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2009 Total Consumer Spending By Format

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Old 07-30-2009, 10:03 PM   #1  
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Arrow 2009 Mid Year Total Consumer Spending By Format



This is a new pie chart from Video Business

http://www.videobusiness.com/info/CA6673480.html

Last edited by Lee Stewart; 07-30-2009 at 10:52 PM.. Reason: fix title again!
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Old 07-31-2009, 11:16 PM   #2  
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It's nice that they finally broke off blu-ray rental revenue from DVD rental revenue so we no longer have to speculate how much it is any more.
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Old 07-31-2009, 11:25 PM   #3  
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It's nice that they finally broke off blu-ray rental revenue from DVD rental revenue so we no longer have to speculate how much it is any more.
Yes - I agree - it does look like a very comprehensive chart.
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Old 08-01-2009, 12:57 PM   #4  
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I'm impressed by the size of DVD rentals.
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Old 08-01-2009, 02:16 PM   #5  
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I'm impressed by the size of DVD rentals.
I am not. I know I was buying instead of renting on most titles on SD DVD since the cost of renting was so high with local stores. Once I changed to Netflix I mostly stopped buying all but great movies on SD DVD. I started out a little crazy with HD DVD & BD buying at the start but I almost only rent now on BD. I have not bought ONE BD movie since 12/2008. I will likely only buy about 10-20 titles on BD this year, whereas I bought that many within a month or so on HD DVD in the beginning months I owned HD DVD.

I have a ton of SD DVDs i will likely never watch again and all I do is look at them when I start thinking about going crazy buying BDs, especially when i can rent them for under $2.00 each through Netflix.
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Old 08-01-2009, 08:19 PM   #6  
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I'm cross posting this here for context as well.

Quote:
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.

http://www.hollywoodinhidef.com/blog_detail.php?id=291

Quote:
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.

Code:
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
YEARLY TOTAL 
   .305 .946 3.550 9.877 16.662 25.113 33.734 37.126 34.340 33.871 33.518 24.9 10.7
TOTAL
(since 
launch) 
263.5
Includes set-top and portable DVD players, Home-Theater-in-a-Box systems, TV/DVD and DVD/VCR combination players
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] 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.

Code:
PS3 unit sales
January	        203,200
February        276,000
March	        218,000
April	        127,000
May             131,000
June            164,700
Total	      1,119,900
We also know, via NPD, that blu-ray SAL player sales were 400,000 during Q1.

http://www.npd.com/press/releases/press_090506.html

Quote:
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.

http://forums.highdefdigest.com/newr...treply&t=82236
Quote:
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.

EDIT: completed
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Old 08-01-2009, 10:50 PM   #7  
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Originally Posted by PFC5 View Post
I am not. I know I was buying instead of renting on most titles on SD DVD since the cost of renting was so high with local stores. Once I changed to Netflix I mostly stopped buying all but great movies on SD DVD. I started out a little crazy with HD DVD & BD buying at the start but I almost only rent now on BD. I have not bought ONE BD movie since 12/2008. I will likely only buy about 10-20 titles on BD this year, whereas I bought that many within a month or so on HD DVD in the beginning months I owned HD DVD.

I have a ton of SD DVDs i will likely never watch again and all I do is look at them when I start thinking about going crazy buying BDs, especially when i can rent them for under $2.00 each through Netflix.
Reads a lot like what I've done...

As I mentioned in a earlier thread...

My last purchased HD-DVD was "Star Trek, Original Series, Season 1" sometime in December '08.

My last purchased SD-DVD was "Iron Man", around the same time.

I vowed (another New Years resolution...) to completely curb all spending on HD-SD-DVD's, which I can honestly say I've kept!.

I don't rent anything on DVD (including Netflix & Red Box) as all my rental's for 2009 thus far have been on VuDu & VOD.

I vowed to make a drastic reduction on my in-home video collection, except for a core of about 100 or so must have essentials (39 HD-DVD's the remainder SD-DVD's and burned DVD's and calibration disc's) which I haven't quite achieved yet.

While I still find myself wandering over to electronics section at my local Wally World to check out their latest wares & sales, I haven't experienced a desire to actually buy anything ditto for Best Buy.
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Old 08-02-2009, 09:53 AM   #8  
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I don't rent anything on DVD (including Netflix & Red Box) as all my rental's for 2009 thus far have been on VuDu & VOD.
And how is this saving money?

A BD player and online/brick & mortar rentals would be cheaper than VUDU and VOD.

Last edited by vikingfan; 08-02-2009 at 10:01 AM..
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Old 08-02-2009, 10:21 AM   #9  
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Originally Posted by PFC5 View Post
I am not. I know I was buying instead of renting on most titles on SD DVD since the cost of renting was so high with local stores. Once I changed to Netflix I mostly stopped buying all but great movies on SD DVD. I started out a little crazy with HD DVD & BD buying at the start but I almost only rent now on BD. I have not bought ONE BD movie since 12/2008. I will likely only buy about 10-20 titles on BD this year, whereas I bought that many within a month or so on HD DVD in the beginning months I owned HD DVD.

