Home Entertainment Spending Seems to Have Stabilized in Q2

  • An increasing number of viewers are turning to rental programs for movies and TV shows, according to a report from Digital Entertainment Group.
  • DEG also reports that consumer spending on home entertainment has stabilized with an unexpected recovery to the disc-based business in the second quarter.
  • The report concludes that consumers spent $4.2 billion on transactional video services — disc rental, streaming and VOD — during the first half of 2011. These figures mark an 11 percent increase over the same period last year.
  • The report also mentions a 16 percent drop in disc purchases, with combined Blu-ray and DVD sales falling to $1.8 billion in the second quarter. However, rental — including streaming and VOD — was up 11.16 percent. (Blu-ray sales increased 10 percent, while demand for DVD declined.)
  • Netflix rose 45.7 percent in the first six months of this year, while kiosk rental (mostly Redbox) rose 39.8 percent.
  • The Hollywood Reporter adds: “Spending on Blu-ray Discs was up a solid 10 percent in the first half. DEG estimates that the number of U.S. households with at least one Blu-ray Disc playback device rose 16 percent in the first six months of 2011 to bring total household penetration to more than 31.6 million, making the format one of the fastest-growing new technologies in the home entertainment industry.”

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