Booming EST breaks $1BN barrier
| 04 June 2014
In a stark indication of the transition from physical to digital media, research from NPD has found that the electronic sell-through (EST) TV and movie market has grown since 2012 to more than $1 billion.
The EST: Analysis and Perspective report showed that fundamentally the EST market is getting a boost as new multichannel video programming distributors (MVPD) and digital retailers join the market and new titles get early release windows. EST sales now represent almost 14% of the 2013 physical and digital home video purchases, with EST film transactions alone growing 68% year-on-year in Q1 2014, accounting for a tenth of all physical and digital movie purchases. Yet despite the improved growth of EST movies, NPD noted that EST TV show unit volume is still a much more significant part of the total EST market.
"Much of the growth in EST is being driven by new digital buyers being drawn into the market," explained Mark Kirstein, president of entertainment for The NPD Group. "Most of the 11 million EST consumers are purchasing digital transactions in addition to physical DVDs and Blu-ray discs; only a small percentage exclusively purchase digital. Comcast joined Verizon as the second major MVPD to offer EST and we expect more to join the EST market moving forward ... EST will become an important complement to video-on-demand (VOD), TV everywhere and traditional pay-TV services, as it drives incremental revenue and contributes to subscriber retention."