Digital entertainment spending grows in Q1--finally
Michelle Clancy ©RapidTVNews | 01-05-2012
Home video spending rose 2.5% to $4.45 billion in the first quarter, the first year-over-year gain in two quarters, according to new research from Digital Entertainment Group.
How the growth shook out though was a mixed bag. Unsurprisingly, spending on digital downloads, online streaming services and video-on-demand (VOD) skyrocketed 74% to $1.22 billion. But when it came to physical disc purchases, Blu-ray sales rose 23% to about $541 million, while DVDs sales fell 7% to $1.51 billion.
Physical rentals meanwhile showed a marked waning, falling 25% to $1.18 billion. A lone bright spot is Redbox, which saw its kiosk rentals increase 30% for revenue of $523 million. Redbox now makes up almost half of all physical rentals.
Overall, purchases of home video content across all categories rose 4% to $2.22 billion, while rentals came in at less than 1% to $2.23 billion.