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Blu-ray Continues to Grow, Sales Up 15%

Posted August 7, 2013 03:54 PM by Webmaster

Blu-ray DiscAccording to a new report released by The Digital Entertainment Group (DEG), during the first half of the year revenue generated from sales of Blu-ray discs is up 15% compared to the same period last year. Overall consumer spending on home entertainment also grew more than 2% to $8.6B.

According to the same report, sales of new releases on Blu-ray are up 19%, while sales of catalog titles on Blu-ray are up 8% compared to the same period last year.

Consumers have also purchased more than five million Blu-ray compatible devices during the first half of the calendar year. The total number of Blu-ray compatible devices in American homes is now approximately 61 million.

Overall discs sales (DVD and Blu-ray), however, were down 4.7%.

Digital revenue in the first half of the year is up more than 24%, while EST revenue is up more than 50%.

Source: HomeMediaMagazine | Permalink | United States [Country settings]

News comments (28 comments)

  Aug 07, 2013
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Great news. Now when all the poor suckers who got Xbox 360's finally join the new millenium and get Blu-Ray on the Xbox One or PS4, Blu-Ray will be viewed by millions more. I work with a dude who got a 360 instead of a PS3 like 5 years ago and he still hasn't seen a single Blu-Ray movie... I call him names because of this outrage.

  Aug 07, 2013
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I wish those people that think "Physical Media is dieing or dead" would read this. I do not see that, and hope never do.

Blu-Ray 4 Life.

  Aug 07, 2013
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This is the most important sentence IMO: "Overall discs sales (DVD and Blu-ray), however, were down 4.7%."

To the extent BD is growing, it is not doing so quickly or substantively enough to offset overall disc market shrinkage.

  Aug 07, 2013
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You wouldn't know it by how the studios are acting.

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  Aug 07, 2013
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Awesome. Once the new gaming consoles come out, it will probably increase much more. Hopefully this means studios will start releasing a lot more older shows/movies on blu ray. I'm definitely hoping for some older tv shows to come out.

  Aug 07, 2013
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Blu rays sales will jump in 2015 once the Xbox One and PS4 become more affordable and the hysteria drops from the holiday season for these also helps that BBY does its upgrade and save program 4x a year

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Blu Titan
  Aug 07, 2013
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The 2nd half of the year will deliver strong sales off Blu-ray disc sales as nothing of significance was released in Q2. .

  Aug 07, 2013
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Not even excerpted by the site but in the original piece: "After a first-quarter gain of 2% for packaged media, overall packaged-media sales were down nearly 13% in the second quarter compared with a year ago . . ."
  Aug 07, 2013
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@blu titan: I see little announced so far for Q3 or Q4 that will reverse this trend. Yes there will be BDs of new movies but the day of the catalogue title on BD is just about over for one big reason. They don't sell and making money is the only thing that the studios understand.

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  Aug 07, 2013
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I will reiterate for the umpteenth time.....I will NEVER stoop to downloading movies. Never. I have ALWAYS preferred physical media everything. I will ALWAYS buy a Blu-ray over downloading anything. Period. If it EVER did come to downloading being the norm (and I hope not in my lifetime), studios would prbably just do like Warner Archive is doing with the MOD Blu-rays. But I don't see it getting to that point. I would rather have a DVD than an HD download.

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  Aug 07, 2013
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@Paul.R.S: You need to read more carefully what is stated: The comparison is six months vs. six months, two halves of two different years. Why? Because the box office fluctuations in terms of performance are better balanced over a longer period of time as opposed to quarters.

Additionally, your point about shrinkage is just as elusive. Why? Because the alternative to physical media that some people are hell-bent on proving is the future, which is not, isn't exactly setting trends on the market.

The reality is simple: The future of the home video market will be one of a variety of different options for the consumer, meaning different revenue streams for the content owners. Not one or the other.

And as far as catalog is concerned, there are plenty of strong titles and plenty of business left for many, many years to come. Eliminating cheap overhead, which is where some adjustments have occurred, should not be surprising. For one, the amount of instructional DVDs that are not being sold again on Blu-ray isn't exactly a reason for concern.

