Consumer Home Entertainment Spending Remains Stable
Data relased by DEG: The Digital Entertainment Group for the third quarter show that
consumer spending on home entertainment was down slightly with record digital sales offsetting continued declines in disc sellthrough and rental.
DEG found that consumers spent $3.92 billion on home entertainment product during the third quarter, down 1.2% from the $3.97 billion spent during the same quarter in 2013.
Electronic sellthrough spending rose 26.7% to $347 million (up from $274 million) while subscription streaming revenue crossed the $1 billion mark, rising 26.1% to $1.03 billion (up from $815.2 million). Overall, digital revenues were $1.8 billion, up 15.5% from $1.56 billion. Spending on EST for new theatrical releases was up 70% during the quarter, and year-to-date, EST spending on new releases is up 88%.
The report also showed a decline in disc sellthrough, which was down more than 8% to $1.33 billion (compared to $1.49 billion a year ago). Brick and mortar rental also saw big decline, down 30.4% to $170.2 million, compared to $244.6 million a year ago.
Kiosk operators saw quarterly revenue drop 11.5% to $417.9 million (down from $472 million), while physical disc subscription revenues were also down (17.7% to $205 million, down from $249 million).
Box officer revenue during the third quarter was flat at $2.02 billion.
The number of Blu-ray Disc homes now sits at nearly 80 million, while the number of HDTV homes is more than 104 million, with consumers buying more than 21 million HDTVs so far this year.
In addition, DEG said that there are more than 20 million UltraViolet accounts with more than 100 million movies and TV shows in their UltraViolet libraries.
Electronic sellthrough spending rose 26.7% to $347 million (up from $274 million) while subscription streaming revenue crossed the $1 billion mark, rising 26.1% to $1.03 billion (up from $815.2 million). Overall, digital revenues were $1.8 billion, up 15.5% from $1.56 billion. Spending on EST for new theatrical releases was up 70% during the quarter, and year-to-date, EST spending on new releases is up 88%.
The report also showed a decline in disc sellthrough, which was down more than 8% to $1.33 billion (compared to $1.49 billion a year ago). Brick and mortar rental also saw big decline, down 30.4% to $170.2 million, compared to $244.6 million a year ago.
Kiosk operators saw quarterly revenue drop 11.5% to $417.9 million (down from $472 million), while physical disc subscription revenues were also down (17.7% to $205 million, down from $249 million).
Box officer revenue during the third quarter was flat at $2.02 billion.
The number of Blu-ray Disc homes now sits at nearly 80 million, while the number of HDTV homes is more than 104 million, with consumers buying more than 21 million HDTVs so far this year.
In addition, DEG said that there are more than 20 million UltraViolet accounts with more than 100 million movies and TV shows in their UltraViolet libraries.
