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Monday, July 30, 2012
Blu-ray Disc Sales Increased in Q1

According to the DEG's (Digital Entertainment Group) mid-year 2012 home entertainment report, the home entertainment sector further stabilized in the first half of 2012, experiencing a 1.43% increase in consumer spending compared to the first half of 2011.

This stabilization, said the report, was led by a surge in digital distribution and continuing double-digit increases in Blu-ray Disc sales, including catalogue product.

In addition to the continued growth of Blu-ray, the industry experienced remarkable jumps in digital distribution revenue in the first six months of the year, driven by electronic sell-through (EST). The growth of EST is especially noteworthy now as it underscores the expansion of the UltraViolet cloud-based system introduced to consumers last year, and also reflects strong consumer response to the increased availability of EST. The number of household UltraViolet accounts recently surpassed 4 million.

Among the trends in the first half of the year were:

- Blu-ray Disc sales continued to grow steadily at double-digital rates with consumer spending for the first half up 13.3% compared to the same period last year

- Catalogue product on Blu-ray Disc continued its strong growth, increasing 26% during the same period, which further cements the notion that Blu-ray has become the standard in home entertainment

- Digital distribution provided additional growth in the first half of the year due to a greater consumer response to EST, which led to a 21.86% increase in EST consumer spending compared to mid-year 2011, and a 27% increase in Q2 compared to Q2 2011. Additionally, VOD was up 11.6% compared to the mid-year 2011, with a 17.2% increase in the second quarter compared to Q2 2011, showing increasing consumer demand resulting from wider access and improved ease of use

- The number of Blu-ray homes continued to rise, with 1.4 million Blu-ray Disc players (inclusive of BD set-tops, PS3s and HTiBs,) sold in Q2, bringing the total household penetration of all Blu-ray compatible devices to more than 42.1 million US homes

- More than 4.6 million HDTVs were sold to US consumers in Q2 2012; HDTV penetration to date is nearly 80 million US households

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