Home entertainment spending up slightly in first half; digital models account for 29% of overall market

by Terence Keegan

The home entertainment pie is growing again — albeit slightly, according to DEG: The Digital Entertainment Group. But how are slices of the pie split between the segment’s various physical and digital distribution models?

Studios and other home entertainment distributors are toasting the increase in consumer spending on Blu-ray discs, DVDs, and digital formats during the first six months of 2012. Yet while the gain may signify further stabilization of the home entertainment market’s overall value, the market remains in the midst of dramatic shifts between physical and digital business models.

The $8.4 billion in Blu-ray and DVD sales, downloads, disc rentals, video-on-demand transactions, and streaming subscriptions between January and June 2012 marks a 1.43% increase in revenue from the same period in 2011, DEG says.

Total packaged media revenues — including sales of DVD and Blu-ray discs and rentals of discs through brick-and-mortar outlets, subscription services, and kiosks — accounted for 71.25% of total home entertainment revenues in the first half of 2012, according to calculations made by M&E Daily from the DEG data. But for the same period in 2011, the packaged-goods side of the business claimed an 83.59% share.

Meanwhile, digital models — which include paid downloads of movies and TV series, transactional video-on-demand through cable and satellite TV providers, and streaming video-on-demand services — have quickly grown to account for more than a quarter of the overall market (28.75%).

With overall revenues growing, the shift from physical to digital is not entirely a zero-sum game. But some models are growing (or declining) more rapidly than others.

On the physical side, Blu-ray disc sales continued to increase, with first-half revenues up 13.3% compared to the same period in 2011. Overall packaged media sell-through revenues for the first six months of 2012 fell $140 million short of revenues for the same segment during the first six months of 2011.

What seems to have especially accelerated the shift from physical to digital spending is Netflix’s overt de-emphasis of its discs-by-mail service. The size of the discs-by-mail market for the first six months of 2012 ($672 million) is less than half of what it was during the first six months of 2011 ($1.356 billion), according to the DEG.

Streaming subscription services from Netflix and other companies accounted for $1.1 billion in revenues for the first six months of 2012, nearly half (46%) of the total consumer spending on digital models for the period. Electronic sell-through and transactional video-on-demand both posted double-digit gains in consumer spending year over year.

UltraViolet is serving as a bridge for some consumers between physical and digital models, with the DEG noting that some 4 million households to date have created accounts for digital access to movies they purchased (largely on disc). The trade group did not provide estimates for UltraViolet sales for the first half of the year, nor did it specify whether it accounts for spending on UltraViolet titles as packaged goods sell-through or electronic sell-through.

‘Academy on UltraViolet’ Heading to London

Capitalizing on the success of the inaugural Academy on UltraViolet last month in Los Angeles, DEG: The Digital Entertainment Group and the Media & Entertainment Services Alliance (MESA) have announced the Academy on UltraViolet London. The event is set for September 5 at the Park Plaza Westminster Bridge Hotel in London.

The Academy on UltraViolet: London will provide an authoritative update on the latest technology developments that are driving the implementation and advancement of UltraViolet in England with an eye toward expansion to the greater United Kingdom and Europe.

“We are very encouraged by the growth we are seeing in UltraViolet, and the number of users continues to rise exponentially as more and more consumers begin to discover the flexibility and convenience of digital and the added value it brings to ownership,” says Ron Sanders, President, Warner Home Video and President, DEG: The Digital Entertainment Group. “Consumers want the ability to access the content they own from anywhere, on any device, and UltraViolet is the simplest and most cohesive way for the industry to deliver that functionality.”

The Los Angeles event attracted upward of 250 executives from studios, consumer electronics manufacturers, retailers and service providers, who spent the day trading insights on how to drive consumer adoption of the UltraViolet digital locker system initiative.

In addition to topics such as “Marketing UltraViolet,” “Evolving the UltraViolet User Experience,” and “Level Setting the UltraViolet Ecosystem,” the London event will feature perspectives from regional retailers and hardware companies.

For program information, or to register for the event, visit www.ultravioletacademy.com/london.

DEG: Blu-ray Sales Grow 20 Percent in 2011; Streaming Subscriptions Near $1 Billion in U.S.

Annual  U.S. consumer spending on Blu-ray discs topped $2 billion for the first time in 2011, while consumer takeup of video-on-demand and other digital services continued to grow, according to data released Tuesday by DEG: The Digital Entertainment Group.

Total U.S. home entertainment  spending still declined by 2 percent from 2010 to $18 billion, DEG reports. (The new data reflects a restatement of the 2010 total spending figure, from $18.8 billion to $18.4 billion.) But the trade group proclaims that studios’ home entertainment business has “stabilized,” with spending on high-margin products such as Blu-ray sell-through, electronic sell-through, and video-on-demand all having increased.

