

Old Nielsen Videoscan retailers list and Nielsen Videoscan overview



All of the charts involving individual titles and their Blu-ray marketshare or relative sales Index numbers are always based on unit sales. They are generated based on the units sold by SKU off the Nielsen Videoscan first alert report that comes out on Wednesday for the week ending the Sunday before.

Any charts based on the Nielsen Videoscan first alert report also don't include Wal-Mart in their Blu-ray marketshare or unit calculations, although its a fair assumption that Wal-Mart sales would be similar, especially as Blu-ray has become more mainstream and mass market and lower in price and the Walmart share of Blu-ray sales has risen over time.

Only HMM statistic that is revenue based is the overall format revenues and now the pie chart. Thats based on the Nielsen Videoscan first alert report, plus HMMs adjustment for Wal-Mart revenues and probably a nudge up for the first alert versus final number undercount. As of mid December 2010 HMM now uses additional input directly from the studios to generate the revenue data and has delayed the publication of the DVD and Blu-ray data for one week behind the individual title information and top 20 charts. As stated above, the revenue data is now offset one day with a Sunday through Saturday reporting week.

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post #6 of 73 Old 06-11-2012, 01:45 PM - Thread Starter
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The DEG has the end of 2011 report including a second half and end of year table.

Here is the base press release.

http://www.degonline.org/pressreleases/2012/DEG_year_end_2011.pdf

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Here is the data table of the DEG EOY 2011 report.

deg2012.jpg

Press release

Consumer spending chart

hattip Ray Von

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Quote:
2011 - The Year of the Turnaround for the Home Entertainment Industry?


The Year of the Turnaround?


26 Dec, 2011
By: Thomas K. Arnold

Growth.jpg

Home entertainment executives aren’t quite ready to sing “Happy Days Are Here Again,” but things certainly began to look up again in 2011.

Hollywood finally broke the back of Netflix — or, rather, watched Netflix break its own back — after years of railing against the subscription rental service for taking too many consumer dollars out of the market and not only cannibalizing sellthrough, but also not sharing to the degree the studios felt was appropriate.

The home entertainment industry also posted its first positive quarter since the start of the 2008 global economic meltdown, with consumer spending in the third quarter of 2011 actually up from the comparable year-ago period.


While electronic sellthrough, or EST, remained a nonstarter, the video-on-demand business began showing some serious signs of life, drawing consumers away from the physical rental business the studios have never really been keen on.

And in perhaps the biggest development of 2011, a consortium of studios and other companies launched UltraViolet, a cloud-based digital locker that lets consumers stream and download purchased content to multiple platforms and devices.

But it was packaged media’s comeback-kid performance in the tail end of the year that has studio executives looking forward to even better times ahead.


“We started out the year with tough year-over-year comps to box office, but have made steady gains throughout 2011, with an especially strong third quarter,” said Ron Sanders, president of Warner Home Video. “We seem to be getting some momentum in the sellthrough space, with catalog being a particular bright spot. Black Friday was very strong this year and also bodes well for a strong finish to 2011 and good momentum into the first quarter of 2012.

“The third-quarter numbers were an indicator that our business is on track for a strong performance for the rest of this year and into the future,”
added David Bishop, president of Sony Pictures Home Entertainment. “A strong upcoming slate of highly anticipated new releases like The Girl With the Dragon Tattoo, Mission: Impossible — Ghost Protocol and Steven Spielberg’s War Horse, as well as franchise titles like Men in Black III, the new Spider-Man and the new ‘Batman,’ promise an even stronger 2012.”

Lori MacPherson, EVP of global product management for The Walt Disney Studios, said 2011 saw unprecedented synergy between technology and choice.

“As entertainment consumption choices are proliferating, 2011 was about harnessing technology to create innovative entertainment experiences for consumers wherever they enjoy our content,” she said. “From applications like Disney’s Second Screen that provide an immersive experience, to multimedia combo packs that offer the ultimate in functionality and convenience, to 3D, which provides yet another way to engage viewers, we’re continuing to explore ways to enhance the consumer experience.”

“2011 showed that home entertainment continues to excite and enthrall consumers,” added Dennis Maguire, president of worldwide home media distribution for Paramount Pictures. “Blu-ray and EST continued to surge, and new delivery systems and devices offer viewers more and more opportunities to enjoy our content, expanding demand even further.”


Lionsgate president Steve Beeks agrees.

“We don’t view the home entertainment landscape as an either/or proposition between our traditional and digital media partners,” he said. “We believe, instead, in the continued need to enhance the packaged-media experience through incorporation of new technologies — and, at the same time, capitalize on emerging opportunities to monetize our content through social networks, electronic sellthrough and myriad apps that enrich the home entertainment and mobile viewing experience.”

The plethora of new viewing options made managing windows more important than ever, Beeks said.

“We believe that it is important to listen to the consumer, and the consumer is telling us that they want flexibility and they attach premium value to sequenced windows with pricing based on convenience and availability,” he said. “The addition of sequential windows has historically enlarged the size of the home entertainment revenue pie, and we believe it will continue to do so. We will continue to explore new models and tailor availability to individual films in the premium-VOD space.”

After several tough years, the home entertainment industry also has learned to manage its expectations. The gaga days of DVD are gone, and Blu-ray Disc, which turned 5 in 2011, never had quite the same impact. But fault lies not with the format, but with a misinterpretation of consumer habits. The glory years of DVD had everyone convinced a nation of renters had become a nation of buyers, and once Blu-ray Disc took hold everyone would buy their libraries all over again.

But DVD was something of a false bubble; consumers had never before been able to own movies at an affordable price the very first day they hit home video, so they went overboard, buying movies they never intended to watch again and amassing huge collections of discs, many of them never opened.


Once the novelty wore off, consumers effectively split into two camps. The ones who had bought DVDs because the price was so low and it was more convenient than renting now had Netflix, Redbox and streaming to satisfy their cravings. Meanwhile, the ones who had become genuine collectors continued to buy, although a lot more selectively than before.

This year, the realization finally set in that the industry is unlikely to see a hot new release sell upwards of 10 million units its first couple of days in stores. But in the spirit of making lemonade from lemons, when a more modest sales tally is registered, it’s acknowledged and applauded — particularly since the consumer rush to buy on day one is over and the industry once again is seeing its product sprout legs.

That said, the success of Blu-ray Disc is nothing short of phenomenal. Even during the worst economic crisis since the Great Depression, the format continued to post sales gains — one of the only consumer products to do so other than the Apple iPhone.

And in the fourth quarter of 2011, Blu-ray Disc sales accelerated to the point where even family titles were generating at least half, if not more, of their sales from the high-definition disc — partly a function of the proliferation of combo packs, but also a reflection of growing consumer awareness and acceptance. Another factor, albeit to a lesser degree, was the emergence of Blu-ray 3D.


“Blu-ray had a remarkable year, with the format showing significant growth and bolstering overall home entertainment consumer spending for the first time in three years,” said Craig Kornblau, president of Universal Studios Home Entertainment. “New releases benefitted tremendously, with female-targeted comedies like Bridesmaids hitting the masses and surpassing industry expectations.

Catalog also saw impressive gains, as evidenced with the stellar Blu-ray debuts of such huge fan favorites as Scarface, Star Wars and The Big Lebowski. With the number of Blu-ray homes exceeding 30 million and growing — and with more than half of first-week sales of physical products now credited to Blu-ray — the consumer appetite for high-def movies has never been more palpable.”


Indeed, summer tentpoles such as 20th Century Fox’s X-Men: First Class and Warner’s Harry Potter and the Deathly Hallows — Part 2 sold incredibly well on Blu-ray, beating studio expectations by as much as 20%, insiders say. Warner didn’t release sales numbers, but Fox says the latest 'X-Men' movie is on track to sell nearly 8 million units, half of them on Blu-ray.

Catalog sales, too, are finally starting to climb, with another Fox title, the six-film Star Wars: The Complete Saga, selling 1 million Blu-ray Disc units — 515,000 of them in North America — its first week in stores, an unprecedented number for a nine-disc set at a premium price. First-week sales represented $84 million in worldwide consumer spending.

2012 will extend growth for Blu-ray, and it will continue to drive the high-definition revolution in American homes,” said Mike Dunn, president of 20th Century Fox Home Entertainment.

Other studio presidents agree.

Consumers are stepping up their purchases of Blu-ray, and we see this continuing into 2012,” said Warner’s Sanders. “The connected BD devices are selling at incredibly compelling price points this fourth quarter, and hardware sales continue to be very strong.”

“In 2011 we saw steady growth for Blu-ray and the launch of Blu-ray 3D, which provides unique opportunities for new release and catalog programming,” added Disney’s MacPherson.

Netflix continued to make headlines in 2011. As the year began, the once-frosty relationship between the studios and Netflix had thawed to one of grudging acceptance, with most studios holding back new releases in return for lower prices. But while the studios may have holstered their guns, Netflix took a big hit when Starz Entertainment ended content license renegotiations, losing access to movies from Walt Disney Studios and Sony Pictures Entertainment once the current deal expires next February. A short time later came a self-inflicted wound: an ill-fated attempt to spin off the disc rental segment of its business, which sent its stock price spiraling downward.

The year’s other biggest headline was the launch of UltraViolet, a digital rights authentication and cloud-based licensing system with a “buy once, play anywhere” approach. Consumers can store digital proof-of-purchases under one account and then play back their content at any time, on virtually any device. UltraViolet was developed and deployed by the Digital Entertainment Content Ecosystem consortium, which includes five of the six major studios and mini-major Lionsgate, as well as retailers, consumer electronics manufacturers, cable companies, ISPs, network hosting vendors and other Internet vendors. The only flies in the ointment: Apple doesn’t support it, and Walt Disney Studios is developing its own competing digital locker, Disney Studio All Access.

“UltraViolet has had a good start, given the limited amount of titles in the system so far,” Sanders said. “The conversion rates for UV digital copies are very good on Blu-ray, which we think is also driving sales of new releases. Consumers are excited about the prospects for streaming and mobile device use with UV, and we think as the ecosystem continues to develop, it only drives more consumers to own more content.”

To be sure, challenges remain. 3D has yet to come into its own, in large part due to the various competing formats on the hardware side. BD-Live never became a major selling point, and retail merchandising on behalf of Blu-ray Disc, in the minds of many observers, remains woefully inadequate compared with the royal welcome afforded DVD a decade ago.


But the studios, to their credit, appear ready and willing to try anything to grow the business, from Warner Home Video offering movie rentals on Facebook to three studios cutting a deal with Google to add more than 3,000 films for rent on YouTube, some available the same day as the DVD and Blu-ray Disc.

We have to be innovative and adapt to consumer trends,” Sanders said. “We’ve seen from adjacent content categories that to ignore the consumer can have dire consequences. While the consumption of content has become more complicated, we have to keep offering new and creative ways for consumers to discover and enjoy our films and TV shows.”

On the retail front, the home entertainment world continues to revolve around Walmart, Target, Best Buy and, to a lesser extent, Costco and Amazon. Borders went bust, and Blockbuster was salvaged from bankruptcy by a satellite company, Dish Network, in a deal that still has observers scratching their heads and wondering, “Why?”

Studio executives continue to see the retail channel as critical to the success of packaged media, their biggest profit-generator. They chalked up some gains in 2011 on the merchandising front when Target began putting new releases on checkout-lane endcaps, Walmart shed the locked cabinets and integrated Blu-ray Disc with DVD, and Best Buy, in a sweeping store redesign, moved movies in with home theater hardware. But, at the same time, the proverbial “race to the bottom” intensified, with new Blu-ray Discs selling for less than $15, even lower than first-week pricing on DVD in the halcyon days of that format.

Overall, however, studio executives are quite pleased with the current retail environment for Blu-ray Disc and DVD.

“We were very encouraged this year by all of our largest retail partners, who clearly reinforced their tremendous commitment to our category,
” said Universal Studios’ Kornblau. “Not only did they significantly grow their home entertainment footprints in stores to include expanding the space in the main aisle and adding new releases fixtures at the front of store, but they also excelled in successfully leveraging the industry’s biggest movie releases to drive greater store traffic. As a result, we saw some of the year’s biggest successes, such as our own Fast Five and Bridemaids, benefit substantially from the heightened level of excitement and increased purchase activity.”

What does 2012 hold in store? Powered by a strong slate of product in the pipeline as well as the promise of 3D, packaged-media sales are expected to once again post year-over-year gains, while digital, spurred by UltraViolet, will grow “exponentially,” as Sony Pictures’ Bishop puts it.

“UltraViolet will prove to be a major game changer and will be an important complement to physical product,” Bishop said. “I am confident that as our industry satisfies consumer demand for great entertainment and provides convenient digital and physical distribution, our business will continue its robust performance.”

Sanders shares Bishop’s optimism.

“We foresee a broad rollout of UV, with more studios, much more product and strong retailer involvement,” he said. “Blu-ray will continue its growth through the year, especially as price points for catalog become more competitive. We also see a faster digital adoption of content, both with UV functionality across devices and the conversion of DVD’s to digital libraries in the cloud.”

Disney’s MacPherson also is looking forward to the new year.

“In 2012,” she said, “we’ll see greater consumption of Blu-ray and the many digital offerings, new and compelling 3D applications as well as the emergence of even more ubiquitous consumer access to our content.”

Paramount’s Maguire also believes “this upward trend” the home entertainment industry saw in the tail end of 2011 will continue, “as entertainment centers in the home get more sophisticated and the consumers who own them become more appreciative of high-definition, 3D and other enhancements.”

“We’ll also see continued growth in digital delivery,” he added, “giving us multiple ways to provide and monetize our content.”

http://www.homemediamagazine.com/market-analysis/year-turnaround-25968


[URL="[url]http://www.nxtbook.com/nxtbooks/questex/hom904467YNC/index.php?startid=Cover1&WidgetId=null&BookId=122b5c2e519abbf576c3302066daa996#/3/OnePage[/url]"]This weeks digital issue is up.
[/URL]


This special year end issue of HMM is usually the one that gets mass free distribution to all of the attendees at the Consumer Electronics Show in Las Vegas. This year its January 10-14, 2012.




mkyvlc.jpg

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4vsjsy.jpg

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2i6jpt.jpg





http://www.nxtbook.com/nxtbooks/questex/hom904467YNC/index.php?startid=Cover1&WidgetId=null&BookId=122b5c2e519abbf576c3302066daa996#/3/OnePage

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post #8 of 73 Old 06-11-2012, 01:45 PM - Thread Starter
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Here are just the quotes as best I can see in context:


Quote:
Warner

But it was packaged media’s comeback-kid performance in the tail end of the year that has studio executives looking forward to even better times ahead.

“We started out the year with tough year-over-year comps to box office, but have made steady gains throughout 2011, with an especially strong third quarter,” said Ron Sanders, president of Warner Home Video.

“We seem to be getting some momentum in the sellthrough space, with catalog being a particular bright spot. Black Friday was very strong this year and also bodes well for a strong finish to 2011 and good momentum into the first quarter of 2012."


“Consumers are stepping up their purchases of Blu-ray, and we see this continuing into 2012,” said Warner’s Sanders. “The connected BD devices are selling at incredibly compelling price points this fourth quarter, and hardware sales continue to be very strong.”

“UltraViolet has had a good start, given the limited amount of titles in the system so far,” Sanders said. “The conversion rates for UV digital copies are very good on Blu-ray, which we think is also driving sales of new releases. Consumers are excited about the prospects for streaming and mobile device use with UV, and we think as the ecosystem continues to develop, it only drives more consumers to own more content.”

“We have to be innovative and adapt to consumer trends,” Sanders said. “We’ve seen from adjacent content categories that to ignore the consumer can have dire consequences. While the consumption of content has become more complicated, we have to keep offering new and creative ways for consumers to discover and enjoy our films and TV shows.”

Sanders shares Bishop’s optimism.