I have a ton of SD DVDs i will likely never watch again and all I do is look at them when I start thinking about going crazy buying BDs, especially when i can rent them for under $2.00 each through Netflix.
It seemed like it was just a short while ago that I was reading reports of Hollywood and Blockbusters rental stores closing. Also some reports of Netflix being in some financial trouble as well.
And now, looking at that chart, renting eats up about 1/3 of that revenue pie. An amazing recovery.
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Old 08-02-2009, 11:36 AM   #10  
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And how is this saving money?

A BD player and online/brick & mortar rentals would be cheaper than VUDU and VOD.
Saving money has little to do with it...I'm totally into the convienence-factor.

Vudu's catalog of movies translates into a collection I (and most everyone else) could only dream about owning and without the logistic's problem of storage...

True their HD offerings aren't quite BluRay quality, but really it's not that far removed either and the cost factor is about the same as renting the BR movie at our local Hollywood Video (currently around $6.35 per movie) and I don't have to pick-up and deliver said movie and my viewing window is much longer (30 days vs 5 day rental)...

And please note that digital downloads have increased nicely...
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Old 08-02-2009, 03:51 PM   #11  
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Vudu's catalog of movies translates into a collection I (and most everyone else) could only dream about owning and without the logistic's problem of storage...
You don't own anything, you have rental access, same as if you used netflix, blockbuster or even the library (for free).

Quote:
Originally Posted by JoeRoscoe View Post
True their HD offerings aren't quite BluRay quality, but really it's not that far removed either and the cost factor is about the same as renting the BR movie at our local Hollywood Video (currently around $6.35 per movie) and I don't have to pick-up and deliver said movie and my viewing window is much longer (30 days vs 5 day rental)...
No extras, lesser quality audio/video seems pretty well removed here.
24hrs to finish watching a VUDU movie once you start versus 5 days to finish what you started watching with the BD rental

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And please note that digital downloads have increased nicely...
Every digital download source combined doesn't match the % growth of either BD rentals or purchases.
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Old 08-02-2009, 05:05 PM   #12  
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Originally Posted by vikingfan View Post
You don't own anything, you have rental access, same as if you used netflix, blockbuster or even the library (for free).



No extras, lesser quality audio/video seems pretty well removed here.
24hrs to finish watching a VUDU movie once you start versus 5 days to finish what you started watching with the BD rental



Every digital download source combined doesn't match the % growth of either BD rentals or purchases.
Points well taken...but...

As PFC5 mentioned in his post, he has A TON of SD-DVD's he may never watch again, again sounds familiar to someone such as I who began home video collecting in 1983, I don't care what you buy (own) a point in time WILL arrive when that video will be on the "Seldom-Seen List"...

Extra's only matter IF they're well done (many are not), and besides, most don't buy a particular video for the extra's...it's the movie that counts...

Have you tried VUDU?...if not you may be pleasently surprised as I was...

When you rent a video how many times do you usually watch it?...for most it's only once (or maybe twice)...and how many times in 24 hours can you watch a video before growing tired of it?, let alone over 5 days...

Streaming HD video/audio hasen't reached ANYWARE near it's potential yet, when it does....
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Old 08-03-2009, 04:32 PM   #13  
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Points well taken...but...

As PFC5 mentioned in his post, he has A TON of SD-DVD's he may never watch again, again sounds familiar to someone such as I who began home video collecting in 1983, I don't care what you buy (own) a point in time WILL arrive when that video will be on the "Seldom-Seen List"...

Extra's only matter IF they're well done (many are not), and besides, most don't buy a particular video for the extra's...it's the movie that counts...

Have you tried VUDU?...if not you may be pleasently surprised as I was...

When you rent a video how many times do you usually watch it?...for most it's only once (or maybe twice)...and how many times in 24 hours can you watch a video before growing tired of it?, let alone over 5 days...

Streaming HD video/audio hasen't reached ANYWARE near it's potential yet, when it does....
I often fall asleep while watching a movie and the next chance i get may well be after the 24 hours since I started to watch it 9or someone else in the family watched it), so Vudo wouldn't be a good fit for my family. I am paying only about $2.00 or less to rent only BD movies from Netflix depending on how fast they get watched and returned, so this fits much better for me and my family's viewing habits. If only they could stop changing the encodings so I do not have to delay watching a movie with the wife or family because I have to go searching for the firmware updates I would be much happier.
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Old 08-03-2009, 11:20 PM   #14  
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If only they could stop changing the encodings so I do not have to delay watching a movie with the wife or family because I have to go searching for the firmware updates I would be much happier.

Just use the sons PS3, problem solved. Never had a title not play.
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Old 08-04-2009, 06:18 PM   #15  
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I often fall asleep while watching a movie and the next chance i get may well be after the 24 hours since I started to watch it 9or someone else in the family watched it), so Vudo wouldn't be a good fit for my family. I am paying only about $2.00 or less to rent only BD movies from Netflix depending on how fast they get watched and returned, so this fits much better for me and my family's viewing habits. If only they could stop changing the encodings so I do not have to delay watching a movie with the wife or family because I have to go searching for the firmware updates I would be much happier.
It's certainly not for everyone, it's an aquired taste that won't disappoint...

Notice though that several high profile electronic manufacturer's are including VUDU streaming capability into some current (LG HDTV) and future models (a few un-named BluRay manufacturer's), check it out here...

http://www.vudu.com/movies/

If you buy one of these new models that offer VUDU streaming,it will only cost about the same as a new release BluRay movie (around $25.00 or so) to try out "The VUDU Experience"...
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