Video-on-demand spending increased by 6.7 percent from 2010, to approximately $1.87 billion, while download sales of movies and other video programs increased by 9 percent to $553.67 million.

The DEG also broke out the value of streaming video subscription services in its 2011 report: U.S. consumers spent $993.57 million on the likes of Netflix during the year.

While the combined value of digital sell-through and rental services grew to $3.4 billion, packaged goods like Blu-ray and DVD continue to make up the lion’s share of home entertainment business ($14.6 billion). Sales of Blu-ray and DVD discs continued to be the single largest business segment, at $8.95 billion, despite suffering a 13 percent decline from 2010’s total.

DEG Honors Apple as ‘Digital Retailer of the Year’

Honoring home entertainment marketers and retailers at its 15th annual CES reception, DEG: The Digital Entertainment Group names Apple as the first “Digital Retailer of the Year.”

“DEG members wanted to award the retailer for iTunes which has become one of the largest sellers of transactional digital content in the world, and Apple’s devices – from the iPhone, to the iPad, to the Apple TV – have helped tens of millions of consumers worldwide make the enjoyment of digital video in the home and on the go a reality,” the association said in a statement. Other retailers receiving DEG honors this year include Best Buy for its promotion of Blu-ray, 3D and smart TVs, and other hardware technology; and Target for the mass merchant’s “unparalleled excellence in the display and promotion” of Blu-ray software.

The trade group also bestows three awards in memory of the DEG’s founding chairman, Emiel N. Petrone, marking innovation in digital entertainment. Panasonic’s DMP-BDT310 3D Blu-ray Disc Player took the award for Best Physical Media Product, while Pioneer’s Elite Music Tap System (X-SMC4-BK) took honors as Best Digital Media Product  and Sony Electronics’ VPL-VW1000ES Projector won Most Innovative Home Entertainment Product.

Finally, the DEG marked creative excellence in Blu-ray Disc titles, with a judging panel of reviewers and industry reporters from trade, entertainment and daily consumer news organizations considering titles for overall sound and picture quality as well as value-added features. The DEG Creative Excellence Award Winners for 2011 include:

Theatrical Title of the Year: “Harry Potter and the Deathly Hallows: Part 2,”

Warner Bros. Home Entertainment Group;

Classic Title of the Year (tie): “Ben Hur: Ultimate Collector’s Edition,” Warner Bros. Home Entertainment Group and “Star Wars: The Complete Saga,” Twentieth Century Fox Home Entertainment;

Music Title of the Year: “AC/DC: Let There Be Rock,” Warner Bros. Home Entertainment Group; and

3D Title of the Year, “Rio,” Twentieth Century Fox Home Entertainment.

Hollywood Technologists to Showcase Latest Blu-ray Innovations at Blu-Tech Summit, Dec. 7, 2011 in L.A.

With Blu-ray sales up 58 percent and over 33.5 million U.S. homes Blu-ray equipped, the high-definition disc format continues to flourish amidst rumblings of the demise of physical media and rise of digital downloads. However, there’s more to Blu-ray than just HD and there’s even more to come, as indicated by next month’s first Blu-Tech Summit, Dec. 7 at the Hilton Los Angeles in University City, Calif.

This half-day technology summit will provide updates and previews of new BD features, workflows and technologies as presented by leading Hollywood Blu-ray developers, engineers, technologists, and producers.

“There’s still plenty yet to come from BD, and some of the smartest minds in Hollywood are hard at work on new BD-based technologies and production workflows,” said Conference Chair Guy Finley. “We’ll be covering behind-the-scenes advancements that will drive the format’s continued evolution, while expanding focus on emerging opportunities for packaged media.”

Sessions will include:

• How Consumers are Experiencing BD: What BD Producers Need to Know

• There’s a (Blu-ray) App for That:  A BD Programmer’s Guide

• Blu-ray Goes Over-The-Top (OTT): Rewiring the Content Delivery Ecosystem

• Here Comes 4K: Next-Gen Blu-ray Workflows

• The 2nd Screen for BD: Producing for a Multiscreen Market

• Perfecting the Art of 3D Blu-ray Production

• Blu-ray and the Cloud: A Behind-the-Scenes Report on UltraViolet

• Views from the Plant: Developments in BD Replication and Packaging

The Blu-Tech Summit is produced by the Media & Entertainment Services Alliance (MESA) in cooperation with DEG: the Digital Entertainment Group. It is sponsored by THX, BluFocus, Jargon Technologies, RCDb, Testronic Labs, Savvis, Cinema Craft and Fortium. Association and media partners include Variety, CDSA, The Hollywood Post Alliance and Digital2Disc.