“We foresee a broad rollout of UV, with more studios, much more product and strong retailer involvement,” he said. “Blu-ray will continue its growth through the year, especially as price points for catalog become more competitive. We also see a faster digital adoption of content, both with UV functionality across devices and the conversion of DVD’s to digital libraries in the cloud.”


Quote:
Sony

“The third-quarter numbers were an indicator that our business is on track for a strong performance for the rest of this year and into the future,” added David Bishop, president of Sony Pictures Home Entertainment. “A strong upcoming slate of highly anticipated new releases like The Girl With the Dragon Tattoo, Mission: Impossible — Ghost Protocol and Steven Spielberg’s War Horse, as well as franchise titles like Men in Black III, the new Spider-Man and the new ‘Batman,’ promise an even stronger 2012.”

What does 2012 hold in store? Powered by a strong slate of product in the pipeline as well as the promise of 3D, packaged-media sales are expected to once again post year-over-year gains, while digital, spurred by UltraViolet, will grow “exponentially,” as Sony Pictures’ Bishop puts it.

“UltraViolet will prove to be a major game changer and will be an important complement to physical product,” Bishop said. “I am confident that as our industry satisfies consumer demand for great entertainment and provides convenient digital and physical distribution, our business will continue its robust performance.”

Quote:
Walt Disney

Lori MacPherson, EVP of global product management for The Walt Disney Studios
, said 2011 saw unprecedented synergy between technology and choice.

“As entertainment consumption choices are proliferating, 2011 was about harnessing technology to create innovative entertainment experiences for consumers wherever they enjoy our content,” she said. “From applications like Disney’s Second Screen that provide an immersive experience, to multimedia combo packs that offer the ultimate in functionality and convenience, to 3D, which provides yet another way to engage viewers, we’re continuing to explore ways to enhance the consumer experience.”

In 2011 we saw steady growth for Blu-ray and the launch of Blu-ray 3D, which provides unique opportunities for new release and catalog programming,” added Disney’s MacPherson.

Disney’s MacPherson also is looking forward to the new year.

“In 2012,” she said, “we’ll see greater consumption of Blu-ray and the many digital offerings, new and compelling 3D applications as well as the emergence of even more ubiquitous consumer access to our content.

Quote:
Paramount

“2011 showed that home entertainment continues to excite and enthrall consumers,” added Dennis Maguire, president of worldwide home media distribution for Paramount Pictures. “Blu-ray and EST continued to surge, and new delivery systems and devices offer viewers more and more opportunities to enjoy our content, expanding demand even further.”

Paramount’s Maguire also believes “this upward trend” the home entertainment industry saw in the tail end of 2011 will continue, “as entertainment centers in the home get more sophisticated and the consumers who own them become more appreciative of high-definition, 3D and other enhancements.”

“We’ll also see continued growth in digital delivery,” he added, “giving us multiple ways to provide and monetize our content.”

Quote:
Lionsgate


Lionsgate president Steve Beeks agrees.

“We don’t view the home entertainment landscape as an either/or proposition between our traditional and digital media partners,” he said.

“We believe, instead, in the continued need to enhance the packaged-media experience through incorporation of new technologies — and, at the same time, capitalize on emerging opportunities to monetize our content through social networks, electronic sellthrough and myriad apps that enrich the home entertainment and mobile viewing experience.”

The plethora of new viewing options made managing windows more important than ever, Beeks said.

“We believe that it is important to listen to the consumer, and the consumer is telling us that they want flexibility and they attach premium value to sequenced windows with pricing based on convenience and availability,” he said. “The addition of sequential windows has historically enlarged the size of the home entertainment revenue pie, and we believe it will continue to do so. We will continue to explore new models and tailor availability to individual films in the premium-VOD space.”


Quote:
Universal

Blu-ray had a remarkable year, with the format showing significant growth and bolstering overall home entertainment consumer spending for the first time in three years,” said Craig Kornblau, president of Universal Studios Home Entertainment.

“New releases benefitted tremendously, with female-targeted comedies like Bridesmaids hitting the masses and surpassing industry expectations. Catalog also saw impressive gains, as evidenced with the stellar Blu-ray debuts of such huge fan favorites as Scarface, Star Wars and The Big Lebowski.[/B]

With the number of Blu-ray homes exceeding 30 million and growing — and with more than half of first-week sales of physical products now credited to Blu-ray — the consumer appetite for high-def movies has never been more palpable.”


“We were very encouraged this year by all of our largest retail partners, who clearly reinforced their tremendous commitment to our category,” said Universal Studios’ Kornblau. “Not only did they significantly grow their home entertainment footprints in stores to include expanding the space in the main aisle and adding new releases fixtures at the front of store, but they also excelled in successfully leveraging the industry’s biggest movie releases to drive greater store traffic.

As a result, we saw some of the year’s biggest successes, such as our own Fast Five and Bridemaids, benefit substantially from the heightened level of excitement and increased purchase activity.”

Quote:
Fox

2012 will extend growth for Blu-ray, and it will continue to drive the high-definition revolution in American homes,” said Mike Dunn, president of 20th Century Fox Home Entertainment.

Other studio presidents agree.

.
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Releases matter.

Notice its Time Warner not just the studio Warner.
Quote:
Time Warner CFO: Q4 Home Entertainment Sales ‘Challenged’


5 Jan, 2012
By: Erik Gruenwedel

TimeWarnerlogo0.jpg

CFO John Martin says Warner Bros. is well-positioned to face 2012 transformations in home entertainment

Warner Bros.’ adoption of alternative distribution channels in home entertainment should help the studio weather continued challenges to the home video sellthrough market, Time Warner’s CFO told an investor group.

Speaking Jan. 5 at the Citi Global Entertainment, Media & Telecommunications Conference in San Francisco, CFO John Martin said promising third-quarter results in home entertainment spearheaded by a resurgence in Blu-ray Disc sales appeared to have hit a wall in the just-completed fourth quarter.

“We had encouraging industry results in the third quarter and I understand the results coming out for the fourth quarter look a little bit more challenged, although we’re just getting them now,” Martin said.

The Citi moderator said internal data suggested Warner's home video sales tallied $2.6 billion in 2011 — down from a peak of $3.5 billion in 2007. At the same time, the studio, which includes Warner Home Video, has seen its box office revenue increase from $1.4 billion in 2007 to $1.8 billion last year.

Martin pointed out that Warner Home Video continues to top the annual home video sellthrough chart since such tabulation began. He said that when the final Q4 numbers come in, he believes WHV will have “dramatically” taken additional market share in home entertainment.


“Look, the challenges still exist [in home video],” he said, adding that the perceived secular challenges prompted the studio to embrace alternative distribution strategies such as street-date transactional video-on-demand and premium VOD, among others. “Warner Bros. has been the leading studio at trying top move toward embracing new technology, advantaging channels that are higher margin and disadvantaging those channels that are lower margin.”

Martin said it is that mindset that propelled Warner to spearhead rollout of digital locker UltraViolet, which he said is designed to spur sellthrough and make it easier for consumers to manage their content in a cloud-based format.

He said current adoption of UltraViolet is “not where we want it to be”
but that Warner took the leadership position at the time when ongoing technological challenges mandated action.

“Somebody’s got to try and move forward because the industry has to move more quickly to embrace these higher-margin opportunities,” Martin said.

He said the studio has high hopes for Christopher Nolan’s new “Batman” movie, The Dark Knight Rises, which bows theatrically in the summer and in home entertainment channels thereafter. Martin said recent release of the title’s trailer on YouTube generated more than 12 million views — an industry record, he said.

Finally, Martin reiterated Time Warner’s view on subscription video-on-demand and Netflix in general is that it continues to be a “very interesting way” for consumers to watch older product that cannot be better monetized through other windows, including syndication. He said the studio continues to talk to “any number” of SVOD players about content licensing.

“We have 7,000 movies, 75,000 TV episodes and all of them need to be watched, and all of them need to be paid for,” he said. “We have a lot of stuff that has yet to monetized. And if you look outside of the U.S., virtually nothing has been monetized.”

http://www.homemediamagazine.com/warner/time-warner-cfo-q4-home-entertainment-sales-challenged-26035

Quote:
From the DEG release:

Hollywood’s home entertainment recovery continued in 2011 as consumers bolstered their home viewing experience with HDTVs, Blu-ray Disc players and discs, as well as the expanding offerings through electronic sell-through (EST) and video on demand (VOD) services.

Total consumer spending on home filmed entertainment for the second half of the year rose nearly one percent, fueled by a strong third quarter in which spending was up five percent, which marked the first quarterly increase since 2008. While overall spending for the category was slightly down two percent for the year, the industry’s performance clearly stabilized in 2011.

The recovery continues to be driven by high margin products that are gaining a foothold among consumers, a further indication that the home entertainment market is rebounding and in a healthy state. Among the various services and platforms delivering filmed entertainment, these higher margin businesses — Blu-ray Disc, EST and VOD — showed the strongest growth rates. Some highlights for the year:

• Blu-ray Disc and EST continued to perform remarkably well with consumer spending on Blu-ray sell-through up 20 percent and EST up nine percent for the year. Additionally, consumer spending on VOD was up seven percent.

• Blu-ray Disc has evolved to become the standard for home entertainment. Impressively, both new release and catalog sales saw double digit growth of 20 percent in 2011.

• Increasing the value of ownership for movie lovers, Sony Pictures Home Entertainment, Universal Studios Home Entertainment and Warner Home Video launched their first Blu-ray Disc titles with UltraViolet in 2011. The DEG estimates that more than 100 UltraViolet titles will be available in 2012. Paramount Home Entertainment also has plans to launch titles in 2012.

• The number of Blu-ray homes continues to grow rapidly as Blu-ray players offer consumers increased versatility and affordability. Total Blu-ray penetration in 2011 jumped 38 percent (including BD set-tops, PS3s and HTiBs) with total household penetration of all Blu-ray compatible devices now at nearly 40 million U.S. homes.

• Further, consumers enhanced their home viewing experience by purchasing more than 27 million HDTVs during 2011. HDTV penetration is now at more than 74.5 million U.S. households.

• Consumers continue to show a keen interest in 3D TV, with a dramatic year-over-year increase in titles and unit sales of 3D Blu-ray Discs. Available 3D Blu-ray Disc titles more than tripled in 2011 compared to 2010, growing from 20 to 65, while unit sales increased more than six times in the same period. Some of the major movies now on 3D Blu-ray disc include Avatar, The Lion King, Cars 2, and Pirates of the Caribbean: On Stranger Tides. Source: The Nielsen Company, VideoScan

• The bestselling Blu-ray Disc titles of the year hit major milestones with five titles selling in excess of two million discs. The overall top 10 bestselling home entertainment titles this year, according to Nielsen VideoScan First Alert are:
1. Harry Potter – Deathly Hallows, Part 1
2. Harry Potter – Deathly Hallows, Part 2
3. Tangled
4. Cars 2
5. Transformers – Dark of Moon
6. Bridesmaids
7. Rio
8. The Help
9. Lion King
10. Hangover Part 2
http://www.deadline.com/2012/01/blu-ray-vod-home-video-recovery/

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Twice
Quote:
BDA Sees Blu-ray Growth For Years To Come

By Greg Tarr -- TWICE, 1/10/2012


LAS VEGAS — The future of home video entertainment may be coming from the Cloud, but the trusty Blu-ray Disc player continues to drive volume sales growth and revenue opportunities today.

That was the assessment of Andy Parsons, Blu-ray Disc Association (BDA) U.S. promotions committee chairman and Pioneer Electronics communications and advanced product development senior VP. The BDA is a multi-industry-supported promotional group that is dedicated to promoting developments in the Blu-ray Disc (BD) format.

“While it seems so logical and so obvious to many casual observers that all SD and HD programming will soon be distributed via the Internet, this all-or-nothing argument is too simplistic. What about bandwidth limitations of typical households?” Parsons asked, while comparing the prophesied extinction of optical discs to past predictions of the paperless office.

He pointed out that the average broadband connection speed in the U.S. today is about 5Mbps, which is not enough to support all the content being delivered on discs, including the HD quality and extra content afforded the 50GB Blu-ray platter.

Consumers are also attracted to the ease of use and collectability of physical media. Meanwhile, the continued growth of HDTV penetration and dramatically lower prices for BD players bodes well for demand sustainability, he said.

As for today’s software business, Blu-ray content sales grew 58 percent year over year in the third quarter of 2011, contributing to a cumulative 33.6 million unit U.S. household penetration, according to the Digital Entertainment Group (DEG).

Its latest industry report even showed significant growth in the rental of packaged media, despite the disappearance of numerous mom-and-pop stores.

“I think one key reason for this is that you simply can’t get access to most of the newest content via streaming,” Parsons added. “If I want to see a film that was just released on disc a month or so ago, I probably won’t find it on any of the legitimate streaming services that consumers subscribe to, but I can buy it or rent it on disc.”


Disc-by-mail services should be sufficient to carry the load for the foreseeable future, Parsons added, and they often provide availability and convenience that the momand- pop stores lacked.

Even as Netflix and Blockbuster expand their streaming and download services, renting physical media appears to be in their cards for some time to come.

“I just can’t see how any online rental service can provide a full range of content to their customers without discs, at least not anytime soon,” he said. “I don’t think streaming can really replace discs until it’s truly ubiquitous, matches the content availability, and works as reliably as discs.”

Still, Parsons said, streaming can be very convenient, and “it would be foolish to say that it’s not important. Our position is that it will take far, far longer to fully replace physical media than some people are predicting. Both disc and Internet consumption can coexist for many years to come.”

As for the future of Blu-ray 3D format, Parsons said it’s growing and is “as much a content-driven business as regular Blu-ray and DVD have been, so as the population of titles continues to grow, the interest level among consumers should continue to grow as well.”

He added, “The growth is also somewhat regulated by the adoption rate of 3D HDTV sets, which has grown at a very decent rate — up to about 3 percent penetration, I think — considering that these sets haven’t been on the market very long.”

Still, as prices on BD players drop below the $100 mark, the future for category feature advancement seems limited.

Parsons, though, said, “Bluray players deserve more credit than they get for being the most versatile content nerve center you can buy for your living room.”

At the same time, he said he still sees a promising market for “more upscale players that emphasize quality more than quantity of content.”

For the future, “I think we’ll continue to see new features appear initially at the higher end, such as 1080p-to-4K up-conversion as these displays begin to enter the market. It also may be possible to improve streamed content picture quality with realtime signal processing, much as we do with highly compressed audio streams in some home products.”

Another promising recent development was the introduction of the Ultraviolet virtual content locker system
that enables consumers to pay one price to buy conforming Blu-ray Disc movies along with the rights to access the title in streaming, download and digital copy form for playback on other devices.

“We see Ultraviolet as a way of expanding the functionality of Blu-ray content, as it adds value to the ownership model,” Parsons explained. “I’m personally a big fan of Digital Copy because I travel a lot and like to watch movies on my iPad. Spending a couple of extra dollars for this feature is well worth it to me. Ultraviolet is very similar, except that it encompasses a larger array of platforms through both streaming and downloads.”

As for the future of the BDA, the promotional group will be helping to explain what Ultraviolet is and does as “another compelling reason to invest in Blu-ray titles,” he said. It will also be leveraging online and socialmedia tools in the coming year to present the creators of the BD software and hardware “to explain why they are passionate about the format.”

They will also work with influential “mom bloggers” who have followings outside of the usual technology audience to help explain why recordable Blu-ray is a great way to enjoy and archive personal content.
http://www.twice.com/article/478896-BDA_Sees_Blu_ray_Growth_For_Years_To_Come.php
Quote:
Blu-ray Sales Up 20 Percent in 2011; Brick-and-Mortar Rental Activity Down 28.8 Percent

logo-2011-11-17.png

11:27 AM PST 1/10/2012 by Thomas K. Arnold



hallows_a.jpg
Courtesy of Warner Bros.
"Harry Potter and the Deathly Hallows Part I"

"Harry Potter and the Deathly Hallows Part 1" and "Part 2" were the top-selling titles of the past year, according to Digital Entertainment Group data.

