US DVD Sales (Continue to) Drop as Digital Breaks Records
Digital continues to displace traditional distribution for Hollywood studios, and data released by the industry continues to reflect that.
According to estimates released by Digital Entertainment Group, an LA-based consortium founded by studios, American spending on home entertainment slipped by 1.8% from the previous year to $17.8 billion in 2014.
The biggest reason for the revenue drop? American consumers are increasingly turning to digital options for buying, renting, and streaming movies and TV shows.
Physical disc sales (DVDs, Blu-rays), which fell 11% to $6.9 billion in 2014. Numbers for kiosks and video rental stores weren’t better, with the former dropping 4% to $1.8 billion, and the latter plummeting 27% to $696 million, in 2014.
Revenues from electronic sell-through, on the other hand (iTunes, Amazon, Google Play, etc.) jumped 30% to hit $1.6 billion in 2014 — a new record.
Subscription streaming services like Netflix and Amazon were another bright spot for the overall home-entertainment industry, gaining 26% year-over-year to reach $4 billion in revenue. And the market was pretty consistent throughout the year, as in the fourth quarter alone, SVOD topped $1 billion in revenue.
To be fair, DEG cautioned that these are estimates, which were released during the annual International CES in Las Vegas. Firmer numbers will be released by the group by the end of January.Tags: blu-ray, CES 2015, digital distribution, Digital Entertainment Group, DVD, Home Entertainment, iTunes, Netflix, SVOD