DEG: Tough Comparisons in Q1; Blu-ray, Digital Businesses Still Grow

May 2, 2011 · Posted in M&E Daily, Today's M&E Connections 

Releasing home entertainment spending figures for the first quarter of 2011, DEG: The Digital Entertainment Group says that studios faced a difficult comparison with last year’s blockbuster-heavy Q1, as total home entertainment spending decreased 9.8% year-on-year to $4.2 billion.

Sell-through of DVDs and other packaged goods was down by a total of 20% during the quarter, to $2.1 billion. However, the trade group notes that the box-office value of the 2011 quarter’s release slate was 25% less than that during the same period in 2010. In addition, unlike last year’s quarter, Q1 2011 lacked the Easter holiday weekend, which according to the group remains a considerable home entertainment marketing opportunity.

Blu-ray disc sales continued to grow, up by nearly 10% from Q1 in 2010, while sales of Blu-ray players (including PlayStation 3 consoles) increased by 13% during he quarter. The total household penetration of Blu-ray compatible devices now stands at nearly 30 million U.S. homes.

Digital businesses are also increasing. Video-on-demand products were worth $473.2 million to the industry during the quarter, an 8.7% increase from Q1 2010. Electronic sell-through sales increased 10.4% to $140.6 million.

The DEG adds that sell-through of both physical and digital home entertainment products has picked up by 20% year-over-year in the first few weeks of the second quarter.

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