Home Theater Enthusiast
Join Date: Aug 2007
I'm cross posting this here for context as well.
Originally Posted by Dave J from HDD
I finally found the full DEG press release regarding the first half of 2009 (posted below). It appears Video Business used DEG's numbers to produce their marketshare pie charts.
DEG RELEASES MID-YEAR HOME ENTERTAINMENT RESULTS
Home Entertainment Window Remains Stable
With Higher Margin Businesses Continuing To Show Growth
Blu-ray Disc Sales Up 91 Percent In The First Half 2009
LOS ANGELES (July 16, 2009) – DEG: The Digital Entertainment Group released mid-year U.S. sales figures for the home entertainment industry today. Consumer spending for the first half of 2009 in the home entertainment window for pre-recorded entertainment, which includes DVD, Blu-ray Disc and digital distribution, was $9.73 billion, off by 3.9 percent compared to the same period last year. Due to the favorable impact of the mix shift on margin, the home entertainment window's net operating profit contribution was down 2.2 percent.
Overall, the home entertainment window continues to show signs of stability. Consumer spending and net contribution showed a notable improvement in the second quarter 2009 versus the first quarter with total consumer spending on packaged media (sellthrough and rental) down less than 5.6 percent. Although consumer spending on sellthrough packaged media was down 13.5 percent in the first half of 2009, this was partially offset by the growth of Blu-ray (up 91 percent to $407 million) and digital distribution (up 21 percent to $968 million which includes $196 million for electronic sellthough). Furthermore, rental spending was up 8.3 percent for the first half of 2009, boosted by an increase in Blu-ray rental spending, which was up 62 percent.
“Despite an extraordinarily challenging marketplace, the home entertainment sector continues to be remarkably stable overall, particularly with the growth of higher margin businesses like Blu-ray and digital distribution,” said Ron Sanders, President, DEG and President, Warner Home Video. “While home entertainment is down compared to last year, the growth we saw in the second quarter is encouraging.”
Not surprisingly, consumer spending in the U.S. was down two percent relative to last year. According to the U.S. Census Bureau, overall retail sales were down 10 percent for May compared to the same period last year. With unemployment doubling since 2007 to 9.5 percent, consumer confidence is at its lowest point in 15 years. The Hollywood-based trade group also noted that the influx of tax rebate checks that were distributed in May of 2008 resulted in a temporary lift in consumer spending for the first half of 2008. These rebate checks were not distributed in 2009.
“The overwhelming satisfaction expressed by consumers with regard to Blu-ray shows great promise to the industry’s economic future and we are also optimistic regarding their appetite toward digital technologies,” said Bob Chapek, Chairman, DEG and President, Walt Disney Studios Home Entertainment. “Both formats, converging together and resulting in one cohesive consumer experience, will present an opportunity for the industry to return to growth and eclipse our previous benchmarks.”
The DEG compiles quarterly sales data for various products within the home entertainment category, including Blu-ray, DVD and HDTV. The industry association compiles its data based on input from member companies, retailers and industry association tracking sources.
BLU-RAY MARKET GAINS MOMENTUM
According to figures compiled by the DEG with input from content providers and retailers, Blu-ray Disc sales were hugely popular at retail with sales up some 91 percent in the first half 2009. According to figures compiled by Swicker & Associates on behalf of the DEG, nearly 20 million Blu-ray discs shipped to retail in the second quarter of the year – a growth of 57 percent over the same period last year. There was 79 percent growth for the first half of the year compared to the same period last year.
During the first half of 2009, Blu-ray Disc hardware sales exceeded two million units, an increase of almost 25 percent over the same period last year. This brings the total installed base of Blu-ray devices in U.S. homes to nearly 11 million units. These include both PlayStation 3 consoles, along with a wide variety of set-top players that are available as either stand alone models or combined with home theater systems.
A number of Blu-ray products can also support digital media and nearly 75 percent are BD-Live compatible. Additionally, sales of Blu-ray compatible PCs are experiencing strong growth.
Additionally, according to figures compiled by the DEG based on data from CEA, retailers and manufacturers, more than 10 million HDTVs were sold to consumers in the first half of 2009. Household penetration of HDTVs in the U.S. is at approximately 44 million, up 13 percent from the end of year 2008, representing 38 percent of all U.S. households. Approximately 27 percent of all HDTV owners have more than one set.