Blu-ray Disc continued to post remarkable gains in 2011 as overall consumer spending on home entertainment stabilized after several years of precipitous drops, according to numbers released this morning by DEG: The Digital Entertainment Group.


Consumers spent a total of $18.04 billion on Blu-ray Disc, DVD and digital sales and rentals during the year, about 2% less than the $18.43 billion they spent in 2010, according to DEG, which bases its figures on studio and retail data.

The box office value of films that came to home entertainment during the year, by comparison, was down 8.7%.



Blu-ray sales soared above $2 billion for the first time ever, rising 20% in the year, as the number of U.S. households with at least one Blu-ray playback device rose to nearly 40 million, a 38% gain from the prior year.

Total consumer spending on packaged media, Blu-ray and DVD, slipped slightly more than 13% to $8.95 billion from $10.52 billion in 2010.

Rental spending (packaged media only) was down 3% to $7.54 billion from $7.6 billion the previous year, with a 28.8% drop in brick-and-mortar rental activity offset by a 31% uptick in the kiosk rental business, mostly Redbox vending machines.

But those declines are to be expected, observers say, as consumers transition to digital delivery, mostly streaming. Overall spending on digital delivery rose 51% to nearly $3.42 billion, up from $2.26 billion in 2010.

The largest chunk of that went to VOD ($1.87 billion) and the new category of subscription streaming ($993.6 million), while electronic sellthrough remained a nonstarter at $553.7 million.


DEG also announced the 10 best-selling titles of 2011, although no specific unit sales totals were provided. The top sellers are, in order, Harry Potter and the Deathly Hallows Part 1, Harry Potter and the Deathly Hallows Part 2, Tangled, Cars 2, Transformers: Dark of the Moon, Bridesmaids, Rio, The Help, The Lion King and The Hangover Part 2.TE]
http://www.hollywoodreporter.com/news/blu-ray-harry-potter-280185
Quote:
DEG: Blu-ray, Digital Helped Lift 2011


10 Jan, 2012
By: Chris Tribbey, Thomas K. Arnold

deglogo.jpg


Higher-margin products and strong consumer spending on Blu-ray Disc helped stabilize the home entertainment industry in 2011, according to full-year figures released Jan. 9 by DEG: The Digital Entertainment Group.

While overall spending on packaged media and digital delivery was down 2% for the year to an estimated $18.04 billion, down from $18.43 billion in 2010, a 20% jump in Blu-ray spending and a 51% jump in digital spending point to a sustained recovery for the industry, DEG reported.

The box office value of films that came to home entertainment during the year, by comparison, was down 8.7%.


The second half of 2011 saw consumer spending on home entertainment up 1%, and the third quarter saw a 5% rise, the first quarterly increase since the first quarter of 2008.

Annual spending on Blu-ray software hit $2 billion for the first time, and Blu-ray players are now in nearly 40 million homes, a 38% rise from 2010.

Electronic sellthrough spending was up 9% for the year, while VOD saw a 7% rise. 3D Blu-ray Disc unit sales were up sixfold year-over-year.


Helping drive Blu-ray spending was the further adoption of HDTV, with more than 27 million HDTVs purchased in 2011, bringing household penetration to more than 74.5 million American homes, DEG reported.

Total consumer spending on packaged media, Blu-ray and DVD, slipped slightly more than 13% to $8.95 billion from $10.52 billion in 2010. Rental spending (packaged media only) was down 3% to $7.54 billion from $7.6 billion the previous year, with a 28.8% drop in brick-and-mortar rental activity offset by a 31% uptick in the kiosk rental business, mostly Redbox vending machines.

But those declines are to be expected, observers say, as consumers transition to digital delivery, mostly streaming. Overall spending on digital delivery rose 51% to nearly $3.42 billion, up from $2.26 billion in 2010. The largest chunk of that went to VOD ($1.87 billion) and the new category of subscription streaming ($993.6 million), while electronic sellthrough remained a nonstarter at $553.7 million.

Five of the 10 best-selling titles of 2011 (in order, Harry Potter and the Deathly Hallows — Part 1, Harry Potter and the Deathly Hallows — Part 2, Tangled, Cars 2 and Transformers: Dark of the Moon) sold more than 2 million discs, according to the data. The rest of the top-selling titles were Bridesmaids, Rio, The Help, The Lion King and The Hangover Part 2.

Looking at 2012, DEG says UltraViolet — the buy-once, play-anywhere, cloud-based digital copy platform — will help keep disc sellthrough relevant, with an estimated 100-plus UltraViolet-enabled titles released during the year.
http://www.homemediamagazine.com/market-analysis/deg-blu-ray-digital-helped-lift-2011-26070
Quote:


logo_pc_main.png

The Bleeding In The Home Entertainment Business Slowed In 2011


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The home-entertainment business has been pummeled in recent years, with revenues falling for seven years in a row, in one year a full 8 percent. But last year, according to the latest numbers from a research group, things brightened slightly, thanks mostly to the rapid growth of digital streaming.

The Digital Entertainment Group, a research consortium backed by Hollywood’s major studios, released data Tuesday showing that overall home entertainment revenue declined only 2 percent in 2011.


As shrinkage goes, it was the smallest since 2008 for the challenged entertainment sector, which tallied $18.4 billion in total rentals and sales for the year, according to DEG.

That $18.4 billion includes the revenue for everything from DVD and Blu-ray, to cable and satellite VOD, to downloads and streaming, of movie and TV content. Interestingly, in the second half of 2011, the DEG reported that revenue from rentals and sales of “home filmed entertainment,” physical and digital alike, actually rose 1 percent.

Even though the DEG is backed by the studios, its revenue numbers are often cited as official benchmarks of industry performance.

According to the DEG, the home entertainment market has declined every year since 2004, when it peaked at $21.8 billion, mainly because of the decline of DVD sales.

One caveat to the latest numbers from the DEG: They were helped by a change in the group’s equation. For the first time, the DEG included revenue from subscription streaming services, which resulted in nearly $994.6 million in additional revenue for 2011.

Overall digital spending for home entertainment – which includes VOD through various carrier services like DirecTV (NYSE: DTV) and Comcast, and electronic sell-through via vendors like Apple’s iTunes – was up 50 percent, according to the trade group, to $3.4 billion.

SEE ALSO: Interview Part 2: Netflix’s Hastings Hurt By Criticism But Over Transition

The kiosk business continued to grow, too, with rentals through outlets like Redbox increasing 31 percent to $1.66 billion. And rentals of Blu-ray and DVD through subscription services like Netflix (NSDQ: NFLX) kept on growing, as well, increasing 4.1 percent to $2.36 billion.

As the studio-backed trade group is prone to do, it touted the performance of high-margin physical media, noting that Blu-ray sales and rentals had increased 20 percent in 2011, reaching $2 billion for the first time.

Still, the market’s legacy revenue streams remain in steep decline. Rental through brick-and-mortar outlets continued to circle the drain, declining 29 percent to just $1.64 billion. And overall sales of “packaged goods” – DVD and Blu-ray – declined 13 percent to $8.9 billion, brought down by the continued cratering of the older format.


http://paidcontent.org/article/419-the-bleeding-in-the-home-entertainment-business-slowed-in-2011/
Quote:
LA Times

Company Town
THE BUSINESS BEHIND THE SHOW

Ben Fritz and Dawn C. Chmielewski



Studios tout UltraViolet as home entertainment revenue falls 2%

January 10, 2012 | 6:42 pm

6a00d8341c630a53ef0162ff5d1f41970d-600wi
Photo: Customers shop for DVDs at a Target store

Hollywood's seven year decline in total home entertainment revenue continued in 2011, but slowed to a modest 2% drop thanks to booming business from kiosks, Blu-ray discs and the Web.

However, movie sales, as opposed to rentals, dropped 12%. That's a problem for film studios, as DVD sales have represented their biggest source of profit over the last decade.

To address the issue, all of Hollywood's major studios except Disney have been working with a coalition of technology companies and retailers on a new initiative called UltraViolet. To spur ownership of movies online, the technology allows consumers to store copies in a digital "cloud" that can be accessed on a variety of devices.


UltraViolet had a troubled launch in October, with technology that some consumers found cumbersome because of the numerous registration steps and new pieces of software that had to be installed. Reactions on message boards, technology blogs and Twitter were overwhelmingly negative.

At a news conference Tuesday at the Consumer Electronics Show in Las Vegas, backers said that 750,000 households have registered to use UltraViolet, but admitted there were some early stumbles.

“The best way to describe the launch is we built this great house, it had an incredible foundation, and in our excitement to move in there was some finished carpentry that still needed to be done,” said Sony Pictures Chief Technology Officer Mitch Singer.


Also announced were some new developments that could help UltraViolet pick up steam. Panasonic and Samsung are both launching Blu-ray players that can read a compatible disc and automatically add the film to a user's digital locker online.

The Samsung device will even let consumers add certain movies they bought on DVD or Blu-ray before UltraViolet existed to their online collection for what a news release described as a "nominal amount" of money.


In addition, Amazon.com announced that it will soon start selling digital downloads of movies from one studio in the UltraViolet format. That's a significant step because previously UltraViolet copies have come as codes with Blu-ray discs and DVDs and could only be accessed online with software from Warner Bros.-owned Flixster.
Amazon Executive Vice President of Digital Content Bill Carr said the partnership with a studio that he declined to identify was signed in the last few days.

According to data released late Monday by the Digital Entertainment Group, total home entertainment revenue in 2011 was $18 billion, down from $18.4 billion the previous year and a high of $21.8 billion in 2004.

Among the businesses that grew significantly were Blu-ray discs at 20% to more than $2 billion, rentals from kiosks such as Redbox to $1.7 billion, and digital downloads and video-on-demand rentals, which grew a combined 7% to $2.4 billion.

Online subscription streaming, a business dominated by Netflix, hit $993 million in 2011, the first year that the Digital Entertainment Group broke out the business into its own category.


However, all of that growth was not enough to make up for the loss of $1.3 billion in spending on movie purchases, as well as a 29% drop in spending at retail stores such as Blockbuster, which shuttered hundreds of store locations last year as it emerged from bankruptcy reorganization.
http://latimesblogs.latimes.com/entertainmentnewsbuzz/
Quote:
UltraViolet backers get ready to make more noise in 2012



Mon, Jan 9 2012
World's biggest tech show searching for "wow"
Mon, Jan 9 2012

Jan 10 (TheWrap.com) - UltraViolet launched last fall with a murmur, not a roar, but its backers plan to make more noise about the format once hailed as a potential savior to the sagging home entertainment business this year.

Tuesday at CES, backers of the cloud-based platform announced a multi-million dollar awareness campaign and a tentative Amazon deal, while also disclosing the number of accounts that have been activated since its soft launch in the fourth quarter.

Roughly 750,000 UltraViolet accounts have been set up following a modest promotional push. Roughly 20 films have been released in the video anywhere format thus far, with more studios coming on board this year.

To build awareness, the Digital Entertainment Content Ecosystem, the consortium behind the format, said it will partner with the Digital Entertainment Group to create the awareness campaign.

The tagline: "Your movies in the cloud."

In interviews with TheWrap, DECE members said they were enthusiastic about the response among consumers even without heavy marketing.

They believe that UltraViolet is poised to take a big leap in the mainstream, with more retailers, devices and studios ready to come on board in the coming months.

"We see 2012 as being the year when we move from the accomplishments made in 2011 into mass consumer adoption," Mark Teitell, general manager and executive director of the DECE, told TheWrap. "Looking ahead, we're going to have hundreds of titles coming on the market, so we fully expect to see exponential growth."

Teitell said that the number of accounts does not directly correlate with the number of discs sold with UltraViolet. He said more accounts could be set up as disc owners get around to signing up for the cloud-based format in coming months.

The cloud based video-anywhere platform was unveiled just in time for the holidays, but aside from a few mentions in commercials for UltraViolet copies of Blu-rays for such Warner Bros. titles as "Horrible Bosses" and "Green Lantern," it was in essence a soft launch.

Sony and Universal also debuted a handful of titles in the format, but nearly three months after opening, UltraViolet is still not a household word.

Many consumers are still a little hazy on the platform, but in essence it allows users to stream and store movies and TV shows they purchase on multiple devices. The hope is that UltraViolet will tilt the equation back in favor of owning content rather than renting movies and TV programs through Netflix or Redbox.

Although all of the major studios except Disney have backed UltraViolet, it has to move forward without the participation of one massive entertainment provider, Apple and its iTunes store.

To that end, DECE is excited that Amazon has signed an agreement with a major studio that includes granting UltraViolet rights, giving the consortium, an important digital partner. Bill Carr, executive vice president of digital media at Amazon, announced the pact at CES, but did not name the studio or tip his hand about the extent of the online retailer's involvement.

Helping to further compensate for Apple's absence, Samsung is rolling out new features on its Blu-ray players that streamline the process for customers looking to add their discs to the cloud.

Moreover, UltraViolet has taken its first steps toward being global in nature, launching with copies of "Final Destination 5" in the United Kingdom. DECE plans to begin UltraViolet roll-out in Canada in the coming months and other territories in 2012 and 2013.

And an important new studio partner has joined the fray. Paramount has quietly announced that it will launch its first UltraViolet titles, beginning with "Paranormal Activity 3" on November 24, and Fox and Lionsgate are expected to roll out films in the near future.

Though the excitement for UltraViolet is measured, the movie business is likely heartened by the most recent Digital Entertainment Group study that show the smallest slide in home entertainment revenue since 2008.

Though the sector constricted by 2 percent to an estimated $18.04 billion in 2011, there was a 20 percent jump in Blu-ray spending and a 51 percent jump in digital spending. Those two trend lines augur well for UltraViolet and its mission to encourage consumers to keep buying movies for their home libraries -- whether they exist in the digital cloud or in wooden shelf form.


So why not launch with a bigger bang?

Studio executives say that the slow-burning rollout is analogous to Blu-ray, which was launched in 2006 with modest fanfare against the competing HD DVD format. Since then it has grown steadily, if not stratospherically.

"We consciously followed a path to build up an organic and gradual adoption," Teitell said. "We think that as positive word of mouth starts and more studios and more content and more devices come out, we'll start to grow faster. Those things are going to happen as we build more awareness about what UltraViolet does."
http://www.reuters.com/article/2012/01/11/us-utraviolet-idUSTRE80A08S20120111
Quote:
logo_pc_mobile.png

Daniel Frankel Jan 10, 2012 3:56 PM

The Bleeding In The Home Entertainment Business Slowed In 2011


The home-entertainment business has been pummeled in recent years, with revenues falling for seven years in a row, in one year a full 8 percent. But last year, according to the latest numbers from a research group, things brightened slightly, thanks mostly to the rapid growth of digital streaming.

The Digital Entertainment Group, a research consortium backed by Hollywood’s major studios, released data Tuesday showing that overall home entertainment revenue declined only 2 percent in 2011. As shrinkage goes, it was the smallest since 2008 for the challenged entertainment sector, which tallied $18.4 billion in total rentals and sales for the year, according to DEG. That $18.4 billion includes the revenue for everything from DVD and Blu-ray, to cable and satellite VOD, to downloads and streaming, of movie and TV content. Interestingly, in the second half of 2011, the DEG reported that revenue from rentals and sales of “home filmed entertainment,” physical and digital alike, actually rose 1 percent.

Even though the DEG is backed by the studios, its revenue numbers are often cited as official benchmarks of industry performance. According to the DEG, the home entertainment market has declined every year since 2004, when it peaked at $21.8 billion, mainly because of the decline of DVD sales.

One caveat to the latest numbers from the DEG: They were helped by a change in the group’s equation. For the first time, the DEG included revenue from subscription streaming services, which resulted in nearly $994.6 million in additional revenue for 2011.

Overall digital spending for home entertainment – which includes VOD through various carrier services like DirecTV (NYSE: DTV) and Comcast, and electronic sell-through via vendors like Apple’s iTunes – was up 50 percent, according to the trade group, to $3.4 billion.

