A recent report from Merrill Lynch reports that DVD rentals and sales are expected to decrease to make room for the soon to be exploding Video on Demand business. As I mentioned earlier, the ingredients in the pie are shifting, decreasing in current modes of physical media distribution and increasing in digital distribution. Comcast, the US’ largest cable operator is expected to land 40 – 50 % of the projected $2.4 billion VOD revenues by 2011.
Growth Pains For DVD Rentals KENRADIO.COM
DVD rentals rose strongly from 2005′s $6.5 billion to $7.5 billion, while DVD sales inched up from $16.3 billion in 2005 to $16.6 billion last year, according to the Digital Entertainment Group. Overall, $24.2 billion was spent on DVD and VHS, lower than in 2004 ($24.5 billion) and 2005 ($24.3 billion). VHS accounted for just $100 million in spending last year; as recently as 2004. Since DVD arrived in 1997, more than 200 million players have been purchased in the USA, and about 88 million homes have at least one. Last year, consumers bought 33 million DVD players.
The times are a changing as broadband allows faster downloads and new HD formats allow new experiences. Studios’ hopes that movie lovers would embrace new super-sharp discs have been hampered by dueling formats. Sony and most studios support Blu-ray Disc; Universal is putting out its films only on the competing HD DVD format. Warner and Paramount release films on both.
DVD rentals rose strongly from 2005′s $6.5 billion to $7.5 billion, while DVD sales inched up from $16.3 billion in 2005 to $16.6 billion last year, according to the Digital Entertainment Group. Overall, $24.2 billion was spent on DVD and VHS, lower than in 2004 ($24.5 billion) and 2005 ($24.3 billion). VHS accounted for just $100 million in spending last year; as recently as 2004. Since DVD arrived in 1997, more than 200 million players have been purchased in the USA, and about 88 million homes have at least one. Last year, consumers bought 33 million DVD players.
The times are a changing as broadband allows faster downloads and new HD formats allow new experiences. Studios’ hopes that movie lovers would embrace new super-sharp discs have been hampered by dueling formats. Sony and most studios support Blu-ray Disc; Universal is putting out its films only on the competing HD DVD format. Warner and Paramount release films on both.
