Digital doesn't break disc- DVD, BD hold up despite onslaught of negative press

[Grubert]

Home Media Magazine

Analysts may think packaged media is going down the tubes because of digital downloading, but sales and rental data show the home video industry is holding up remarkably well despite the down economy, the high price of gas, piracy and any consumer shift toward the Internet.

Consumer spending on DVDs and Blu-ray Discs, purchases and rental combined, was $10.77 billion in Jan-Jun 08, compared to $10.6 billion in Jan-Jun 07 (up 1.6%).

Spending on disc purchases rose 1.1%, from $6.8bn to $6.87bn.

Rental spending rose 2.6%, from $3.8bn to $3.9bn.

Unit sales were up 1.1%, with consumers buying 412.3 million discs, up from 407.9 million discs in the first half of 2007.

Tom Adams, president of Adams Media Research, said, "The fact is, despite what many on Wall Street seem to think, there is very little digital downloading going on. We're talking about $118 million in 2007 spending, and about $254 million this year - so against a $24 billion packaged-media market it'sreally not making much of a dent at this point."

In the first six months of 2008, consumers spent an estimated $194 million on Blu-ray Disc purchases - a gain of nearly 350% from the $43 million that came from high-definition disc sales (BD and HD DVD combined) the first six months of 2007.

Unit sales of Blu-ray Discs in the first half of 2008 were up 340% from the first six months of 2007, according to Nielsen Videoscan data. Studio stimates peg the number of Blu-ray Discs sold in the first six months of the year at 7.37 million units.

Top BD sellers:

1. I Am Legend 305,000
2. National Treasure: Book of Secrets 145,000
3. No Country for Old Men 137,000
4. 300 133,100
5. 3:10 to Yuma 115,000