SEE ALSO: Interview Part 2: Netflix’s Hastings Hurt By Criticism But Over Transition

The kiosk business continued to grow, too, with rentals through outlets like Redbox increasing 31 percent to $1.66 billion. And rentals of Blu-ray and DVD through subscription services like Netflix (NSDQ: NFLX) kept on growing, as well, increasing 4.1 percent to $2.36 billion.

As the studio-backed trade group is prone to do, it touted the performance of high-margin physical media, noting that Blu-ray sales and rentals had increased 20 percent in 2011, reaching $2 billion for the first time.

Still, the market’s legacy revenue streams remain in steep decline. Rental through brick-and-mortar outlets continued to circle the drain, declining 29 percent to just $1.64 billion. And overall sales of “packaged goods” – DVD and Blu-ray – declined 13 percent to $8.9 billion, brought down by the continued cratering of the older format.
http://m.paidcontent.org/article/419-the-bleeding-in-the-home-entertainment-business-slowed-in-2011/

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post #11 of 73 Old 06-11-2012, 01:50 PM - Thread Starter
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Quote:
DEG Numbers Are Good News for Home Entertainment


10 Jan, 2012
By: Thomas K. Arnold

Blurays1.jpg

Consumer home entertainment spending numbers, released Jan. 9 by DEG: The Digital Entertainment Group, should have Hollywood studio executives jumping for joy.

Sure, total consumer spending on home entertainment for 2011 was down about 2% from the previous year, with a surprisingly strong third quarter followed by a disappointing fourth quarter.

And, yes, spending on packaged media — still Hollywood's bread-and-butter — once again declined in the double digits, albeit not as dramatically as in the last two or three years.

But let's take a big-picture view of what happened. For starters, a 2% drop is virtually inconsequential, given the explosion of the app market in 2011 and all those eyeballs caught up in the novelty of playing Zombie Highway or Tiny Towers on their iPhones and iPads.

What's more, the box office value of movies that came to home entertainment in 2011 was off 8.7%, and that's traditionally been a spot-on indicator of how the home entertainment sector will fare.

As for the decline in packaged-media sales, I wish to make two points: First of all, did any of you happen to wander into a Walmart, Target or Best Buy during the holidays? Recent Blu-ray releases were selling for less than $10, while DVDs could be bought for as little as $3. Heck, I'm surprised consumer spending isn't down a lot more, given the record deep-discounting we saw in the last three months of 2011.

Each year we talk about the "race to the bottom," but based on what I saw on my own excursions to retail land in the weeks leading up to Christmas I fear next year we might find retailers giving consumers free discs just for walking through their doors.

Secondly, consumers are firmly in a state of transition. The movie collecting habit, fueled by the novelty of DVD a decade ago, is definitely waning — a product, I believe, of consumers opening their cupboards and seeing stacks of movies still in their original shrinkwrap. DVD triggered a feeding frenzy, and today, consumers, older and wiser, have simply come to realize they don't need to buy every movie that comes out just because they can.

That's why the biggest gains in 2011 were on the rental side, both physical (kiosks) and digital (VOD). Those gains, in fact, prevented the year from being a disaster, faithfully offsetting declines in sellthrough.

So, in a nutshell, consumers are by no means turning their back on bringing movies into the home. In fact, in terms of sheer transactions, I have a hunch the numbers are up, way up, despite apps, iPads and all the other distractions.

It's just the delivery method that's changing, with consumers opting to watch movies instead of also choosing to own them.

The mainstream media, no doubt, will again zero in on the drop in disc sales and proclaim the home entertainment industry to be at death's door. It's what they do.

But we know better. And if you happen to run into any skeptics, pass this column along to them. A little education never hurt.

Related Links :
DEG: Blu-ray, Digital Helped Lift 2011
http://www.homemediamagazine.com/tks-take/deg-numbers-are-good-news-home-entertainment

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post #12 of 73 Old 06-11-2012, 01:50 PM - Thread Starter
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2012 Thread open for discussion.

The end of year articles and final DEG and HMM numbers have been transferred to this thread for ready reference.

The data for the 2012 weeks already reported have been transferred to this thread as well.



I look forward to all of the discussion throughout the year.

Best Wishes of the new year to all of you.


Kosty

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Home Media Magazine has a new feature on their website.

HMM is now posting up the unit numbers each week.

If you click on the pie chart on the HMM website you get a detailed sales report chart that also includes the unit sales figures.

Once you click on the weekly pie chart graphic you now get this detailed sales report which includes the revenue graphic, the box office strength of the weekly new releases, the unit sales for Blu-ray and DVD and the average price comparisons from this week to last years matching week.

At the bottom left corner of the Sales Report you can go back to subsequent weeks. The data is available now back through week ending 12/10/11.



http://www.homemediamagazine.com/market-analysis/sales-report-week-ended-011412

http://www.homemediamagazine.com/market-analysis/sales-report-week-ended-010712

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post #14 of 73 Old 06-11-2012, 01:50 PM - Thread Starter
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Quote:
Originally Posted by h0mi;2292601 
How accurate are the the-numbers.com figures for revenues and unit sales? Particularly for older records?

They have long been the only DVD sales data available and probably have been fairly accurate for DVD sales as the toughest part to estimate Walmart unit sales and revenues from Walmart DVD sales has been stable for many years at about 40% of DVD units and revenues.

In some comments at The-Numbers they have stated about 10% accuracy for revenues and closer than that for units. But they design their databases to be most accurate for long term cumulative sales and they do not adjust the older weekly reporting for better data so sometimes the weekly figures are adjusted to make the cumulative figures more accurate.

Blu-ray is more problematic as it has been a non stable moving target and the Walmart sales for Blu-ray units and revenues has changed dramatically over the years of Blu-ray's existence. My personal feelings is that their cumulative unit figures are fairly accurate 5% to 10% but their estimations of revenues generated for Walmart Blu-ray sales can be much more wild and off especially for major releases that have a lot of volumes. They sometimes have a large adjustment in second week and subsequent week reports to bring into accuracy the cumulative totals because their first week estimates for major titles are somewhat wild.

I've been told that in general terms their unit and revenue estimates for DVD are pretty close or as good as can be expected within say 10% of being true. The Blu-ray cumulative totals for titles over time gain the same or similar accuracy around 10% but sometimes their initial weekly estimates for major large volume Blu-ray releases can be far more wild. I think their estimates for revenues for Blu-ray titles especially if there is a large volume sold at Walmart can have a wild range and margin of error as well for specific weeks. They tend also to place the cumulative totals as being more a priority than individual weekly estimates and often the weekly data is adjusted to bring the cumulative totals into closer to true.

Again they are our only source for individual title revenues and units sold so they are better than nothing and the relationship between the titles seem to be consistent in ratios and magnitudes. even if the overall magnitude is problematic.

For older records for DVD they are probably within 5% to 10% of what really happened.

Blu-ray has only been available since May of last year and units are probably closer than Blu-ray revenues. Blu-ray revenues seem to be always trending quite high for major releases probably because of errors in their methodology in estimating Walmart Blu-ray sales which is the toughest thing for anyone to do.

Like any data source the long term trending and comparisons between titles are always going to be most accurate over time and the most useful use of the database while the raw magnitude of units and revenues are always going to be more problematic especially on comparison with other data sources. The long term trends are always going to be more accurate than any shorter period or individual title magnitudes.

Some here think that their variations and alleged mismatch with HMM weekly revenues and other weekly variations make The-Numbers database useless as a tool. I disagree with that as I understand that the trending and internal comparisons in their consistent methodology make them a useful tool even with limitations and I accept that the magnitudes of the Blu-ray estimates, especially Blu-ray revenues are probably high as a house bias with a wider variance than Blu-ray units or DVD units or revenues.


All of the data sources we have available , including HMM The-Numbers, Rentrak, CEA , NPD and the DEG are all estimates of millions of transactions. All are only estimates and best guesses of a very complicated detailed marketplace with limitations based on models, data availability and time they have to compile the data.

The DEG is considered the best source by the industry as they have the most inputs and the most time to compile the data but its still an estimate after all. One of the things that make the DEG different is that they do revise their data after publication in their yearly data when they have found significant data changes in the historical data sets from the sources they use that include Rentrak Video Essentials.

Having the most accurate historical data is a service to the industry and not some sort of grand conspiracy as some imagine. Its always better to have the most accurate historical data even if it has changed over time and its not like the DEG has not noted the revisions.

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post #15 of 73 Old 06-11-2012, 01:50 PM - Thread Starter
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Quote:
Originally Posted by cakefoo from HDD 
Each tracker has their strengths and weaknesses: DEG for accurate long-term figures, HMM for the best possible accuracy in weekly revenues and now total units, The Numbers for the most accurate source for individual top 20 movies, and so on. The different trackers might not agree with each other 100%, but theoretically each is consistent in tracking methods and therefore they are accurate in a relative sense, just not an absolute one.

Depending on what your talking points are, you can always choose the most relevant data possible. It doesn't make someone a cherrypicker, but it can if they're choosing one over the other out of ignorance of the other data.

On target comment.

Agreed.

They also all agree in the trends over time even if the magnitudes are off a bit between the databases or details in the short term or with specific weeks or individual titles have variations.

The trends are more important and all of them show the same long term trends. All are estimates and show a different piece of the puzzle and have different advantages.

But its always going to be problematic when you try to compare magnitudes or details in any separate databases that are estimates especially in the case where the reporting periods are different like the even week HMM and Nielsen Videoscan and The-Numbers weekly reports that have offset even seven week periods (either Sun-Sat or Mon-Sun) and calendar based even quarterly and annual reports like we get from the DEG.

But when you look at the all together a more comprehensive and detailed picture of the long term trends emerge even if the pieces and parts do not always match in the details or the short term.

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post #16 of 73 Old 06-11-2012, 01:51 PM - Thread Starter
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From another site, but I thought it would be useful for me to post it here as well.

Here's a bit of my perspective on why I tend to be more optimistic and positive and less pessimistic and negative on Blu-ray than some others.

I always try to understand everyone's point of view even when I disagree with it and I'll try to use the words more pessimistic to be more descriptive in the future than routine. But I certainly do not think someone calling me more optimistic or less pessimistic than others here is name calling or inaccurate.

I certainly take a less pessimistic point of view of Blu-ray sales and growth for many reasons and I try to express why I hold that opinion to the best of my abilities.

First off, Blu-ray has long ago exceeded the expectations I and many others had of it during the format war. Virtually all of $100 M plus box office titles now are already in Blu-ray release and thousands more Blu-ray catalog movies will be released from the studio libraries.

Blu-ray has long ago exceeded the expectations I and many others had of it during the format war. Virtually all of $100 M plus box office titles now are already in Blu-ray release and thousands more Blu-ray catalog movies will be released from the studio libraries. Virtually every major studio release now comes on Blu-ray and will be so in the foreseeable future with an ever increasing marketshare.

Even if Blu-ray never reaches DVD's level of success its still going to contribute billions of dollars of profits to retailers and the studios for many years and its a high margin successor to DVD that will still preserve much of the sell through revenue stream for many years.

I do not focus as much as some of you on Blu-ray's inability to fully cover DVD's attrition as I strongly feel that Blu-ray is not expected to by itself make up for DVDs decline as its seen as part of the answer in conjunction with other new digital and cloud based revenue streams.

Blu-ray is still the largest new high margin revenue stream with the exception of EST which is still much smaller in magnitude and both Blu-ray and DVD revenues are still huge even with DVDs decline. Its a important part of studio and retailer revenues.

I also see Blu-ray as doing best in the very important new release segment which is the highest profit source of the home video marketplace. Its not covering DVDs total attrition but much of the DVD decline is in low price point low margin low price point catalog sales that the studios gain less profit from than new releases.

I don't ever expect Blu-ray to ever be what DVD was at its peak nor do retailers or industry people I talk with. But considering the alternative of what would have happened if Blu-ray was not available as a high definition next generation DVD format, where low margin cheap rentals or unlimited subscription streaming would be the same or even greater quality than standard definition DVD.

Many people I know understand that a sustainable and growing Blu-ray revenue stream and growing marketshare that transitioned much of the new release sell through market from DVD to Blu-ray is far better than if Blu-ray had never existed.

Even at levels still below DVD , billions of dollars of Blu-ray revenue and growing marketshare still means success as a consumer product for retailers and the studios. Not to mention availability as a high quality alternative to other cloud based options to consumers.

I think a lot of people here tend to always focus on the negative for Blu-ray instead of seeing it as a consumer success because of constant comparisons to DVD or with what I feel is an unrealistic expectation or standard that Blu-ray alone was meant to replace DVD.

Blu-ray exists in a new world of consumer options for entertainment and multiple yet smaller revenue streams for the studios in the second decade of the 21st century. Cheaper rental options from Netflix and Redbox and cloud based options like Hulu Vudu etc are here and cannot be undone.

That's a different world than when DVD was at its peak.

I see those things realistically and I and others realize that Blu-ray will never be like DVD so to see others constantly dwell on the fact that Blu-ray is failing to make up for DVD's attrition by itself seems unnecessarily negative or pessimistic to me as I feel that at least now now one expects Blu-ray to ever do that by itself.

Perhaps as the years have gone by and the market and economic and technological conditions have changed, the expectations for Blu-ray have evolved throughout the years, but Blu-ray is and can certainly be seen by many, including myself as a success and a high quality alternative that will be an important part of the studio and retailer home video market for many years to come.

Blu-ray is a high margin highly profitable consumer product category that continues to grow in revenues and marketshare and is at a level that is still huge by normal retail standards of a consumer good, even if its smaller than DVD. Most consumer products are low margin and are much smaller than DVD or even Blu-ray's current size. Blu-ray does not have to be at DVDs level to be considered to be a success.

Sure, I'm a lot more optimistic than some here and I tend to post more on the positive side of things. Others that are more pessimistic than me tend to cover the more negative side of things pretty well without my help. But neither viewpoint is complete by itself and its not healthy to focus on one side or the other all the time.

Throughout the years, I have never felt shy of pointing out when I disagree with others but I always have strived to explain my point of view and why I disagree to the best of my ability and I will continue to do so in the future.

Again thanks you all for consideration of my point of view.

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post #17 of 73 Old 06-11-2012, 01:51 PM - Thread Starter
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Quote:
Originally Posted by cakefoo;2295378 
Yeah. It could be new Blu-ray owners, or it could be TN were overestimating DVD sales a year ago. But I will give them the benefit of the doubt until proven otherwise. The only thing I look at The Numbers for is the #1 Blu-ray title's DVD unit sales anyway. And if The Numbers' tracking periods haven't changed, then it should still work fine. There would be a slight variable since the HMM index periods are a day less, but I don't see why one day would knock indexes out of proportion enough to invalidate the whole table.

I trust the The-Numbers unit data far more than I do the revenue data and I trust their cumulative totals more than any weekly data especially for Blu-ray. I also have more faith in their longer term DVD data which they have used the same established methodology for many years now since 2006. Even if its off in magnitude, its off by the same house bias in year to year comparisons within the same database and the trends would still be accurate and the relative comparative magnitudes between the years the same.

That being said their DVD data has been done the same way since 2006 probably can be assumed to be internally consistent. The unit numbers for DVD should also be more accurate for DVD than Blu-ray as its a lot simpler to estimate the long term stable percentage for Walmart for DVD than it was before last fall for Blu-ray.

In any case, they are estimates anyway and even if they are off last year as much as some may claim they still are order of magnitude correct by title and in the aggregate in scale.

Its a lot simpler to estimate units than revenues because retailers can change prices locally and nationally at short notice and other checks such as units shipped or observed in inventory.

We also can see now that their Blu-ray unit estimates track with the calculation made from either estimating the individual title Blu-ray unit share to their DVD unit estimates or by extending the Blu-ray index numbers from Nielsen Videoscan down from the estimate for the leading Blu-ray title (found by either seeing their Blu-ray #1 title estimate or using their DVD #1 title estimate and calculating an estimate for the #1 Blu-ray title by using the Nielsen Videoscan marketshare).