To register and for regular program updates visit: www.BluTechSummit.com.

Catalog Titles Boost Blu-ray Growth: DEG

Sales of Blu-ray discs rose by double digits during the third quarter of 2011, with catalog titles continuing to post particularly strong growth, according to DEG: The Digital Entertainment Group.

Blu-ray sell-through during the quarter increased by 58 percent from the same period in 2010. Sales of catalog titles on Blu-ray continue to increase; Lucasfilm and Fox’s “Star Wars: The Complete Saga on Blu-ray,” for example, sold 515,000 units in North America during its first week of release in September, representing a value of $38 million.

Third-quarter consumer spending on electronic sell-through (EST), meanwhile, increased by almost 13 percent from the same period in 2010, DEG says.

Home entertainment spending has yet to reach equilibrium between Blu-ray and digital increases and DVD declines, however. Home entertainment sales for the first three quarters of 2011 (including EST) stand at $6 billion, down 13 percent from the same period in 2010. Rentals for the first three quarters of the year, including video-on-demand transactions, are up by 3.4 percent from 2010, to $5.78 billion.

More data from the DEG is available here.

Blu-ray Sales Rise, Helping Studios Post Revenue Gain: DEG

An increase in Blu-ray sales has helped studios post their first quarterly gain in home entertainment revenue in more than three years, according to DEG: the Digital Entertainment Group.

In a report set for release on Monday, the DEG notes the home entertainment industry earned $3.9 billion in the third quarter of 2011, a 5 percent increase from about $3.7 billion during the same period of 2010 (via The New York Times). Blu-ray sales for the first three quarters of 2011 are expected to top $1.23 billion, a 23% increase from $1 billion during the same period last year.

More on the DEG’s latest figures in Tuesday’s M&E Daily.

Entertainment ID Registry Gains Support

Major media and entertainment companies backing the Entertainment ID Registry (EIDR) announced on Wednesday that they have begun to integrate the media identification and tracking system into their digital distribution operations.

Along with news of the EIDR implementations underway at Comcast, Disney, Warner Bros., Rovi, and the New York Times Co.’s Baseline, industry trade organization the Hollywood IT Society (HITS) — in conjunction with the Digital Entertainment Group (DEG) — announced an effort to drive adoption of the standard among studios, post-production houses, and other entertainment service providers.

Warner Bros. is using EIDR to streamline the company’s delivery of digital content to online retailers, while Disney says that it has already incorporated EIDR into the studio’s internal digital workflows. Comcast reiterates that its digital video ecosystem will support EIDR identification, while Rovi says that it plans to add EIDR IDs into its metadata feeds as early as the fourth quarter of this year. Baseline, which provides film and TV data to the entertainment industry, also says that it will add EIDR IDs to its products in the coming months.

The DEG and HITS trade groups pledge their help in broadening the technology’s adoption among stakeholders in movie and television distribution.

“Establishing a universal media ID is a fundamental requirement for the digital supply chain in order to distribute and monetize content and achieve it with efficiency and customer involvement,” says Jeff Mirich, senior vice president and chief information office for The Walt Disney Studios, in a statement.

EIDR representatives will be sharing more information about the standard at the upcoming IBC trade show in Amsterdam and at the Entertainment Supply Chain Academy’s ESCA Europe conference in London Sept. 21-22.

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

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.

ESCA Panel To Chart ‘Physidigital’ Supply Chain

Supply chain executives from both physical and digital media distribution are set to trade perspectives on how to integrate the two sides of the ever-evolving entertainment business at the annual ESCA EDGE conference in Los Angeles.

Speakers at the “Navigating the Path to Physidigital” panel include:

• Steve Dahl, Senior Vice President, Worldwide Operations & IT, Walt Disney Studios Home Entertainment;

• Herb Daniel, Senior Vice President, Domestic Operations, Paramount Home Entertainment;

• Vinnie Freda, Executive Vice President, Digital Logistics, Universal Music Group;

• Dan Miron, Executive Vice President, Worldwide Supply Chain Management, Warner Home Video; and

• Robert Ziegler, Senior Vice President, Operations, Sony Pictures Home Entertainment.

The panel will be moderated by former Technicolor and Paramount executive Chris Carey, who serves as ESCA EDGE conference chairman.

ESCA EDGE will be held at the Beverly Hilton Hotel in Los Angeles May 19. The conference is produced by DEG: The Digital Entertainment Group and MESA. Visit entertainmentsupplychain.com to register.

DEG at CES: Blu-ray, Digital Distribution Bolstered Home Entertainment in 2010

Blu-ray software sales rose by 68% in 2010, helping to offset slackening demand for DVDs in the home entertainment market, according to year-end figures released by DEG: The Digital Entertainment Group.

