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Oz home entertainment: Digital up, physical down

February 2, 2015

As the Australian home entertainment market awaits the March 2015 arrival of online entertainment streaming service Netflix to compete with existing players such as Stan, Quickflix and Presto, figures from the Australian Home Entertainment Distributors Association (AHEDA) suggest the sector was worth A$1.115 billion in 2014, down from A$1.202 billion the previous year.

Physical revenues were down by 10 per cent to A$951.3 million from A$1.059 billion while online sales and rentals increased by an estimated 11 per cent to a record A$163.5 million.

DVD and Blu-ray revenues both fell by 10 per cent and Blu-ray penetration remains static at 16 per cent. Electronic Sell Through (EST) movies showed the strongest growth, increasing 26 per cent in the year to October.

According to AHEDA CEO Simon Bush, as the market matures it is seeing the declines in physical disc sales tapering, with the consumer proving yet again that new and exciting TV and movie content continues to perform well, showing why Australian retailers continue to support the category.

“2015 is shaping up to be an exciting year in the continued evolution of the home entertainment marketplace, with SVoD service Stan launching last month to join Foxtel’s Presto and Quickflix, with Netflix starting in March,” he advised.

“AHEDA strongly supports efforts by the Federal Government to combat the high levels of film piracy we see in this country and welcomes efforts to establish a notice scheme as well as injunctive relief mechanisms to block web sites whose primary purpose is to promote piracy,” he declared.

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