The Nielsen Videoscan Blu-ray marketshare is probably closer since the later half of last year than it was earlier as Walmart's Blu-ray share and unit sales has risen over time, but the previous year's calculation should only be off a 5% - 10% for all genres and closer for Blu-ray favorable genres even for last year.
Quote:
Originally Posted by cakefoo;2295378 
Yeah. It could be new Blu-ray owners, or it could be TN were overestimating DVD sales a year ago. But I will give them the benefit of the doubt until proven otherwise. The only thing I look at The Numbers for is the #1 Blu-ray title's DVD unit sales anyway. And if The Numbers' tracking periods haven't changed, then it should still work fine. There would be a slight variable since the HMM index periods are a day less, but I don't see why one day would knock indexes out of proportion enough to invalidate the whole table.

The-Numbers was probably not overestimating DVD sales from last year, or at least not apples to apples in the calculation but last year's Nielsen Videoscan first alert Blu-ray unit marketshares were still probably biased high in favor of DVD as last year Walmart's Blu-ray share was lower that its DVD share.

This year its much closer and will continue to be until the second half of the year when Walmart Blu-ray sales increased to get closer to its routine historical rate of 40% of DVD sales.

The HMM Index numbers are not a day less, they are based on the Nielsen Videoscan first alert report which is the same Monday through Sunday range as the The-Numbers weekly report. Its only the revenue numbers (and now the cumulative unit numbers for the same period) that is off a day by being Sunday through Saturday.

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post #18 of 73 Old 06-11-2012, 01:51 PM - Thread Starter
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Quote:
Era of Rental Windows Has Arisen


8 Feb, 2012
By: Thomas K. Arnold


A few years ago, a wise studio executive — the home entertainment unit president of one of the six majors — told me that the industry is heading “to the point where one day, it will be all about windows.”

I think we’ve arrived.

The announcement by Walt Disney Studios CEO Bob Iger plans to impose a 28-day rental delay on new-release disc titles means four out of the six majors are holding back new releases from Netflix and Redbox, the top two rental outlets, in a concerted move to prop up the sellthrough market.

Given past experience, I highly doubt the two holdouts, Sony Pictures and Paramount, will hold out much longer. Sony already delays certain releases.

The strategy underscores the importance of windows and lends credence to the old saying, “timing is everything.”

Formats don’t matter nearly as much as when a movie becomes available on that format. Blu-ray Disc, DVD, download, streaming, VOD, iTunes, UltraViolet — the competition is no longer among formats, but, rather, maximizing the potential of each format through staggered release dates and, when the dust settles, hopefully create a roadmap certain types of movies will follow when their theatrical runs are over.

Redbox and Netflix will likely always be at the proverbial bottom of the barrel when it comes to getting new releases. Vending machines and subscriptions may be a gold mine, but not for the studios.


For Hollywood, the real money lies in getting a share of the spoils from each sale — be it direct dollars, say from each Blu-ray Disc or DVD they sell to Walmart, Best Buy or Target, or lump-sum payments through licensing content for digital distribution.

First Sale is well and good, but the retailers get the prize — which is why studios have never cared for the rental model, not when it was brick-and-mortar nor now when it’s done over the mail or through kiosks. They’re not in control, and when you’re not in control. you’re not sitting in the locomotive of the money train.


Fortunately for the studios, there are all sorts of other distribution mechanisms either available now or in the pipeline, in addition to the good old packaged-media standbys of DVD and Blu-ray Disc.

And if it’s all about windows, there’s nothing Hollywood would like more than to shut the window for good on rental.
http://www.homemediamagazine.com/tks-take/era-rental-windows-has-arisen

Here's a thought that some of the decline in DVD sales is the loss of sales of family related DVD sales as kids have more free entertainment options available to them in recent years.

Quote:
Are Apps the Bane of Kidvid?


15 Feb, 2012
By: Thomas K. Arnold


I feel vindicated. For quite some time I have been maintaining that one reason home entertainment disc sales are slumping is because of iPhone-mania and the preponderance of free apps. Pre-teens, traditionally among the biggest consumers of entertainment, are playing Angry Birds or Tiny Towers instead of watching the latest animated feature on DVD or Blu-ray Disc.

Last October, DreamWorks Animation, which derives more than 50% of its revenue from home entertainment sector, reported a 51% decline in profits.

And my hunch, at the time, was that the iPhone and its larger cousin, the iPad — along with other smartphones and, of course, the iPod Touch — are the culprits.


So now along comes THQ, the venerable video game developer responsible for such hits as Saints Row and Warhammer 40,000, which has just reported dismal financials. The company’s loss mushroomed to $55.9 million in the quarter that ended Dec. 31, 2011, from $14.9 million in the year-ago quarter. Its stock is in danger of being delisted. CEO Brian Farrell is taking a 50% pay cut and, in the latest development, THQ is shutting down its entire Japanese operations.

THQ attributes its woes to a botched attempt to broaden its base from hardcore gamers to the pre-teen set, a move highlighted by the launch of the uDraw Game Tablet and several licensing deals for children’s properties. “Our confidence was misplaced," Farrell said earlier this month, noting that not only is THQ killing the tablet, but it also is pulling out of the entire children’s game business. THQ said it recently ended negotiations with two licensors and is working out agreements with two more to spin off some titles.

One of the primary reasons for the pullout, Farrell said in a conference call earlier this month with analysts to discuss the latest financial results, is that the i-stable of products has taken the kids market by storm in the past year, “since kids can get thousands of apps for free or at low costs.”

If free apps could topple THQ, one of the most successful video game developers of all time, it’s easy to see the danger to our industry, particularly the children’s market, which remains the cornerstone of today’s sellthrough business.

The $64,000 question: Are iPhones and apps just another novelty that kids will eventually tire of, so that they’ll come back to home video? Or are they going, going, gone … for good?

http://www.homemediamagazine.com/tks-take/are-apps-bane-kidvid

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post #19 of 73 Old 06-11-2012, 01:51 PM - Thread Starter
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Overall format revenues are not the only story for the studios and retailers


Well we all have to realize that the metrics that we have access to in our discussions are really quite broad and expansive and are related mostly to revenues and not margins or profits.

Revenues do not equal profits.

Even if revenues or profits or units are lower in a consumer product category the category as a whole can still be hugely profitable even if its smaller than in years past.

Lower overall revenues for OD packaged media sales can be concentrated in the lower margin less profitable segments. In this case, much of the OD decline since 2007 is from the lower revenues generated from older aging DVD catalog sales which is a result of lower retailer driven price points more so than volumes. Even with catalog sales for DVD since we still see those skus at retail, we know its still a profitable retail category even at those lower price points.

DVD and Blu-ray as physical products are software and as software the cost in inherent in the intellectual property and not the physical production of the product. Pricing is market driven not production cost driven. As mass market software with many billions of dollars of annual consumer revenue, its still far more profitable than most consumer goods as a product category. Both DVD and Blu-ray will stay at retail as long as they are profitable to retailers and the studios even as revenues or margins decline over time.

Gross indicators like format weekly, quarterly or annual revenues are not the entire story on the profitability of a consumer good like DVD or Blu-ray. We only have part of the story with those metrics.

Factors like the exchange of higher margin skus like Blu-ray, BD+DVD+UV combos for plain DVD skus at lower price points may increase margins and profits for the same amount of units sold. Lesser amounts of Blu-ray or premium BD+DVD combo units sold could generate more profits overall than the same amount of lower priced DVD units iff the price premium per consumer unit sold exceeded the additional production cost, which it does.

Retailer reductions in consumer price points are controlled by retailers for general price declines or occasional sales or loss leader pricing. Even if lower decline in price points lead to lower DVD revenues or a slow down in the growth of Blu-ray revenues compared to unit sales, that may effect retailer more than studios if wholesale prices are less effected.

New releases are the most profitable packaged media segment. Higher Blu-ray margins mean more profits per unit sold than lower priced DVD unit sales, so Blu-ray units sold for new releases partially offset some overall unit declines. Some degree of less units sold at higher margin helps.

Extension and some degree of sustainment of the higher margin new release revenue stream to an new generation of users for high definition next generation DVD Blu-ray is better than just letting DVD attrit by itself. Any level of Blu-ray new release sales extends that new release model for some time.

Any level of Blu-ray catalog sales for additional resale of the studio library, even at lower levels than first hoped for, is additional found revenues for the studios from their library assets. Lower prices for Blu-ray catalog is still a good deal for consumers even if it studios gain less.

Blu-ray revenues for both catalog or even new release does not have to match DVD's unique levels of magnitude to be both successful and sustainable for the longer term.

Since 4Q 2010 retail price reductions for Blu-ray units sold at retail changed the equation between unit growth and overall revenue growth. Unit growth is more of a useful metric for understanding growth in consumer demand over time. For the 2011 over 2010 YoY growth period the 4Q 2010 price reductions meant that unit growth for the Q1-Q3 2011 period was moderated and muted somewhat it the translation into revenue growth. The amount of unit growth for Blu-ray sales for most of 2011 translated into less YoY revenue growth until about mid September. That affected the 2011 over 2011 overall YoY growth metric for Blu-ray. But that was also more of an impact on retailer margins than studio margins as retailers reduced prices for market conditions more than the wholesale prices were reduced which reflected studio margins and profits. Since last fall that factor has aged out and as long as Blu-ray retailer price points decline less, YoY Blu-ray unit sales gains will more effectively translate into revenue gains as well.

As Blu-ray becomes more mature and volumes sold increase and replication capacity and yields increase normally over time, Blu-ray skus cost less to produce. Lower production costs for Blu-ray offset to some degree lower retail and wholesale pricing.

Studios like Disney see higher household penetration of Blu-ray players steadily increase over time and effect growing marketshare for Blu-ray in all genres. Selling higher margin Blu-ray skus instead of lower margin DVD skus is a good thing for the studios and their retailer partners.

Studios and the BDA see things like increased retailer support for Blu-ray and displacement of lower margin DVD skus with higher margin Blu-ray and BD+DVD combos in the retail space. Both in higher sales percentages for Blu-ray marketshare for evergreen titles and for new release shipments and initial sales. Increase in combo sales that replace DVD only inventory for post new release time frames for residual inventory help both the retailers and studios in inventory management by sku reduction but also still serve legacy DVD owner and new Blu-ray owners needs over time.


Those are just some of the considerations that retailers and studios like Disney are aware of that may give the industry more optimistic feelings about Blu-ray that just looking at the raw gross top line metric of Blu-ray annual revenue rate of growth or the decline in DVD and OD sales at first glance may suggest.

Finally, even if Blu-ray's growth is not as fast as hoped or DVD's decline was faster than anticipated its still a huge and highly profitable high margin revenue stream that the studios and retailers (who benefit less from digital cloud based options or rental alternatives) want to preserve for as long as possible.

Plus as a home theater enthusiast, movie lover and consumer I like having Blu-ray as a high quality alternative for as long as possible and many people in the industry are enthusiasts, movie lovers and consumers too.

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post #20 of 73 Old 06-11-2012, 01:52 PM - Thread Starter
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Quote:
Originally Posted by R Harkness;21719020 
Kosty,

I don't know why I continue to be fascinated with this, years after the HD-wars are gone, but it IS fascinating reading. Please keep up the great work. You have an appreciative audience!
Quote:
Originally Posted by melcitron;21719300 
thanks!

I find it interesting as hell.

I feel I had a great privilege to meet studio and consumer electronic company executives and other trade and industry folks during the format war years and have keep up many of those contacts to this day. So I feel a bit of responsibility to keep up the story updates over time.

Having a marketing advertising and business background and being a home theater enthusiast and movie lover and consumer seeing this evolve over time as a business story for Blu-ray with a consumer product I love and enjoy is still neat.

I like talking about this stuff.

I like keeping track about this stuff as a hobby as well.

A lot of what I do with the sales statistics and charts and graphs I do all the time on other much more boring stuff, so its a joy to do it on something I enjoy than something i have to do.

For me, seeing Blu-ray mature and reach success after seeing it and HD DVD from the ground up and trivial level of sales back in 2006 is like watching something you cared about grow up and become successful over time. Its still fun.

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Blu-ray is doing best with new releases where the more concentrated profits and highest margins are. Much of the top line DVD and OD revenue decline is in the lowest margin catalog DVD sales segment. That's why the studios and retailers are in no hurry to abandon DVD and want to encourage Blu-ray usage for as long as possible as even in decline packaged media sales still are huge and profitable.

But of course overall revenue decline is still a concern as revenue streams like cheap rentals are nowhere near as profitable to the studios.

New release physical sell through is the most lucrative margins besides EST at high price points which has far lesser volumes.

In general, Blu-ray 3D+DVD+UV combos have the highest margins of any physical home video product beside lower volume collector editions, then BD+UV combos, then Blu-ray new releases, DVD collector editions, DVD new releases, Blu-ray catalog titles, then older DVD releases.

=================
EDIT:

The highest margins of all home video skus are in the limited edition collectors editions for Blu-ray and then DVD. But those are relatively limited runs and gross revenues. Multiple movie box sets and TV on Blu-ray and DVD box sets are also very high margin. All of those are pretty much subsets of the categories above in more general terms.
================

EST prices generally have been in the past so high that they have had low much lower volumes than physical sell through and the studios need to adjust that for greater volumes along with selecting price points for UV.

Blu-ray has been most successful in new releases where the highest margins for physical sell through remain along with the largest volumes on a per title basis. Blu-ray's success with new releases and its increasing marketshare has also resulted in a steady improvement over the past two years in the average disc cost sold for new releases to have actually increased since 4Q 2010. Consumers still buying new releases have increasingly migrated from plain DVD new release skus to more expensive and more profitable Blu-ray+DVD+DC combos and have not seemed to have discouraged by the average $5-$7 higher retail price points for the combos.

Increasingly over the past year more and more consumers buying new or recent releases have started buying the even more premium priced Blu-ray 3D combos at even greater retail price and higher margins as well.

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SKU-ed Perspective - Studio and Retailer Reasons for Multiple Disc Versions of Titles

Quote:

SKU-ed Perspective

9 Mar, 2012
By: Chris Tribbey, John Latchem

PussSKUs.jpg
Paramount/DreamWorks’ Puss in Boots had several unique DVD and Blu-ray configurations, including three exclusive to Walmart.

There are more choices than ever for consumers to watch their favorite home entertainment content.

Two or three versions of a movie stare back at customers at their local Best Buy or Target or Walmart, as studios try numerous configurations. Today you can find titles released as DVD only, Blu-ray only, Blu-ray/UltraViolet, Blu-ray/iTunes combo pack, Blu-ray/DVD/iTunes combo pack, 3D/Blu-ray/DVD/iTunes combo pack, with release configurations differing from studio to studio.

The industry lingo for each different version is SKU, an acronym for “Stock Keeping Unit.” For studios, offering more SKUs for a title is about packing more value into disc releases.

Tom Adams, principal analyst and director of U.S. media for IHS, said the studios’ move to multiple SKUs is meant to prolong the life of disc, the most lucrative part of their business. Sticking with simple Blu-ray- or DVD-only SKUs likely would require drastic price cuts, he said.

“It’s probably prudent to support higher prices with more value in the box until consumer spending overall recovers,” Adams said.
Quote:
WHAT is a SKU?
SKU: Stock Keeping Unit — a code used to identify each unique product or item for sale in a store or other business

It was Walt Disney Studios Home Entertainment that pioneered the Blu-ray/DVD combo pack with the October 2008 release of Sleeping Beauty. It wasn’t long before every studio caught on: Packaging a DVD with Blu-ray helped push consumer adoption of high-def and offered more options for consumers to watch content.

“The combo pack initiative has been very successful for Disney and has proved to be extremely popular with consumers,” said Lori MacPherson, EVP of global product management for Walt Disney Studios. She said Disney combo packs accounted for 30% of all North American combo pack sales in the industry in 2011.

