DVD sales plunge 20% as streaming grows

Sales of DVDs have collapsed in the last year falling 20 per cent according to figures released by the Digital Entertainment Group (DEG). Total sales from film-related DVD and Blu-ray discs in Q1 2011 fell from approximately $2.6 billion (Q1 2010) to $2.1 billion in the US.

The DEG said the decline was related to the popularity of films released in the period, with the first quarter of 2010 having a stronger selection of films than the start of 2011. But the DEG also suggest consumers are shifting their spending away from buying films in favour of streaming them online or watching them via film subscription services such as, Netflix.

Spending on renting DVDs in stores such as Blockbuster, also collapsed, falling 36 per cent in the first quarter to $440 million, according to the DEG.

Spending on streaming and subscription services had risen 33 per cent to $523 million in the period, the DEG said. “The industry has proved resilient, with modest gains posted in a number of key areas. The home entertainment business is morphing, as increased enhancements to technologies like Blu-ray Disc, Blu-ray 3D and new digital service offerings are made available.”

Total spending on home entertainment, which includes DVD and Blu-ray rentals and sales, together with electronic downloading, fell 10 per cent to $4.7 billion.

Several studios are now planning to sign films for release on ‘super premium VoD’ with DirecTV at the same time as cinema release.

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