The DEG, which announced the year-end data at the International Consumer Electronics Show (CES) in Las Vegas, said that consumers purchased $1.8 billion worth of Blu-ray discs in 2010. Blu-ray rentals, meanwhile, topped $500 million, with rentals from brick-and-mortar outlets up 34% over 2009.

Blu-ray devices – including set-top players and videogame consoles – have sold through more than 28.5 million units since the format’s launch in 2007. Some six million devices sold in the fourth quarter of 2010 alone, bringing total units sold during the year 11.25 million, according to numbers compiled by the DEG with input from retail tracking sources.

Digital distribution also contributed materially to the home entertainment sector in 2010, edging Blu-ray in overall annual value.

Consumer spending on broadband electronic sell-through (EST) and video on demand (VOD) up a combined 19% to $2.5 billion. VOD brought in $1.8 billion, up 21% for the year, while EST grew 16% to $683 million.

The trade group estimates that VOD transactions offset the decline of the entire rental category. Without VOD, rentals would have been down by 2% for the year; with VOD, the category is up by 2% to $7.8 billion. (The DEG bases its 2010 rental estimates on input from multiple studios and restated 2009 figures from Rentrak.)

Overall, consumer transactions for prerecorded content grew by 1% during the year — “a clear indication that consumer demand for home entertainment remains healthy,” said Warner Home Video president Ron Sanders, who serves as the DEG’s president.

The overall combined value of the rental and sell-through businesses during 2010 was $18.8 billion, a 3% decline from 2009. DVD sales and rentals slipped 11% in value year-over-year, ending 2010 at $14 billion.

Report: Panasonic Has Exclusive on ‘Avatar’ 3D Blu-ray into 2012

Panasonic’s marketing exclusive on the Blu-ray 3D version of James Cameron’s “Avatar” runs through February of 2012, according to a report by UK-based gadget site T3 (via CNET).

The consumer electronics company offers the title exclusively to purchasers of its 3D televisions and accessory packs, in a campaign that began on Dec. 1.

“Avatar” is one of 14 Blu-ray 3D exclusives marketed by studios and electronics makers this year, according to DEG: The Digital Entertainment Group. According to the trade association, nearly twice that number of Blu-ray 3D titles will see general release in 2010, with “dozens” more to come in 2011.

DEG: Data Shows Increased Awareness of Home 3D

DEG: The Digital Entertainment Group releases several stats boosting the emergent Blu-ray 3D format:

• Since March, consumer awareness of 3D-capable TVs has risen to more than 80%, while awareness of Blu-ray 3D players has increased to almost 60%, according to DEG research. Further, of the more than five million HDTVs expected to be sold between now and mid-January, 30% will be 3D-capable.

• The DEG also cited data from UK-based FutureSource Consulting reporting that 3D TV sales in the U.S. are on track to represent 4.5% of all flat panels sold this year. Worldwide, the adoption rate of 3D TV will be faster than HDTVs in many territories, FutureSource says.

The DEG had previously announced that nearly 40 Blu-ray 3D titles will hit retail shelves by the end of the year.

DEG Promotes Schaefer to Director

DEG: The Digital Entertainment Group has promoted Lyndsey Schaefer from Associate Director to Director of its executive staff.

Schaefer, who joined the trade group in 2006, is responsible for the DEG’s day-to-day operations, inclusive of media relations, managing the group’s committees, and event planning for all tradeshows and conferences.

Prior to joining the DEG, Schaefer served as Project Manager for Home Media Magazine, where she managed all promotional campaigns and conferences for the industry trade publication.

At Blu-Con: Studios Ready 3D Holiday Push, Frame Release-Window Debate

By Marcy Magiera

BEVERLY HILLS, Calif. — DEG: The Digital Entertainment Group couldn’t have gotten a bigger headliner for its Blu-Con 2010 conference here or a more ringing endorsement for the Blu-ray format than it got from filmmaker James Cameron.

Cameron appeared at the Nov. 2 event at the Beverly Hilton with producer Jon Landau to walk attendees through Pandora as seen on the “Avatar” Three-Disc Extended Collector’s Editon, due Nov. 16 from Fox. He lavished praise on the format as he showed features created for the new release, including additional footage rendered specifically for the Blu-ray and new documentaries.

“On Blu-ray, you can see the one-to-one relationship of what the actors did to how it was translated in the movie,” Cameron said.

“We know that going forward, more consumers are going to see movies in their homes. Blu-ray is the best way to do that,” said Landau, who with Cameron spoke for a full hour. “Avatar”’s earlier release in its original theatrical version has already shattered all format records by selling more than 8 million Blu-ray units worldwide and 5 million in the U.S.

