Blu-ray and Netflix Keep Home Media Sales Afloat
U.S. consumers have increased their home entertainment spending by 2.5 %, roughly $4.5 billion, over a year ago, according to the Entertainment Group, a trade group made up of members who include media production studios and consumer electronic s companies, among others. This is the second quarter to see an increase in spending in this sector and is represented by sales and rentals of DVDs, Blu-ray discs, and the web-based media subscription services, particularly Netflix.
Netflix represents the industries hope leading online subscriptions to a five-time increase of almost $550 million. This growth is in part due to the split it introduced between its streaming video service and hard-copy DVD/Blu-ray rentals program. DVD rentals have continued to decline nationwide.
Blu-ray is the big story here, capturing a sales increase of 23%. Growth was attributed to prevalent December holiday sales of Blu-ray players and video sales during that period. While DVD sales maintain their decline, Blu-ray was able to partially offset it.
“The business feels as if it has begun to stabilize,” said Ron Sanders, president of Warner Home Video and DEG president. “Hopefully, we’ve hit bottom.”
UltraViolet represents the industries optimism and effort to keep up with the ever-changing landscape of media consumption. This service, previously described here, allows viewers to purchase the digital movies and show and watch them across a multitude of devices while being stored in cloud-connected devices.
“We believe we’re at an inflection point,” said David Bishop, president of Worldwide Sony Pictures Home Entertainment. “We’ve created an installed base that will grow, and which we think will continue to give us momentum.”