According to DEG's Third Quarter 2011 Home Entertainment Report, the third quarter 2011 results mark a stabilization of the industry, underscored by significant gains in Blu-ray Disc and solid increases in electronic sell-through (EST) spending.

DEG report is compiled by DEG members, tracking sources and retail input.

Overall consumer spending jumped nearly five percent compared to the third quarter a year earlier, marking a major milestone, as this is the first time spending has increased since the first quarter of 2008 when the economic downturn began, the report says.

There were a number of promising trends in the third quarter, signifying an ongoing consumer appetite for home entertainment products. Among the bright spots:

- Blu-ray Disc and EST continued their steady gains with consumer spending on Blu-ray sell-through up an impressive 58 percent and EST up nearly 13 percent compared to the same period last year.

- For major box-office hits, sales of packaged goods often surpass 50 percent on Blu-ray in their first week of release.

- Catalog Blu-ray sales are also on the rise, with year-to-date increases of more than 60 percent, led by the stellar sales of popular classics such as Star Wars, Citizen Kane, Scarface and The Big Lebowski, among others.

- Among the various services and platforms for delivering filmed entertainment to consumers, Blu-ray, EST, and streaming all saw growth in third quarter 2011. These also represent some of the industry?s highest growth margin areas.

- The number of Blu-ray homes continues to climb, soaring 52 percent in the third quarter from a year earlier (including BD set-tops, PS3s and HTiBs.) Total household penetration of all Blu-ray compatible devices now stands at more than 33.5 million U.S. homes.

- Further, 5.5 million HDTVs were sold to U.S. consumers in the third quarter 2011. HDTV penetration to date is now at more than 69.5 million U.S. households.

- The industry is confident the holiday season will be strong. Theatrical blockbusters coming to home entertainment in the fourth quarter include Captain America: The First Avenger, Cars 2, Cowboys & Aliens, Hangover 2, Harry Potter and the Deathly Hallows: Part 2, The Help, Kung Fu Panda 2, Rise of the Planet of the Apes, The Smurfs, and Water for Elephants.