US home entertainment spending rises for first time since 2008
Joseph O'Halloran ©RapidTVNews | 02-11-2011 Clutching at any straws of good news may be dangerous but the Digital Entertainment Group (DEG) believes that home entertainment spending for Q311 represents a continued stabilisation of the industry.
DEG says that overall consumer spending on digital services jumped nearly 5% compared with Q310 to $3.93 billion, the first time spending has increased since the first quarter of 2008 when the economic downturn began.
Particular optimism has come from the fact that among the various services and platforms for delivering filmed entertainment to consumers, Blu-ray, electronic sell through (EST) and streaming all saw growth in third quarter of 2011.
In the third quarter, video on demand (VOD) revenues were up by 4.92% year on year to $419.87 million and subscription streaming amounted to $255.41 million worth of business. By way of stark contrast, brick and mortar rentals were down -28.64% to $ 353 million.
For the nine months of 2011, VOD revenues were up by 4.56 year on year to $1.349 billion and subscription streaming totalling $463.56 million indicating clearly the growing amount of revenues in this sector. Total digital spending for the three quarters was up by 33% to $2.2 billion.