  Aug 07, 2013
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I myself also enjoy having the blu ray copy of the movie and keeping my library. Streaming movies is nice as an alternative but I don't think it is a replacement for the quality of the blu ray copy for movies I want to keep.
  Aug 08, 2013
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this is great news for bluray and physical media. people wanna hold what they have in their hands not on a harddrive that can suddenly crash

  Aug 08, 2013
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This argument has come up again and again over the last few years, where physical media is headed, will it die off to be replaced by streaming video, etc. And it's fine to try and prognosticate what the future will bring-- personally I think just as pro-bassoonist has stated that there will be a variety of options -- ANY way the studios can make money they will, they won't abandon a revenue stream as long as it's in the black.

As for my philosophy as a movie fan, all I know is that I live in the now, I don't live in the future...and right now I'm enjoying the hell out of my Blu-ray collection.
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  Aug 08, 2013
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@reidw.. I guess you didn't look at the numbers for Jaws, E.T., Star Wars, Star Trek, Terminator.. and any other Catalog title.. if you've notice last year and this year their has been a TON of catalog releases for a reason.. studios are taking notice and will continue to put out their libraries.. I hate to say it but your statement is wrong.. Studios make money on releasing catalog titles.. Collectors WANT their favorites movies on BD..

Hunk Golden
  Aug 08, 2013
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Just going by the eye test - it seems that physical media is dying. Stores which sell it are going by the wayside. Borders is out of business. B&N doesn't seem to be doing that well. Whenever I'm in one of the B&N brick-and-mortar locations in IA or WI, they never seem to be busy (and their movie/music sections are totally empty b/c of the high prices they have to charge). Best Buy's movie sections are shrinking, making way for Samsung stations or whatever. I've been pretty active at multiple locations for BB's July/August Upgrade & Save promotion (Dubuque, IA...Davenport, IA...Coralville, IA...East Madison, WI) and the movie sections haven't been busy (nor are they ever when I'm in them).

I think the big stores like Target & Walmart will continue to shrink their movie sections until they have only the new and big ("Avengers") releases. It will move toward streaming. Most people I know don't care to buy movies or fuss with physical disks. They'd rather stream something on Netflix/iTunes/Dish. We love the quality video & audio of Blu-ray. We love the supplements. But we're a rare breed. Most people could give an ish about the highest quality A/V. They'd rather have easy.

And most people have no desire to own 1000 (or however many) movies. Storing them is a pain in the butt. How often does your average person watch a movie after they've bought it?? I think all of us commenting are big fans of physical media and owning our favorite movies. But how many of us are there? One of the first Sundays of the Upgrade & Save promotion this July I was getting my 5 titles at the East Madison, WI Best Buy. The guy who was behind me in line had a couple of Blu's he was buying. He had two friends with him who were ribbing him for buying movies..."What are you going to do in 5 or 10 years when the next thing comes out?" Maybe they'd been burned with big VHS or DVD collections or something. The friend answered the same way I would, saying that this is probably the last physical format (if you include Blu-ray 4K), so it won't become outdated. People will just move to streaming.

I'll continue buying and enjoying Blu-ray, but I don't know many others will (or that Blu-ray will become popular enough to offset the overall drop in physical media ownership).

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  Aug 08, 2013
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Whenever I see arguments with "most people", I lose interest addressing them. A small exception here:

1. "Most people" did not drive the DVD market. Approximately 10% of hardcore buyers/collectors did. And no, I did not come with this observation. A certain gentleman who heads a major studio that sided with HDDVD did. Fact-check it.
2. The market wasn't driven by sales in Borders and B&N. There are statistics that show exactly what percentage these two stores had during the DVD era. Again, fact-check it.
3. Catalog buying has essentially shifted to online vendors. Sales at the above two vendors hardly have any significance.
4. This idea of people moving to streaming (only) is as naive as the notion that the future where people stop buying books is just around the corner.

  Aug 08, 2013
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I find it hard to believe anyone can even bring 'stores' into the argument anymore when A) there are none and B) online retailers have been powering sales for the last 5+ years at least.

Plus the massive surge in gaming has definitely hits sales of both films and music. Kids today just aren't as 'into' music and films as they used to be and if they are, they tend to just download what they want illegally.

As far as 'most people' go, I don't know anyone who downloads movies legally. Music for sure, but not movies.

  Aug 08, 2013
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The sooner DVD dies the better.
  Aug 08, 2013
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We can't get rid of DVDs fast enough. Poor Man's Disc as I like to call it.