“The various packaging configurations offer incredible value and utility and enable purchasers to future-proof their collections as well as introduce them to Blu-ray,” she said.

“It’s really about offering consumers the highest value for their purchase,” Robert Read, SVP of worldwide high-def marketing for Universal Studios Home Entertainment, said about the various configurations his studio offers. “Our combo packs offer consumers the ultimate choice and convenience in viewing their favorite movies anywhere, anytime on an array of devices, making it a natural fit for any lifestyle.”

Scott Hettrick, publisher and editor-in-chief of 3DHollywood.net, said that the studios are releasing more variations to simply give customers what they want.

“Studios must provide content on as many different formats as possible in order to reach a collective mass audience,” he said.
Quote:
The studios have attempted a number of strategies. Most notable among the different strategies:


Staggered releases for different SKUs: Disney was the first major studio to push separate Blu-ray and DVD release dates, starting with catalog titles such as Snow White and the Seven Dwarfs. The studio released a Blu-ray/DVD combo pack, sometimes with digital copy, and slated a DVD-only version for release about a month or two later. The first new theatrical released this way came with Pirates of the Caribbean: On Stranger Tides. Paramount Home Media Distribution used this strategy for Paranormal Activity 3.

Blu-ray/DVD combo, no DVD-only SKU: Another strategy being more frequently adopted, especially for indie and foreign fare, is releasing the title only as a Blu-ray/DVD combo pack, with no separate DVD-only release. Sony Pictures Home Entertainment has used this SKU the most (Incendies, Of Gods and Men, Higher Ground, Restless), and Fox also has released a few titles this way (Another Earth).
Blu-ray/digital copy combo packs, no DVD: Some studios, most notably Fox, offer Blu-ray/digital combo packs with no DVD.

Digital copy: Digital copy distribution often varies from studio to studio. Some titles will include a separate disc containing just the digital copy. Some include the digital copy on the DVD disc of the movie, and some offer the digital copy as a download.

UltraViolet: The cloud-based storage format removes the need for a separate disc, but as with digital copy, there is still a slip of paper with a code included in the package. Disney has yet to sign on to UltraViolet and offers traditional digital copy downloads (such as iTunes), but often has separate Blu-ray/DVD and Blu-ray/DVD/digital combo packs, with the digital copy pack about $5 more. Warner and Sony offer all their digital copies through UltraViolet now. Universal and Paramount offer both UltraViolet and downloadable digital copies using the same access code. Fox is an UltraViolet member but has yet to release any discs with UV access.

3D: When studios decide to release 3D versions of movies on Blu-ray, they tend to come in full combo packs containing at least three discs (3D Blu-ray, regular Blu-ray and DVD), or more if there is a bonus disc or a disc for a digital copy.
Among the major studios, only Sony Pictures typically releases the 3D disc as a standalone purchase.

Disney, for its 3D releases of the “Toy Story” films, released each film separately as a full combo pack, but the boxed set of the 3D trilogy contained only the 3D discs for each film, in case those who already purchased the non-3D combo packs just wanted a simple upgrade.

Sometimes, as with Disney’s Pirates of the Caribbean: On Stranger Tides and Cars 2, the 3D combo pack offered exclusive bonus content the regular combo pack didn’t.

Though many new-release titles today have multiple SKUs, not every SKU is available at all retailers. Some don’t stock 3D versions in stores. Some don’t stock the Blu-ray-only version. Walmart tends to be the most consistent in offering Blu-ray-only versions, but often doesn’t have the 3D version. Target sometimes has the 3D version. Best Buy may or may not have a Blu-ray only version. And stores often will have exclusive versions of some titles, offering different extras or packed-on souvenirs, to create completely different SKUs.

“We know who our consumers are on a title-by-title basis and retailers know who their customers are on a store-by-store basis,” Disney’s MacPherson said. “The resulting mix of packaging configurations represents the best products for the core customers of that particular store. It’s more evidence of us giving them what they want, how they want it.”

Ted Engen, founder of the Video Buyers Group, a consortium of independent video stores, said the combo packs may present a challenge to some retailers of what to stock, but better too many choices than not enough.

“In a lot of retailers’ opinions the combos helped start the momentum for Blu-ray, and all the combinations make perfect sense,” he said. “Consumers don’t want to buy a Blu-ray and a DVD for something separately. With the combo pack your Blu-ray plays in the living room, and the DVD plays everywhere else.”

But Russ Crupnick, SVP of media analysis for The NPD Group, isn’t convinced all these options are a positive, especially being so inconsistent from studio to studio.

“I think you have to put yourself into a shopper’s shoes, standing at a display at Walmart, or online at Amazon,” he said. “It’s just tough sorting through all these different SKU variants, which no doubt will have different prices. You really have to be an educated consumer to absorb it all, especially if each studio adds variants of some sort. And then think about the retailer: seems like a logistics challenge from a purchasing and shelving perspective.”

Bill Hunt, editor of TheDigitalBits.com, said giving consumers options is a good thing, but “you just can’t make everyone happy.”

“The problem is that not all retailers stock all versions, so the risk is that someone goes to Target and wants just the Blu-ray and ends up having to pay more for the title because it’s a combo pack — or worse, doesn’t buy it at all,” he said.

Still, there probably are consumers who have purchased a combo and ended up trying high-def because of it, he noted. But with the “really savvy, experienced fans,” all the different SKUs may be an annoyance.

“When you’ve got a movie fan who’s already purchased a title two or three times on different formats, they know what they want and they know what truly gives them value and what doesn’t,” he said.

And then there’s the replication side of the equation. More SKUs means more responsibilities for the major replicators. Disney’s MacPherson said that simply requires more advance planning.

Kevin Sullivan, VP of business development at Technicolor, which handles replication for several studios, said his company has invested heavily in both replication capacity and packaging capabilities.

“As such, we have been able to handle the increased combo-pack business without any meaningful strain on our resources,” he said.
http://www.homemediamagazine.com/studios/sku-ed-perspective-26642




ON POTC4 sales/B]
Warning: Spoiler! (Click to show)
The following is a couple posts on the impact that the DVD only delay had on POTC 4 sales. There was speculation that the strategy of DVD only delay and selling only Blu-ray+DVD only combos was unwise for Disney for that day and date release. I'm not sure the best available data we have on unit sales and revenues for that title supports that conclusion.

I think any possible losses due to the DVD only delay of POTC4 are more limited than some had surmised.

Earlier this year I was told that there was several ways that could be used to judge the relative impact of the DVD delay of Pirates of the Caribbean: On Stranger Tides and that the impact was probably minor in units and even closer in revenues and probably was justified by the promotional benefit to Blu-ray that occurred by that strategy. We will probably confirm that if Disney does the same thing for a major release again this fall.

I'll try to explain what I mean and see if it makes sense to you guys.

First off we knew that Blu-ray marketshare of Pirates of the Caribbean: On Stranger Tides was 58.49% for Black Friday week ending 11/28/11 a high volume sales week when both versions were available. That week would also be expected to have a higher DVD share than at release if there was a hypothetical DVD only version concurrent with the BD+DVD or DVD+BD style case combo skus. That's in line with similar action adventure type titles so at the most for the DVD only share at risk we are only talking less than half of all OD sales for that title and probably less than the units intended for Blu-ray only or first use that would have bought the combo or Blu-ray only version anyway.

The year before Beauty and the Beast combos had a 45:55 split for Blu-ray style cases and DVD style cases. I was not able to get the sku split for POTC 4 that I got from Beauty and the Beast for its release a year before but its likely that its around the same magnitude a year later.

So its fairly reasonable to think that somewhere between 40-55% of the combo skus were in the DVD style cases. At CES I was told that the POTC 4 sales were roughly a 50:50 sales split and that syncs with my anecdotal retail observations at the time.

Also at the time it seemed that the POTC 4 sales were about normal in relationship to the shipped and pre packed inventory as there were no reports of excess inventory being sent back and the inventory sent to retail seemed to have normal depletion rates for a new release. So its pretty probable that Disney sold about as many units on the BD+DVD and DVD+BD style cases as they expected to do at the time.

So if the two combo versions of POTC 4 sold roughly 3.2 million units then roughly half were bought by DVD owners that if the DVD only version was sold would have bought the DVD only version instead at a lower price point.

So that's around 1.6 million units of the combo sku filling DVD households needs in the combo sales alone. Add in the roughly 1 million subsequent DVD only sales of POTC 4 then you get around 2.6 million sales to DVD users, with 60% of those sales being higher priced higher margin combos. There were only 8 titles that TN reported having over 3 milion DVD unit sales in 2011 as well, so the possible lost sales for POTC 4 DVD units has a ceiling in 2011.

Transformers: Dark of the Moon with a much higher $352 M box office and similar genre only did 2,628,787 DVD units in 2011 as reported by TN. That seems roughly comparable to POTC 4 in performance if we allocate some of the BD+DVD combo sales to DVD users. POTC 4 in 2012 on DVD was just not going to perform like POTC3 did in 2007 under any circumstance but the DVD sales seem to be pretty much in line with its peers.

POTC 4 was released in both DVD style cases and Blu-ray style cases at the time of release and the DVD case version was aimed at DVD only households and was placed in the DVD sections at point of sale brick and mortar locations and the isle display prepacks were just the same for someone wanting a DVD version as with other major releases The only difference was a Blu-ray Disc was a bonus in the DVD package and may have cost more at retail. But the POTC 4 combos were not that much higher than a typical Disney major new release.

A DVD version then of POTC 4 was in effect available at the time of release with the idea that it also included a bonus Blu-ray in the package. Many DVD only customers bought the DVD style case version at the time of the release. A million more bought the lessor priced DVD only sku a month later.

The only argument that can be made that the delay of the DVD only version of POTC 4 caused a huge loss in units sold seems to be in the pessimistic assumption that many DVD only consumers balked at paying the higher price for the DVD style case DVD+BD combo sku as a new release and later never bought the cheaper DVD only version. But most consumers at the time never knew that a cheaper DVD only version was scheduled for release. They only saw what was displayed at retail. Besides the fact that retailers set the final prices at retail.

Then to have affected the cumulative DVD total sales they hypothetically were so upset that the combo was somehow costing more than it should at retail because it had a Blu-ray Disc in it that they would not by a new release they wanted and just boycotted buying the combo version.

Then they were still so upset that they failed to join the million other consumers that a month after the combo release came out they still boycotted buying the cheaper DVD only sku during the height of the holiday season.

That seems unlikely.

Plus there is the factor that any DVD only consumer that did but the more expensive combo packs on their release date generated some extra revenues and profits than they would have done by buying a DVD only version at that time. Then you have to add in the promotional aspect of placing more Blu-ray Discs in households just before the peak holiday sales season.

You just cannot compare POTC4 to POTC3 five years before, that's illogical. You have to compare the DVD sales or Blu-ray and DVD sales or combo sales to other similar performing titles in the context of typical sales in 2011. When you do that you can see that any possible loss of DVD sales that Disney may have had with the DVD only delay strategy for POTC4 is much more limited and it probably was not the "disaster" that some here assume.

I do not think that there were any industry reports or press reports or analyst reports or Disney financial calls that mentioned any poor results from that DVD delay of Pirates of the Caribbean: On Stranger Tides at all. The only mention I have ever seen of that is among the fellas that talk about it here.

Even if the DVD only sales of POTC 4 were depressed and not made made up in the subsequent 28 days later DVD only release, I think the possible range of any lost sales is much less than some of the assumptions that have been made here would seem to suggest.

Some of you will obviously still disagree with my logic and reasoning here but at least I tried and hopefully gave you something to think about.


1zqwzcx.jpg

Another way of looking at it.
Code:
[B]Transformers: Dark of the Moon[/B] (WE 10/02/11) 
($352 M box office)

Units    Format  Revenue 

3,264,720 Blu-ray  $68,842,164
[U]2,748,684 DVD      $46,731,930 [/U]
6,013,404 Total   $115,574,094


[B]Pirates of the Caribbean: On Stranger Tides[/B] (WE 11/20/11)   
($241 M box office)

Units    Format  Revenue         

3,200,915 Blu-ray  $83,464,826 (BD+DVD combos counted as Blu-ray)
[U]1,105,620 DVD      $19,145,780[/U]
4,306,535 Total   $102,610,606


Here is the latest information on the Blu-ray and DVD sales from The-Numbers of these two comparable titles from 2011.

It seems that although POTC 4 had a lot less box office power $241 M vs $352 M box office for Transformers DOTM (-32% less BO) the reported revenues were much closer (-11.5%).

That's because the Blu-ray revenues and units for POTC4 were much higher because of the higher unit percentage and revenues generated by the BD+DVD and DVD+BD combos counted as Blu-ray sales for POTC 4.

With $111 M less box office power its reported that POTC 4 did only $13 M less revenues in total than Transformers DOTM moon did in the period.

That hardly seems like a "disaster" then at all.

It seems that the higher price points and unit volumes of the combos for POTC4 made up for a lot more of DVD only sales at lessor price points for Transformers DOTM.

Some difference is the seasonality of the release dates WE 11/20/11 vs WE 10/02/11 but both were 4Q releases with similar genres.

It seems that the higher revenues from the BD+DVD combos made up for less DVD units sold and allowed POTC 4 to generate more revenues in comparison to its box office performance.


Even if you disagree with The-Numbers data in magnitude, for comparisons with these two titles its apples to apples with the same methodology.
Code:
POTC 4

Units   Rev          

74.3%   81.3%   BD
25.7%   18.7%   DVD
        
        

Transformers DOTM

Units   Rev         

54.3%   59.6%  BD
45.7%   40.4%  DVD


labels corrected

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post #23 of 73 Old 06-11-2012, 01:53 PM - Thread Starter
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Some bullish comments on physical media from a Fox executive.

Quote:
“Obviously it’s popular to talk about the ‘decline of physical media’ but even with the last four years of recession which have put a dent in the purchase model where maybe units did decline on DVD faster than perhaps Blu-ray could have compensated for,”

“[However] particularly in the US starting mid year 2011 the market began to stabilise and what you’re now beginning to see in the start of 2012 is growth in the physical market”
Quote:
Blu-ray 'not remotely' dead says 20th Century Fox top Exec

Updated 17:34 28 Mar 2012 by Thomas Tamblyn

In Danny Kaye's eyes the 'perfect storm' of 2011 is over for Blu-ray and physical media, with the market levelling out he believes the future is bright for the format

According to Twentieth Century Fox Executive Vice President of Global Research & Technology Danny Kaye, Blu-ray and other physical media has a long way to go before it’s written off by the likes of Netflix and LOVEFiLM Instant.


Despite the growth of these services Kaye is confident that physical media is still one of the best routes to go for arguing that the fluid nature of the internet means governance over content is much lower.

“We can govern the quality of Blu-ray, we can govern the quality of DVD for example, but even Netflix or say LOVEFiLM for example, can’t govern the quality of their service delivery because it then depends on someone else [Internet Service Provider]”

Talking about the dip in physical media Kaye points out that there were a culmination of factors to blame, most prominent of which included the boom of streaming services.

“It was the perfect storm you know right? When the recession started perhaps it hit harder and earlier in the US and then started spreading elsewhere.”

“It was the same time that you had a number of alternative channels of distribution begin to evolve and the consumer said, ‘Wow that’s pretty convenient, they’re cheaper, in some cases they’re really convenient and that’s the way I’m going to go.’”

Despite these more 'convenient' alternatives Kaye believes strongly that any such dip in physical media was a natural reaction and has since ended, he further backs this up with the news that for Fox physical media is still growing.