Perspective on 3D

Though “Avatar” will not see general release this year in Blu-ray 3D (i.e., outside a hardware bundle), as many as two dozen titles will, said Blu-Con participants. In a DEG-coordinated effort, 10 titles from Warner, Sony and Disney will be released at retail on Nov. 16 (the same day as the non-3D “Avatar”).

DEG is creating a Blu-ray 3D demo reel that will be available to stores before Black Friday, and “3D University,” a guide for use by retailers and the press in educating consumers, said Kris Brown, Warner’s VP of worldwide high def market expansion and leader of DEG’s 3D task force.

“Any indications that content was struggling were premature,” Brown said. Nevertheless, “some studios are sitting on some content and could be a little more liberal” with releases, he said.

Read more

Blu-ray Stakeholders Chart Format’s Future at Blu-Con Next Week

Home entertainment industry leaders will trade insights on how to further build the Blu-ray business at the third annual Blu-Con conference Nov. 2 in Beverly Hills.

Program highlights for the conference, produced by DEG: The Digital Entertainment Group, include a keynote presentation by Bill Carr, VP of music and video at Amazon.com; a conversation on the format between “Avatar” filmmakers James Cameron and Jon Landau, and a studio presidents’ discussion moderated by analysts from Nomura Securities and Credit Suisse. To register, visit www.Blu-con.com.

Program Highlights

Amazon.com’s Carr — who leads the retailer’s worldwide digital music and video business, as well as the U.S. DVD/Blu-ray and CD categories — will present his perspective on the expanding the Blu-ray Disc market.

Five studio presidents will discuss the present state of the Blu-ray business as well as its future. Panelists include Steve Beeks of Lionsgate; David Bishop of Sony Pictures Worldwide Home Entertainment; Mike Dunn of Twentieth Century Fox Home Entertainment; Craig Kornblau of Universal Studios Home Entertainment; and Ron Sanders of Warner Home Video.

Moderating the presidents’ panel are leading business analysts Michael Nathanson, Managing Director and Head of US Media and Telecom Equity Research, Nomura Securities; and Spencer Wang, Managing Director and Senior Media and Internet Analyst, Equity Research, Credit Suisse.

Cameron and Landau will share their experiences filming “Avatar” in 3D, and their thoughts on what makes Blu-ray an essential component of the home entertainment mix. Following the filmmakers’ discussion, a panel of studio executives and consumer electronics makers will examine the retail marketing challenges posed by Blu-ray 3D, and discuss the various efforts underway to promote the new concept.

Afternoon sessions include:

• An update from the Blu-ray Disc Association, which manages the format’s technical standards development;

• A special announcement by the DEG regarding its support of film restoration, followed by a panel examining new opportunities for mining studio catalog on Blu-ray;

• A look at the potential for Internet connectivity that Blu-ray affords, including BD Live and Digital Copy; and

• A discussion on the format’s suitability for concert videos and other music titles.

Visit Blu-con.com for registration and more program details.

Blu-ray 3D Pavilion to Showcase the Latest Home 3D Applications at Blu-Con

Leading technology providers from the home entertainment industry will showcase the latest Home 3D applications to complement the upcoming Blu-Con event at The Beverly Hilton Hotel in Los Angeles on November 2.

The conference, which will also be highlighted by an exclusive conversation between “Avatar” filmmakers James Cameron and Jon Landau, is the third annual technology, business and creative event for the worldwide Blu-ray Disc community. For the first time, the Blu-ray Disc Association (BDA) is officially joining Blu-Con with an exclusive display of the latest Blu-ray 3D technologies, featuring demonstrations by Intel, Panasonic, Samsung, Sony Electronics and Technicolor. The Blu-ray 3D Pavilion will provide conference attendees with an up-close experience with these emerging products and services.

“Blu-ray Disc has quickly become the standard for high definition home entertainment, enjoying one of the most rapid consumer adoption rates of any packaged media format,” said Victor Matsuda, chairman, Blu-ray Disc Association Global Promotions Committee. “With Blu-ray Disc now a mainstay in the living room and Blu-ray 3D starting to emerge, Blu-con 2010 is a great venue to highlight the latest developments and show what lies ahead for Blu-ray.”

For more information about Blu-Con 2010, and to register to attend, visit www.Blu-Con.com. For more information about the Blu-ray Disc Association, visit www.blu-raydisc.com. Blu-Con is presented by DEG: The Digital Entertainment Group (www.degonline.org).

DEG To Host Third Annual Blu-Con Event November 2

The Digital Entertainment Group will present its third annual conference focusing on the current and emerging technologies surrounding Blu-ray Disc on Tuesday, November 2 at The Beverly Hilton in Los Angeles.