DVD U.S. HOUSEHOLDS TOPS 92 MILLION
According to figures compiled by the DEG based on data from CEA, retailers and manufacturers, nearly five million DVD players sold to U.S. consumers in the second quarter of 2009.
Since launch in spring 1997, more than 260 million DVD players, including set-top and portable DVD players, Home-Theater-in-a-Box systems, TV/DVD and DVD/VCR combination players, have sold to consumers, bringing the number of DVD households to approximately 92 million (adjusting for households with more than one player). The DEG estimates that 65 percent of DVD homes have bought more than one player.
Includes set-top and portable DVD players, Home-Theater-in-a-Box systems, TV/DVD and DVD/VCR combination players
DVD HARDWARE SALES IN U.S. (in millions of units)
Q 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
1Q .030 .094 .358 1.350 2.220 3.565 4.858 6.855 7.741 7.852 8.350 5.30 5.80
2Q .079 .149 .611 1.435 2.404 3.750 5.506 6.057 6.006 6.676 6.396 4.98 4.90
3Q .077 .244 .880 1.550 2.537 4.740 6.470 6.593 6.250 6.831 6.139 5.20
4Q .119 .459 1.701 5.542 9.501 13.058 16.900 17.621 14.343 12.512 12.633 9.50
.305 .946 3.550 9.877 16.662 25.113 33.734 37.126 34.340 33.871 33.518 24.9 10.7
DEG: The Digital Entertainment Group
DEG: The Digital Entertainment Group is a Los Angeles-based, industry-funded nonprofit corporation that advocates and promotes the many consumer benefits associated with various home entertainment products, including both physical and digital media on a variety of platforms. The DEG helps provide information and perspective about the home entertainment industry. The DEG also offers a forum for member companies to engage in ongoing discussions concerning various opportunities related to promoting established categories, evaluating and discussing new entertainment platforms and investigating supply chain efficiencies. The DEG can be reached at 310-888-2201, via email at [email protected]entinfo.com or through its Web site at www.degonline.org.
It appears they are including the PS3 when they refer to "Blu-ray Disc hardware sales exceeded two million units". According to NPD data, PS3 unit sales were 1,119,900 during the first 6 months of the year.
PS3 unit sales
We also know, via NPD, that blu-ray SAL player sales were 400,000 during Q1.
PORT WASHINGTON, N.Y., May 6, 2009 – According to the latest point-of-sale (POS) tracking data from The NPD Group, a leading market research company, Blu-ray Disc (BD) video technology is moving further into the mainstream. First quarter (Q1) sales of stand-alone Blu-ray players in the U.S. grew to more than 400,000 units, an increase of 72 percent over Q1 2008. Dollar sales increased 14 percent, to reach $107.2 million according to NPD’s retail tracking service.
It would then stand to reason that blu-ray SAL player sales were approximately 500,000 during Q2.
In regards to digital's reported $968 million in revenue, NPD provides some insight on how that dollar amount may break down between streaming/digital downloads and VOD. According to their data, VOD represents 75% ($726 million) of the total revenue while streaming and digital downloads represent 25% ($242 million). Of course those numbers include both SD and HD sales and rental revenue.
PORT WASHINGTON, NEW YORK, May 12, 2009 – According to The NPD Group, a leader in market research for the entertainment industry, watching movies and other video content on DVD and Blu-ray Disc (BD) comprises the lion’s share of home-video acquisition and viewing, even as newer digital methods are beginning to gain a foothold in the consumer market. In fact DVD and BD sales and rentals represented 88 percent of consumer spending on home video content, based on a survey that asked about home video consumption over the previous three months.
Results from NPD’s March 2009 update to the “Entertainment Trends In America” consumer tracking study, which provides an in-depth look at shifts in entertainment consumption, revealed that the average U.S. home video consumer reported spending an average of $25 per month on all types of home video purchases and rentals. When it comes to spending on home video content: 63 percent was spent on DVD purchases; 7 percent on BD purchases; 18 percent on DVD/BD rentals from retail stores, subscriptions or kiosks; 9 percent on video on-demand (VOD); and 3 percent on digital downloads and online streaming.
Nice summary. I'm on the road, but I'll post the whole post over to the Nielsen and Blu-ray sales thread soon.