“Obviously it’s popular to talk about the ‘decline of physical media’ but even with the last four years of recession which have put a dent in the purchase model where maybe units did decline on DVD faster than perhaps Blu-ray could have compensated for,”

“[However] particularly in the US starting mid year 2011 the market began to stabilise and what you’re now beginning to see in the start of 2012 is growth in the physical market”

http://www.t3.com/news/blu-ray-and-dvd-not-remotely-dead-says-20th-century-fox-vp-danny-kaye
Quote:
Blu-ray not dead, says Twentieth Century Fox executive

Published Thursday, Mar 29 2012, 12:48pm EDT | By Mark Langshaw | 30 comments


Twentieth Century Fox's executive vice president of global research & technology has said that Blu-ray and physical media will not be phased out by digital any time soon.

Danny Kaye told T3 that services such as Netflix and LOVEFiLM cannot guarantee the same level of viewing quality as Blu-ray.

"We can govern the quality of Blu-ray, we can govern the quality of DVD for example, but even Netflix or say LOVEFiLM for example, can't govern the quality of their service delivery because it then depends on someone else [Internet Service Provider]," he said.

However, Kaye did attribute the downturn of physical media sales to the growing popularity of streaming services, among other factors.

"It was the perfect storm you know, right? When the recession started perhaps it hit harder and earlier in the US and then started spreading elsewhere," he added.

"It was the same time that you had a number of alternative channels of distribution begin to evolve and the consumer said, 'Wow that's pretty convenient, they're cheaper, in some cases they're really convenient and that's the way I'm going to go'."

The executive pointed out that Fox's physical sales began to pick up around mid-2011, and predicted that there will be "growth" in the sector during 2012.
http://www.digitalspy.com/tech/news/a373908/blu-ray-not-dead-says-twentieth-century-fox-executive.html

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post #24 of 73 Old 06-11-2012, 01:53 PM - Thread Starter
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Blu-ray stats update availability now available on Twitter


As a experiment I'm now putting up on Twitter when I'm updating the Blu-ray stats and major articles.

full_logo_blue.pngfollow me @KostyBluray

I'll tweet when a new set of charts are available as an example. If you follow me you'll know when to check in the forum to see them.

It started up as a joke with Towergrove, but a few of my industry lurkers emailed me and said they actually would appreciate it as well. Plus for some other personal and professional reasons I want to practice Twitter as well. Throughout the years, I started and have continued posting daily not only for fun and enjoyment but also as a personal and professional writing exercise, so I might as well practice tweeting as well.

So if you want to give me some feedback and you do the Twitter thing you can become one of my Tweeps and follow me on Twitter as @KostyBluray.

No promises on how long I will keep it up but I'll try it for a while and include links to the forum when the updated charts are posted. I'll also re-tweet good stuff from HMM The Digital Bits and The-Numbers and other industry sites as well.

https://twitter.com/#!/


34fe6bs.jpg
2qbswnk.jpg
ei85kh.jpg
2r213wx.jpg

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post #25 of 73 Old 06-11-2012, 01:53 PM - Thread Starter
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Quote:
Originally Posted by h0mi;2311036 

Do you have the numeric figures for

http://i40.tinypic.com/314umon.jpg



?

314umon.jpg
Code:
Year Total   DVDsell DVDrent BDsell  BDrent
                                        
1997             0.30    0.00           
1998             0.45    0.05           
1999     1.10    0.96    0.14    0.00   0.00
2000     2.40    1.82    0.58    0.00   0.00
2001     5.30    4.21    1.09    0.00   0.00
2002     8.60    6.45    2.15    0.00   0.00
2003    13.10    9.44    3.66    0.00   0.00
2004    16.70   12.45    4.25    0.00   0.00
2005    18.90   13.51    5.39    0.00   0.00
2006    20.20   13.89    6.29    0.02   0.00
2007    20.00   13.38    6.31    0.25   0.05
2008    19.30   12.48    5.92    0.63   0.27
2009    17.30   10.55    5.25    1.07   0.43
2010    16.20    8.50    5.35    1.80   0.50
2011    14.60    6.80    4.90    2.15   0.77


15gzbb9.jpg
Code:
Digital/VOD  0.5     0.5     0.6     0.7     0.7     0.7     0.7     0.7     0.8     1.0     1.3     1.6     2.1     2.3     3.4             Digital/VOD

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What I can clearly see is the clear temporary nature of the sell through bulge from 2002 to 2008 and how unusual and temporary it really was in the Hollywood revenue stream and how unlikely it seems to be repeated.

When you see how consistent the rental revenues are over time that seems to be a steady demand from consumers.

That surge for sell through in that range seems to be the bonanza from the first release on digital media (DVD) of the studio library to consumers that was already slowing when Blu-ray was launched as the studios ran out of good stuff to release.



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post #26 of 73 Old 06-11-2012, 01:53 PM - Thread Starter
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Quote:
Consumer Spending on Home Entertainment Rising for the First Time in Years

12:16 PM PDT 4/29/2012 by Thomas K. Arnold

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Justin Sullivan/Getty Images

The Digital Entertainment Group reports that subscription streaming rose an estimated 545.5% in the first quarter of 2012, while rentals at brick-and-mortar stores fell a devastating 39.4%.

Home video chiefs at the Hollywood studios finally have something to smile about.


For the first time in years, consumer spending on home entertainment actually rose in the first quarter of 2012, rising 2.5% to $4.45 billion largely due to the strength of streaming, according to numbers compiled by DEG: The Digital Entertainment Group.

The real good news for the studios, however, is that packaged media sales remained steady in the first quarter of 2012, with disc sales down less than 1% from the first quarter of 2011 – a sharp contrast to previous years, when first-quarter sales typically edged down in the double digits.


According to DEG, consumers spent $2.06 billion on Blu-ray Discs and DVDs in the first three months of 2012, down just slightly from the estimated $2.07 they spent in the comparable period last year. Continued declines in DVD purchases were offset by a 23% rise in Blu-ray Disc sales, the DEG says.

Add in electronic sellthrough, which posted a 17% gain in the first quarter, and total consumer spending on home entertainment purchases rose 0.5% to $2.22 billion.

More good news for the studios: disc sales of theatrical movies rose 2% in the quarter, sales of catalog titles on Blu-ray Disc were up 27%, and TV on Blu-ray sales soared 54%. More than 40.8 million U.S. homes now have at least one device capable of playing Blu-ray Discs.

The disc rental business didn’t fare as well. Rentals at brick-and-mortar stores fell 39.4% to $305 million, while subscription disc rental – mostly Netflix – was down an estimated 48% to $348 million, DEG claims. Kiosk rental – mostly Redbox – rose an estimated 30.1% to $523 million.

Subscription streaming, however, rose an estimated 545.5% to $548.6 million, largely due to Netflix’s successful conversion of disc renters to streamers. Video-on-demand posted a smaller gain of 6.8%, rising to $505.3 million.

Total rental spending – consisting of disc rentals as well as VOD and streaming – rose 4.4% to $2.23 billion from $2.13 billion in the first quarter of 2011.

UltraViolet, the studio-backed, cloud-based “digital locker” service, service grew to 2 million accounts in the quarter, DEG reported.
http://www.hollywoodreporter.com/news/consumer-spending-home-entertainment-netflix-bluray-redbox-317877
Quote:
Home Video Spending Up 2.5% In Q1 To $4.45B; Subscription Streaming Soars


DEG-logo_20110805211753.jpg

By DAVID LIEBERMAN, Executive Editor | Sunday April 29, 2012 @ 2:41pm EDT


The data out today from DEG: The Digital Entertainment Group may suggest that the period of steep declines in home video spending — largely driven by the collapse of the DVD market — is over.

But it also may just reflect the fact that the quarter had more popular movies: Films available on home video in the quarter did 12.5% better at the box office than did comparable releases last year.

Whatever the reason, total sales of DVD and Blu-ray discs fell just 0.6% in Q1 to $2.06B; DEG says that Blu-ray now accounts for about a quarter of all disc sales. Throw in the $165M spent to buy digital files of movies and TV shows, and the sell-through market was up 0.5%.

Digital vendors really showed their muscle in rentals. Spending on subscription streaming services such as Netflix was up 545.4% to $548.6M while digital VOD from providers including Apple’s iTunes was up 6.8% to $505.3M.

Meanwhile, the rash of store closings at Blockbuster contributed to a 29.4% decline in rentals at bricks-and-mortar stores to $305M. And Netflix’s struggles with its DVD business helped to drive a 48.1% slide in subscription disc rentals to $348M. Bricks-and-mortar and subscription DVD rental services now individually do less business than pay TV’s VOD which was up 6.8% to $505.3M.

Another winner: kiosk services led by Redbox. Their rocketed 30.1% to $523M.

DEG says that consumers opened 2M UltraViolet accounts, enabling them to use mobile devices to stream the home videos they buy.
http://www.deadline.com/2012/04/consumers-spent-4-45b-on-home-video-in-q1-up-2-5/
Quote:
Hollywood hopes rise as Blu-ray, digital offset DVD decline

By Ronald Grover | Reuters – 8 hours ago

2012-04-29T174820Z_1_CBRE83S1DGM00_RTROPTP_2_SONY.JPG

LOS ANGELES (Reuters) - Hollywood may be seeing a turnaround in a seven-year decline of home video sales, thanks to double-digit sales growth of Blu-ray discs and online movies and TV shows, an industry trade group is expected to announce on Sunday night.

The Digital Entertainment Group, a trade group whose members include studios, consumer electronic companies and others, will report that U.S. consumers spent $4.5 billion on home entertainment in the first quarter this year, an increase of 2.5 percent from a year ago.

That's the second quarter of growth in the last three quarters for home entertainment spending, which includes purchases and rentals of DVDs, Blu-ray discs and online, as well as subscriptions to services like Netflix.

Overall spending declined on those items by 2.1 percent in 2011, to $18 billion, the seventh consecutive year of decline, according to data on the group's website.

"The business feels as if it has begun to stabilize," said Ron Sanders, president of Warner Home Video and DEG president. "Hopefully, we've hit bottom."

Sales of Blu-ray discs surged by 23 percent, the group said. That growth was spurred by strong Christmas sales of Blu-ray players, continued video sales of holiday releases like the hit "Kung Fu Panda 2" and the February release of the blockbuster "The Twilight Saga: Breaking Dawn - Part 1."


Blu-ray growth partially offset the continued decline in DVD sales. Packaged good sales, which include both formats, fell by 0.6 percent from a year earlier, to $2.1 billion.
Home sales of film and tv shows reversed that decline, and increased by 0.5 percent if sales through electronic outlets such as Apple's iTunes service are included. Consumers purchased $165 million of those so-called electronic sell-through products.

The industry's largest growth engine continues to be online subscriptions, such as those offered by Netflix, which grew five-fold in the quarter, to $548.6 million.

Most of that online subscription growth appears to come from Netflix customers who chose subscriptions for streaming over its traditional DVD by mail service when the company split the two options last year. Nationwide, DVD subscription sales fell by $322.8 million in the quarter.

Industry officials expressed optimism that growth will continue, based on continued sales of Blu-ray players and introduction of the studio-backed UltraViolet service by which consumers can buy movies that are shared among several cloud-connected devices. Nearly 2 million users have signed up since the serviced was introduced late last year, DEG said.

"We believe we're at an inflection point," said David Bishop, president of Worldwide Sony Pictures Home Entertainment. "We've created an installed base that will grow, and which we think will continue to give us momentum."
http://movies.yahoo.com/news/hollywood-hopes-rise-blu-ray-digital-offset-dvd-171109239--sector.html
Quote:
DEG: First Quarter Spending Continued to Stabilize in Q1

29 Apr, 2012
By: Stephanie Prange

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Home entertainment spending continued to stabilize in the first quarter of 2012 with overall consumer spending on rental and sellthrough of both packaged and digital media up 2.5% from the first quarter of 2011
, to $4.45 billion, according to numbers released by DEG: The Digital Entertainment Group.

Once again, Blu-ray Disc was a major driver, with spending jumping 23% for the quarter. Catalog sales on Blu-ray Disc were up 27%, and TV on Blu-ray sales were up 54%.

Total household penetration of all Blu-ray compatible devices now stands at more than 40.8 million U.S. homes.

Total sellthrough spending — including packaged media and electronic sellthrough — was flat, up less than a percent at $2.22 billion. Packaged good sales were flat as well, through theatrical disc sales (DVD and Blu-ray combined) grew 2%.


Physical disc rental spending (minus streaming and VOD) fell 25% as Blockbuster and other physical rental stores shuttered in the quarter and Netflix lost disc customers. Subscription disc rentals fell nearly 50%. The lone physical rental winner, kiosk rentals, jumped 30% on the rise of Redbox.

On the digital side, the studio-backed UltraViolet cloud-based storage service grew to 2 million accounts in the quarter, DEG reported. Meanwhile, electronic sellthrough grew 17% to $165 million, and VOD nearly 7% to $505.3 million. Subscription streaming jumped a whopping 545% to $548.6 million. Total digital spending — including VOD, EST and subscription streaming — grew 74% to $1.2 billion.



http://www.homemediamagazine.com/industry-news/deg-first-quarter-spending-continued-stabilize-q1-27114

DEG had Blu-ray catalog doing +27% up YoY in the 1Q 2011 period even better than the +23% for Blu-ray.

While that's not that much more and maybe within the margin of error its still might be significant as theoretically the growth in Blu-ray catalog sales would be more linked to Blu-ray's growth pace without regard to the variations in release strength or genre.

Logically it makes perfect sense that Blu-ray catalog sales would improve as the total user base of Blu-ray owners increase and the articles above cited strong Blu-ray player sales in the holiday season as a factor. They would be even improving regardless as of new release strength as retailer support for Blu-ray improves and more Blu-ray owners enter the market over time.

It will be interesting if the DEG mentions Blu-ray TV and catalog sales in the next report as well so we can get a longer trend there. Also if better Blu-ray new releases cause Blu-ray theatrical movie gains in the 2Q and the rest of the year to pace above that 27% growth in Blu-ray catalog sales.

If the 27% growth rate for Blu-ray catalog sales is accurate then the Blu-ray growth rate for the next five months without a lot of major releases in the 2Q and 3Q should trend to that benchmark as well.
Variety's take

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Quote:
Homevid biz grows 2.5% in first quarter

Blu-ray, VOD, digital distribution pump sales


Variety
Posted: Sun., Apr. 29, 2012, 11:00am PT

By MARC GRASER

Hollywood's homevideo biz grew 2.5% during the first quarter, driven by stronger sales of Blu-ray discs, a growth in digital sales and VOD, although rentals remained strong through kiosks.

During the three-month period, homevid generated $4.5 billion in sales overall, according to the Digital Entertainment Group. Sales of entertainment surpassed rentals -- $2.2 billion vs. $1.7 billion.

The biggest gains during the three-month period came from subscription-based streaming services from companies like Netflix, which saw sales surge 545% to $549 million. Netflix saw revenue from its subscription-based disc-by-mail service fall 48% to $348 million.

Kiosks operated by Redbox and others earned $523 million, growing 30% for the rental category. VOD improved 7% to collect $505 million in rental fees.

The shuttering of more Blockbuster outlets caused in-store rentals to decline another 39% to $305 million.

However, Blu-ray was up 23%, with sales of older catalog titles growing 27%, and TV shows on Blu-ray improving 54% during the quarter. Blu-ray discs now represent a quarter of all disc sales.

An estimated 2.4 million Blu-ray players sold in the first quarter, with the tally including PlayStation 3 gaming consoles and home theaters in a box units. There are now 40.8 million Blu-ray devices in U.S. homes.


The sales figure are a good sign for the studios, which are looking for ways to encourage more consumers to purchase rather than rent films and TV shows. The DEG said the results reflect "the continued stabilization of the industry."

As studios put more promotional muscle behind digital locker service UltraViolet this year, the majors are hopeful that the electronic sell-through category will continue to grow; it was up 17% during the period to earn $165 million. More than 2 million UltraViolet accounts have now been created.