The Blu-Con 2010 event is specifically designed to bring together a variety of creative, marketing and business experts from across the entertainment and electronics industries. The DEG expects the event to attract more than 400 attendees, with a program that will underscore the vital role that Blu-ray plays in today’s home entertainment environment as a key driver in the industry.

Blu-Con 2010 will kick off with an exclusive conversation between James Cameron and Jon Landau. The “Avatar” filmmakers will discuss their personal journey in creating the spectacular world of Pandora, the challenges of making “Avatar,” the freedom in working in 3D and how watching “Avatar” on Blu-ray is the only proper way to experience it in the home.

“James Cameron and Jon Landau redefined the theatrical movie experience, and are at the forefront of doing the same in the home with high definition Blu-ray,” said Mike Dunn, Worldwide President, Twentieth Century Fox Home Entertainment and Secretary, DEG: The Digital Entertainment Group. “AVATAR recently became the most successful Blu-ray disc since the format’s inception, and with influential voices like Landau and Cameron supporting it, we will see continued growth in record numbers. Their expertise and insight will be a welcome addition to this year’s Blu-Con.”

Special sessions will also be held on Blu-ray 3D, BD-Live and classic films on Blu-ray; along with the networked players and other emerging trends that are anticipated to drive Blu-ray sales in the fourth quarter.

Additionally, this year marks the first time that Blu-Con goes global. The day’s sessions will be streamed to the DEG’s sister organizations, the DEG Europe in London and DEG Japan in Tokyo.

To register for Blu-Con 2010, visit www.Blu-Con.com. For information on sponsorships, please contact Martin Porter at 516-767-6720 or at ideas@martinporter.com.

Universal Ups HD Marketing Exec

Robert Read is named SVP Worldwide HD Marketing for Universal Studios Home Entertainment and Universal Pictures International Entertainment (UPIE). Read, who previously was VP at the studio, oversees Universal’s high-definition initiatives worldwide, serving as global strategist of all new release, catalog and television offerings on Blu-ray™ as well as on other new formats including 3-D and digital home entertainment media.

The Los Angeles-based executive also continues to serve on numerous Digital Entertainment Group (DEG) marketing committees, including his role as Chairman of the Blu-ray Core Marketing Team and his participation on the 3D and DEG Europe committees. (Via PR Newswire)

Digital Distribution Edges Blu-ray In First Half

Digital distribution platforms for home entertainment (including video-on-demand) outpaced Blu-ray Disc in consumer spending during the first half of 2010, passing the $1 billion mark for the first time, according to new figures released by DEG: The Digital Entertainment Group.

Electronic sell-through increased up 37% year-over-year to $285 million between January and June, as video-on-demand (VOD) rose 19% to $865 million, for a combined growth of 23% to $1.1 billion.

Sales and rentals of Blu-ray discs, reached a combined total of $982 million for the six-month period. Blu-ray sell-through increased 84% year-over-year to $733 million during the half.

Blu-ray disc shipments topped 77 million units in the first half of 2010, nearly double the number of the comparable period in 2009, according to figures compiled by Swicker & Associates on behalf of the DEG. Household penetration of all Blu-ray compatible devices, including set-top players, PC drives and PlayStation 3 consoles, has now reached 19.4 million U.S. homes.

Overall consumer spending for the first half of 2010 in the home entertainment window for pre-recorded entertainment — which includes DVD, Blu-ray Disc and digital distribution — reached $8.8 billion, off 3% compared to the same period in 2009. Yet consumer transactions for home entertainment products were up 2% for the first half of the year, DEG says.

Packaged media sell-through, which includes DVD and Blu-ray Disc, declined 7% year-over-year during the half. But the rate of decline slowed to 3% during the second quarter.

Rental spending was down nearly 5% to about $3 billion between January and June, says DEG (citing Rentrak Corp.’s Home Video Essentials). The trade group faults Movie Gallery store closures for the decline, while noting that kiosk revenues increased 55% during the six-month period.

Warner’s Sanders Remains DEG President; Disney’s Chapek Steps Down

The Digital Entertainment Group (DEG) named its new board of directors for the coming fiscal year (Aug. 1 – July 31), while announcing that its chairman, Bob Chapek, was stepping down.

Chapek, who was the group’s president before being elected as its chairman in 2007, advanced at Disney late last year to become the studio’s distribution president. Lori MacPherson, EVP and GM of Walt Disney Studios Home Entertainment, joins the DEG as Disney’s board representative.

TWICE notes that four of the DEG’s five-member executive committee were re-elected, with David Bishop of Sony Pictures Home Entertainment joining the committee as VP. Remaining on the executive committee are: Ron Sanders of Warner Home Video, president; Craig Kornblau of Universal Studios Home Entertainment, VP; Mike Dunn of 20th Century Fox Home Entertainment, secretary; and Eisuke Tsuyuzaki of Panasonic, CFO.