  Aug 08, 2013
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I really hope Blu-ray has a few years left. It definitely has more market and appeal than laserdiscs ever did. But, fact is, % of revenue from physical media continues to drop for the major studios. It's anyone's guess how long it remains profitable for them.

Right now, streaming can't completely kill discs because the the high-speed cable and fiber optic infrastructure is under-developed. Cable and wireless providers have a profitable market with little incentive to improve their delivery lines, and the U.S. government isn't really doing much to help.

DVD remains relatively popular, in part at least, because people don't have the money to upgrade. On average, I'd guess that members of this site have more disposable income than most people. If you own thousands, or even hundreds of Blu-rays, then you're among the few that can afford the luxury. And I'm not even including overhead for equipment. This isn't where many many people in the U.S. are at these days. They stream, they rent/borrow DVDs, they download illegally because it's the cheapest, most readily available option when you don't have money.

  Aug 08, 2013
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I continue to tout Blu-ray relentlessly. I've also given at least 5 players as gifts. Digital/streaming will always have a place nowadays with all the tablets and smart phones but for real movie buffs and collectors Blu-ray will be it. I don't know anyone with a "digital" library.
  Aug 08, 2013
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The trouble with a site like this one is that it preaches to the "converted". I'm one of them (which may surprise some of you). It doesn't give a true picture of the state of the market or the level of interest of the general public. All of us here probably have BIG TVs, and seven to nine channel surround sound home theatres (or wish we did) and a collection of a few hundred or more BD discs. I base my projections on what I see around me. Among my friends and family I know of no one who buys BDs or even DVDs. Only a couple have a high def. TV. None have a surround sound system. Each will tell you that they have other priorities for their money. They like my HT but can't see how they can justify the cost. I think they are more representative of the majority of the public and if so the future of BD, HT etc. is not very bright. This may not be what those of you here want to hear but that's how I sadly see things evolving.

  Aug 08, 2013
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I hope bds continue to thrive, I love them & only started collecting them since this Feb. I am far from well-off, but I've invested in bds(also dvds, when warranted for me!) & players, by making it a priority in my disposable income, while sacrificing $$ in other entertainment & recreational choices.

Viva La bds!!!
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  Aug 08, 2013
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@rediw apparently they are no the majority of the public... I guess you're having a hard time understanding what up 15% from last year means

Boothill Gunslinger
  Aug 08, 2013
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@nolfoc: You tell 'em, nolfoc!!!

For the yahoos above, who didn't pay attention to a single word Pro-B said in either of his posts: I guess ignorance is bliss, huh? You shouldn't even be on this site. You should go hang with the "streamers," wherever they may be.
  Aug 08, 2013
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@reidw but aren't you just talking about the attitude that has *always* been prevalent in the HT public market? I'm old enough to still have an extensive (2000+ at its peak) VHS collection, whittled down and superseded somewhat now, but back in the day I was regarded as very peculiar amongst family and friends for having such a large collection, when money could be best spent elsewhere. I certainly didn't know anyone back then who bought anything near the volume of tapes that I used to; in fact generally speaking more people I know seem inclined to buy discs now, perhaps because of their generally lower price. I'm from Australia and I recall if you could buy a movie less than 5 years old on VHS for less than $20, you snapped that sucker up on the spot!

I digress, but when it comes to physical media, you are always pitching to a niche market that can actually be bothered housing and storing the rotten bloody things (lunatics like us!) and I see this more as a mind-set/personality type issue rather than a case of a populace who always use to buy physical media until streaming became an option.

I will say the future of the hire of physical media is in some doubt, but sales will be around for at least a while to go yet. They'll be prying my discs out of my cold dead hands!

  Aug 21, 2013
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@pro-bassonist: Not sure what led to that lengthy prattling on in purported response to my comments but my point was/is simple: The excerpted portion of the HOME MEDIA MAGAZINE article above does not fully/accurately relay what the piece says. I suggest one always click through to read the entire article at the source site.

And my point about "shrinkage" is not "elusive" to anyone who has been watching the pie graph that runs on the front page of HMM representing "Total Disc Sales Revenue" for any length of time. Latest issue (August 12-18) shows that total revenue figure being down 3.5% compared to the equivalent week last year. And this is not about "fluctuations" but rather an overall downward trend. "Fact check it." Simple point. All that other huffing and puffing to show us what a great prognosticator/market analyst you supposedly are was unnecessary.

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