During the same frame, 6.5 million HDTVs were sold in the U.S., with more than 77.6 million U.S. households own an HDTV set.
http://www.variety.com/article/VR1118053268.html?cmpid=RSS|News|FilmNews
Quote:
Bloomberg

Home-Video Spending Rose 2.5% in First Quarter, DEG Says

By Ye Xie - Apr 29, 2012 5:25 PM ET

Home-video spending by U.S. consumers rose 2.5 percent in the first quarter from a year earlier, to $4.5 billion, driven by increased demand for Blu-ray discs, according to the Digital Entertainment Group.

Blu-ray disc sales jumped 23 percent in the first three months of 2012, the industry-backed DEG said in a statement. Spending on packaged videos, including DVDs and Blu-ray, declined 0.6 percent to $2.1 billion, indicating a drop in DVD sales.

Blu-ray accounted for a quarter of total spending on movie discs, compared with less than 15 percent two years ago
, the Los Angeles-based group said. It didn’t break out specific dollar amounts within the packaged-goods category.

Kiosk rentals, such as those provided by Coinstar Inc. (CSTR)’s Redbox, jumped 30 percent in the quarter to $523 million.
http://www.bloomberg.com/news/2012-04-29/home-video-spending-rose-2-5-in-first-quarter-deg-says.html
Quote:
News Analysis

Blu-ray Discs Leading Home Video Rebound

By Swanni

Washington, D.C. (April 29, 2012) -- For the first time in seven years, home video sales are rising thanks to double-digit sales growth for Blu-ray discs and online movies.


That's according to the Digital Entertainment Group (DEG), as reported by Reuters. (The DEG is a trade group that represents studios and CE companies.)

Reuters writes that the DEG is reporting that U.S. consumers spent $4.5 billion on home video in the first quarter this year, an increase of 2.5 percent compared to the 2011 first quarter. The increase marks the second quarter of growth in the last three quarters -- and there little doubt where the biggest improvement is coming from: Blu-ray.

Sales of Blu-ray discs jumped 23 percent in the first quarter, led by big holiday releases such as The Twilight Saga: Breaking Dawn, Part I and Kung Fu Panda 2.

While DVD sales continue to fall, the Blu-ray disc is breathing new life into the hard disc category. Overall disc sales fell just 0.6 percent in the first quarter, a strong improvement from previous quarters.


“The business feels as if it has begun to stabilize,” stated DEG President Ron Sanders who's also president of Warner Home Video.

Reuters writes that the DEG found that sales of all films and TV shows rose 0.5 percent in the first quarter when you also include online sales.

The DEG says that the majority of online subscription growth is coming from Netflix customers who switched from DVD-only service to streaming last year.
http://www.tvpredictions.com/seconddead042912.htm
Quote:
Blu-ray Movie Sales Continue to Rise as Audience Transitions from DVD

Digital distribution also sees steady growth according to Digital Entertainment Group


Article | 04.29.12 | By John Gaudiosi


The Digital Entertainment Group (DEG) has released sales data for the first three months of 2012 and things are looking up for the home entertainment industry. The first quarter of 2012 saw the continued stabilization of the industry underscored by promising gains in Blu-ray Disc, with steady increases in electronic sell-through (EST) and video-on-demand (VOD) spending, and modest growth in sell-through. Hit movies like Immortals have translated to strong sales in home entertainment. (See Henry Cavill discuss the movie in the exclusive video below.)




Overall consumer spending was up 2.5 percent compared to the first quarter last year, driven by a healthy consumer appetite for Blu-ray. Blu-ray Disc saw continued double digit growth (up 23 percent) in sales over first quarter 2011. Indeed, Blu-ray Disc now accounts for one out of four of all of the physical sell-through dollars spent by consumers compared to less than 15 percent two years ago. The progress in Blu-ray Disc sales is even more significant when viewed as growth off an ever-increasing base.

Highlights for the first quarter include:

Blu-ray Disc and EST continued their steady gains with consumer spending on Blu-ray jumping 23 percent and EST up 17 percent compared to the same period last year.

Physical sell-through of theatrical product was up two percent for the quarter, while catalog sales on Blu-ray Disc were up 27 percent, and TV on Blu-ray sales were up 54 percent, underscoring that Blu-ray Disc is the standard for quality home entertainment.

With most major studios backing UltraViolet, and with the support of major retailers, consumers have embraced UltraViolet’s flexibility and value of ownership by opening nearly two million UltraViolet accounts to access and enjoy their movies and TV shows in the cloud.

The number of Blu-ray homes continues to climb, with 2.4 million players sold in the first quarter (including BD set-tops, PS3s and HTiBs). Total household penetration of all Blu-ray compatible devices now stands at more than 40.8 million U.S. homes.

Further, 6.5 million HDTVs were sold to U.S. consumers in the first quarter 2012. HDTV penetration to date is now at more than 77.6 million U.S. households.
http://www.gamerlive.tv/article/blu-ray-movie-sales-continue-rise-audience-transitions-dvd

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Quote:
Blu-ray and DVD Holding Their Own Against Internet Streaming

By Robert Silva, About.com GuideApril 30, 2012

If you believe all the hype, almost everyone streams their movies and TV shows from the internet. However, in reality, although internet streaming continues to increase in popularity (up an amazing 545% from the same period last year to to $548 million in revenue), the majority of consumers still spend most of their home entertainment dollars on both DVDs and Blu-ray Discs, and it looks like that will continue for awhile.

According to the latest figures provided by the DEG (Digital Entertainment Group), consumer spending on Blu-ray discs is up 23 percent Year-over-Year, which includes a 2 percent increase in new film titles, a 27 percent increase for catalog titles, and 54 percent increase for TV-on-Blu-ray titles. Total Blu-ray and DVD revenue for quarter one 2012 held up well at $2.05 billion, just slightly down from the 2011 quarter one total of $2.07 billion, due to a slight decrease in DVD sales revenue, which continues an overall downward trend.

The number of U.S. households that now have a Blu-ray compatible playback devices (includes Blu-ray Disc players, Blu-ray Home-Theater-in-a-Box systems, and Sony PS3 game consoles) now total 40.8 million.

In addition, physical DVD and Blu-ray Disc rentals continue to remain healthy, even as Netflix is de-emphasizing that part of its service and Blockbuster now not as much of a competitive factor. It turns out that Redbox has picked up more DVD rental market share, continuing to pass Netflix as the largest DVD rental service as its $53.7 million 2012 first quarter net revenue substantially beat 2011 first quarter numbers.

As a related side note, 77.6 million US households (out of approximately 115 million total) now have at least one HDTV.

The battle between streaming and physical media continues, stay tuned...

For additional details and perspective, read the reports from TV Predictions and The Hollywood Reporter. Also, share your own entertainment spending preferences by voting my new continuing poll:
http://hometheater.about.com/b/2012/04/30/blu-ray-and-dvd-holding-their-own-against-internet-streaming.htm

TWICE
Quote:
DEG: Blu-ray, Streaming Growth Seen In Q1

By Greg Tarr -- TWICE, 4/30/2012


Los Angeles - The digital home entertainment industry saw further stabilization in the first quarter of 2012 with signs of significant growth ahead for the Blu-ray Disc segment, according to findings from the Digital Entertainment Group (DEG).

The first-quarter results, as reported by the video home entertainment industry promotion group, were said to have been buoyed by steady increases in electronic sell-through (EST) and video-on-demand (VOD) spending, with modest growth seen in sell-through.

Overall consumer spending rose 2.5 percent compared with the first quarter last year, with a significant portion of revenue coming from Blu-ray sales.

Blu-ray Disc saw a 23 percent increase in sales over first quarter 2011, and now accounts for 25 percent of all consumer pre-recorded video sell-through revenue, up from less than 15 percent two years ago.


Highlights for the first quarter include:

Electronic sell-through revenue was up 17 percent compared with the same period last year.

Physical sell-through of theatrical product was up 2 percent for the quarter, while catalog sales on Blu-ray Disc were up 27 percent, and TV on Blu-ray sales were up 54 percent.

Nearly 2 million UltraViolet accounts have now been created to help consumers access and view purchased movie and TV show content from the cloud.

The number of Blu-ray homes increased with the addition of 2.4 million players in the first quarter (including BD set-tops, PlayStation3s and HTiBs). Total household penetration of all Blu-ray-compatible devices now stands at more than 40.8 million U.S. homes, the DEG said.

Another 6.5 million HDTVs were sold to U.S. consumers in the first quarter of 2012, raising the U.S. HDTV household penetration rate to more than 77.6 million U.S. households.
http://www.twice.com/article/483809-DEG_Blu_ray_Streaming_Growth_Seen_In_Q1.php?rssid=20310&utm_medium=twitter&utm_source=twitterfeed
Quote:
US home video sales jump 2.5 percent in Q1 2012, Blu-ray and streaming services gain traction

By Chris Welch on April 30, 2012 07:32 pm



US consumers spent $4.45 billion on home video entertainment in the first quarter of 2012, according to figures just released by Digital Entertainment Group. That's an upswing of 2.5 percent over the same period last year, with digital streaming services and Blu-ray coming away as the big winners this quarter.

Purchases of the high-definition optical media jumped 23 percent to $541 million in Q1, and Blu-ray continued to enter new homes with 2.4 million players sold. That's some healthy growth to be sure, but BD remains a long way from toppling DVD as America's physical format of choice: the latter managed to take in $1.51 billion even after a seven-percent dip in sales.


The numbers aren't quite so kind to the rental market, unfortunately: physical media rentals plummeted by 25 percent to $1.18 billion during the quarter. That shouldn't come as much of a shock when you factor in Blockbuster's continuing woes and the migration of Netflix subscribers to digital streaming.

Streaming services are clearly on an upward trend, with digital downloads and video-on-demand content seeing a 74 percent rise in sales and totaling $1.22 billion — though how DEG reaches this figure isn't clear.

Still, it's not all doom and gloom in rental land, as Redbox brought in $523 million, which represents growth of 30 percent compared to 2011 and accounts for nearly half of the entire segment. It would seem those studio-imposed delays haven't had poised much of a financial burden after all.


http://www.theverge.com/2012/4/30/2989719/us-home-entertainment-sales-increase-q1-2012

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http://www.degonline.org/pressreleases/2012/DEG_Q1_2012_4.29.12.pdf

http://www.degonline.org/pressreleases/2012/DEG%20Q1%202012%20Home%20Entertainment%20Spending%20Final%204%2029%2012%20.pdf
Quote:
April 29, 2012

Attached is the DEG’s First Quarter 2012 Home Entertainment Report compiled by DEG members, tracking sources and retail input.

First Quarter Home Entertainment Spending Edges Up

Sales of Blu-ray Disc Soar 23 Percent

Digital Distribution Continues Steady Growth

The first quarter of 2012 saw the continued stabilization of the industry underscored by promising gains in Blu-ray Disc, with steady increases in electronic sell-through (EST) and video-on-demand (VOD) spending, and modest growth in sell-through.

Overall consumer spending was up 2.5 percent compared to the first quarter last year, driven by a healthy consumer appetite for Blu-ray. Blu-ray Disc saw continued double digit growth (up 23 percent) in sales over first quarter 2011. Indeed, Blu-ray Disc now accounts for one out of four of all of the physical sell-through dollars spent by consumers compared to less than 15 percent two years ago. The progress in Blu-ray Disc sales is even more significant when viewed as growth off an ever-increasing base.
.
Highlights for the first quarter include:

 Blu-ray Disc and EST continued their steady gains with consumer spending on Blu-ray jumping 23 percent and EST up 17 percent compared to the same period last year.

 Physical sell-through of theatrical product was up two percent for the quarter, while catalog sales on Blu-ray Disc were up 27 percent, and TV on Blu-ray sales were up 54 percent, underscoring that Blu-ray Disc is the standard for quality home entertainment.

 With most major studios backing UltraViolet, and with the support of major retailers, consumers have embraced UltraViolet’s flexibility and value of ownership by opening nearly two million UltraViolet accounts to access and enjoy their movies and TV shows in the cloud.

 The number of Blu-ray homes continues to climb, with 2.4 million players sold in the first quarter (including BD set-tops, PS3s and HTiBs). Total household penetration of all Blu-ray compatible devices now stands at more than 40.8 million U.S. homes.

 Further, 6.5 million HDTVs were sold to U.S. consumers in the first quarter 2012. HDTV penetration to date is now at more than 77.6 million U.S. households.

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DEG Blu-ray Playback Capable Household Adoption Trends 2006-2012


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BDA Blu-ray Presentation April 2012

This presentation was given by Victor Matsuda, Vice President, Blu-ray Group, Sony Corporation of America at Media-Tech Las Vegas 2012, 3 weeks ago.

Full slide set here as pdf:

Selected slides:

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http://www.media-tech.net/fileadmin/templates/association/Las_Vegas_2012/Presentations/matsuda2.pdf

hat tip mikemorel

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Here is some interesting thoughts bruceames had at High Def Forum that I graphed out.

Making the assumption that Blu-ray's Top 20 Sellers revenue share (which we do not have) is 25% greater than the Blu-ray Top 20 Unit Share (which we do have from the Mon-Sun HMM reported Nielsen Videoscan report one day offset to the HMM reported revenue share Sun-Sat weekly report) we can compare that over time to the overall gains in total Blu-ray revenue marketshare.


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Quote:
Originally Posted by bruceames@HDF 
Here is a table of Blu-ray total revenue share (TotRev) vs. top 20 unit share (T20units) and top 20 revenue share (T20rev - estimated by adding 25% to the unit share). The quarterly revenue figure (Revenue) is in millions. Totals by quarter.

The purpose is to compare T20 market share growth vs. overall growth. Notice that the T20 revenue share is approximately double the overall share.
Code:
Year T20units TotRev T20rev  Revenue
Q109    10.6%   7.0%    13.3%   160
Q209    10.7%   8.5%    13.4%   187
Q309    14.0%   9.8%    17.5%   200
Q409    22.1%   13.0%   27.6%   522
Q110    24.0%   13.7%   30.0%   370
Q210    28.2%   17.0%   35.3%   363
Q310    22.8%   14.7%   28.5%   267
Q410    31.4%   20.6%   39.3%   800
Q111    32.4%   19.7%   40.5%   407
Q211    34.7%   21.7%   43.4%   397
Q311    34.6%   24.2%   43.3%   422
Q411    43.4%   27.0%   54.3%   925
Q112    36.2%   23.8%   45.3%   479
Q212    38.6%   22.9%   48.3%   144

Cool :

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Quote:
Originally Posted by bruceames@HDF 
Here is the same table with the (weighted) yearly totals as well. Again, notice how the top 20 revenue share as almost exactly double the overall share, and that the top 20 unit share is very consistently about 1.58 times the overall revenue share.

Therefore, according to this remarkably consistent ratio trend, for every 1.58 percent that the T20 market share rises, the overall share rises 1 percent. Doing the math then, if the OD top 20 were maxed out at 100 percent Blu-ray, then the overall BD revenue share (as reported by HMM or DEG) would still only be 63 percent.
Code:
Year T20units TotRev T20rev  Revenue
Q109    10.6%   7.0%    13.3%   $160
Q209    10.7%   8.5%    13.4%   $187
Q309    14.0%   9.8%    17.5%   $200
Q409    22.1%   13.0%   27.6%   $522
[B][COLOR="Red"]2009Tot       16.9%   10.7%   21.1%   $1,069[/COLOR][/B]

Q110    24.0%   13.7%   30.0%   $370
Q210    28.2%   17.0%   35.3%   $363
Q310    22.8%   14.7%   28.5%   $267
Q410    31.4%   20.6%   39.3%   $800
[B][COLOR="Red"]2010Tot       28.0%   17.6%   35.0%   $1,800[/COLOR]
[/B]
Q111    32.4%   19.7%   40.5%   $407
Q211    34.7%   21.7%   43.4%   $397
Q311    34.6%   24.2%   43.3%   $422
Q411    43.4%   27.0%   54.3%   $925
[B][COLOR="Red"]2011Tot       38.0%   24.1%   47.5%   $2,151[/COLOR]
[/B]
Q112    36.2%   23.8%   45.3%   $479
Q212    38.6%   22.9%   48.3%   $144

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