Companies joining the trade group include A&E Television Networks, Amazon.com, IMAX Corp., RealD, Samsung Electronics, SRS Labs, Testronics, and Verance.

Entertainment Supply Chain Conference To Address Cloud Computing, 3D, Green Distribution

The Entertainment Supply Chain Academy (ESCA) reveals a fresh set of topics for its annual conference in Los Angeles June 3.

The event kicks off with an exclusive industry forum presented by the Digital Entertainment Group (DEG) on June 2. Panels during the day-long conference on June 3 range from the trade group’s traditional focus on packaged media supply chain, to current issues such as how 3D home entertainment will affect video production, how Hollywood plans to utilize cloud computing, and how great a carbon footprint digital distribution leaves behind.

Speakers include Doug Reinart, former EVP of Worldwide Operations, Paramount Home Entertainment (who also serves as conference chair); Kelly Summers, VP of Worldwide Digital Distribution for The Walt Disney Company; and Buzz Hays, SVP of the Sony 3D Technology Center. ESCA

Blu-ray Disc Spending Tops $1.5 Billion In ’09: DEG

Blu-ray Disc software sell-through was up 70% in 2009, with  rental revenues up 48%, as total consumer spending on the format topped $1.5 billion, according to the DEG: the Digital Entertainment Group (with input from all major motion picture studios). In the fourth quarter alone, Blu-ray enjoyed title sales in excess of $500 million, representing 13.4% of all sell-through sales versus 8% for each of the prior three quarters. Via DVDTown

Blu-ray Conference To Examine 3D Specs

Integration of 3D into the Blu-ray Disc format is among the technological “coming attractions” that DEG: The Digital Entertainment Group plans to discuss next week at the second annual Blu-Con event in Los Angeles, CA.

A panel of executives from studios and consumer electronics companies will examine the market opportunity for 3D movies on Blu-ray discs at the Nov. 3 conference. Drafters of Blu-ray’s technical specifications eye completion of a 3D standard by the end of this year.

Slated to discuss the 3D Blu-ray standard are Chris Carey, Executive VP Worldwide Technical Operations, Paramount Home Entertainment
; Benn Carr, VP New Technology, Walt Disney Studios
; Don Eklund, Executive VP Advanced Technologies, Sony Pictures Home Entertainment
; Andy Parsons, Senior VP Advanced Product Development, Pioneer Electronics
; and Eisuke Tsuyuzaki, Chief Technology Officer, Panasonic North America.

The conference also will look at the evolution of BD-Live, Blu-ray’s online content platform, as well as the format’s integration with digital content delivery services from the likes of CinemaNow, Blockbuster OnDemand, and Netflix.

Along with the technology sessions, Blu-Con will offer a snapshot of the current Blu-ray market from various perspectives.

Mike Vitelli, Executive VP of Best Buy, will kick off the conference with a keynote on consumers’ home entertainment shopping habits. Following the keynote will be a panel of studio home entertainment chiefs, moderated by Jessica Reif-Cohen, Senior Media & Entertainment Analyst at Merrill Lynch.

Renowned filmmaker Martin Scorsese will join the conference as a special guest, discussing how Blu-ray impacts the movie experience with DVD documentary producer Laurent Bouzereau. Meanwhile, a panel of Blu-ray directors will trade ways of realizing their creative visions with the format.

For complete Blu-Con program information and registration details, visit www.blu-con.com.

Hollywood Studios Named Title Sponsors
 Of Blu-Con 2.0 Conference Program

Major Hollywood studios have announced their support and sponsorship of the Blu- Con 2.0 Conference at the Beverly Hilton Hotel in Los Angeles on Nov. 3. The conference, titled “Blu-ray Means Business,” has secured the following Title Sponsors: Lionsgate, Sony Pictures Home Entertainment, 20th Century Fox Home Entertainment, Universal Studios Home Entertainment, Walt Disney Studios Home Entertainment, and Warner Home Video, who will be supporting the event with exclusive presentations by senior studio executives, technology officers and creative talent.

In addition, hardware manufacturers Panasonic and Sony Electronics have also joined the Title Sponsor list.

“The DEG is planning to present a program that is both timely and informative,” said Amy Jo Smith, Executive Director, DEG: The Digital Entertainment Group. “We are motivated by the broad support that the Blu-ray format is receiving from leading content and technology providers.”

The event will also feature technology showcases by BluFocus, CapGemini, Rovi, Savvis, Sony DADC, Global Polymers and Testronic, as sponsors of the BD Partners Pavilion.

Session Topics To Focus On The Latest
 News And Views On Blu-ray

Some of the biggest names in motion pictures, consumer electronics, IT and video games will be presenting at Blu-Con 2.0, and will provide exclusive insights into how the format is driving the latest trends and emerging opportunities for home entertainment. Session highlights include:

• Analyst Session: Blu-ray and The Digital Divide


• Understanding the Blu-ray Consumer: The Latest Findings


• BD-Live Forum: New Applications and Social Networks


• Digital Copy: Blu-ray as the New Portable


• Blu-ray 3D: Bringing the 3D Experience Home


• Digital Services: Building a Bridge to Blu-ray


• Blu-ray Internationale: The Global Perspective

Industry Leaders To Take The Stage At Blu-Con

In addition to keynotes by Martin Scorsese, Filmmaker; Jessica Reif-Cohen, Senior M&E Analyst, Merrill Lynch; and Mike Vitelli, Executive Vice President, Customer Operations Groups, Best Buy, the following executives have been confirmed as presenters and panelists, with more to follow:

Tom Adams, President, Adams Media Research


Laurent Bouzereau, Film Documentarian


David Bishop, President, Sony Pictures Home Entertainment


Benn Carr, Vice President, New Technology, Walt Disney Studios


Bob Chapek, President, Walt Disney Studios Home Entertainment & Chairman, DEG


Chris Fawcett, Vice President, HAV, Sony Electronics


Tracey Garvin, Senior Vice President, Marketing, Sony Pictures Home Entertainment


Danny Kaye, Executive Vice President, Global Research & Technology Strategy, 20th Century Fox Home Entertainment


John Koller, Director of Marketing, Sony Computer Entertainment America


Vincent Marcais, Senior Vice President, International Marketing, 20th Century Fox Home Entertainment (Europe)


Victor Matsuda, Chairman, Global Promotions Committee, Blu-ray Disc Association


Andy Parsons, Senior Vice President, Advanced Product Development, Pioneer Electronics


Robert Read, Vice President, High Definition Strategic Marketing & USHE Franchise Management, Universal Studios Home Entertainment


John Schad, Vice President, U.S. Marketing/Blu-ray Catalog, 20th Century Fox Home Entertainment

For more information, visit www.Blu-Con.com.

Second Annual Blu-ray Disc Conference Focuses On Latest Opportunities For Home Entertainment Platform

Blu-Con 2.0 Features Leading Executives from Across the Motion Pictures, Consumer Electronics, IT and Video Game Industries

Filmmaker Martin Scorsese Will Keynote Conference

October 8, 2009– Los Angeles—Hollywood-based trade association DEG: The Digital Entertainment Group will present its second annual conference concerning the current and upcoming business activities related to Blu-ray Disc on November 3 in Los Angeles.

The Blu-Con event is specifically designed to bring together a variety of creative, marketing and business experts from across the entertainment and electronics industries, in order to underscore why Blu-ray Disc is the key driver in home entertainment.  The event will attract approximately 300 attendees, and will offer a program that will highlight the critical role that Blu-ray plays in today’s home entertainment environment.

Exclusive keynote presentations will be made by legendary filmmaker Martin Scorsese; media and entertainment analyst Jessica Reif Cohen of Merrill Lynch; and Mike Vitelli, Executive Vice President, Customer Operations Groups, Best Buy.

“All of the nearly 70 member companies in DEG are pleased to be associated with this premier event,” said Ron Sanders, President, Warner Home Video and President, DEG.  “Given the wide variety of presentations and experts involved, we’re confident that Blu-Con 2.0 will underscore the critical role that Blu-ray plays in providing nothing less than the most compelling entertainment experience possible”.

Special sessions will also be held on BD-Live, Digital Copy and other emerging trends; along with the newest Network Players and other product developments that are anticipated to drive Blu-ray sales this Fall.

Blu-Con 2.0 will be held on November 3 at the Beverly Hilton Hotel in Beverly Hills, California.  To register, visit www.Blu-Con.com.  For information on sponsorships, please contact Martin Porter at (516) 767-6720 or at ideas@martinporter.com.

DEG: The Digital Entertainment Group is a Los Angeles-based, industry-funded nonprofit corporation that advocates and promotes the many consumer benefits associated with various home entertainment products, including both physical and digital media on a variety of platforms. The DEG helps provide information and perspective about the home entertainment industry. The DEG also offers a forum for member companies to engage in ongoing discussions concerning various opportunities related to promoting established categories, evaluating and discussing new entertainment platforms and investigating supply chain efficiencies. The DEG can be reached at 310-888-2201, via email at getinfo@digitalentertainmentinfo.com or through its Web site at www.degonline.org.

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