The Freeland File
Aerospace & Defense
Global Market Data
Tales from the Trail
Lucy P. Marcus
David Cay Johnston
The Great Debate
Jack & Suzy Welch
Macro & Markets
Lipper Awards 2012
Personal Finance Video
My name is ...
What their moms named these famous singers. Slideshow
Romney's adventure abroad begins with stumbles
26 Jul 2012
Queen's "Bond girl" stunt crowns majestic rebrand
Penn State hit with $60 million fine, other penalties for Sandusky scandal
Obama attacks on taxes and Bain hit Romney ratings
Colorado massacre suspect silent in first court hearing
Philippines' gunsmiths emerge from underground
Sat, Jul 28 2012
Camera system brings new focus to ball sports
Refugees flee as Syria clashes worsen
Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography. See more | Photo caption
Highlights from the Opening Ceremony of the London 2012 Olympic Games. Slideshow
The Olympic Village
Where the athletes will live during the London Olympics. Slideshow
Hollywood extends slow turnaround in home video sales
Cautious consumers, foreign trade curb second quarter growth
Fri, Jul 27 2012
HBO nixes idea of Netflix partnership
Tue, Jul 24 2012
Netflix subscriber outlook disappoints, shares plunge
Tue, Jul 24 2012
"Dark Knight Rises" ends Batman franchise for Warner
Fri, Jul 20 2012
Americans squeezed by higher rents, tight credit
Thu, Jul 5 2012
By Ronald Grover
LOS ANGELES |
Sun Jul 29, 2012 1:06pm EDT
LOS ANGELES (Reuters) - Hollywood studios continue to see a slow turnaround in home video sales after a seven-year decline, as consumers increase the numbers of movies and TV shows they stream online and buy more high-definition Blu-ray discs as DVDs fall from favor.
The Digital Entertainment Group, a trade group whose members include studios and electronics companies in the video business, is scheduled to announce on Sunday that U.S. consumers spent $3.96 billion to buy or rent TV movies and TV shows in the second quarter this year, a scant 0.3 percent more than a year earlier.
Still, that was the second consecutive quarter of growth in Hollywood's "ancillary market" for films and TV shows and the third in the past four quarters.
In the first half of the year, consumers spent $8.4 billion to rent, buy or stream movies, a 1.4 increase from last year.
Growth in the ancillary market is crucial to Hollywood studios, whose films often generate more revenues from that market than from the domestic box office.
For the first time, digital delivery of movies surpassed movie rentals in the second quarter, with consumers spending $1.2 billion on movies from Netflix subscriptions, ITunes downloads and other digital distribution methods, an 81 percent increase.
Consumers spent nearly $1.1 billion to rent DVDs in the second quarter from stores, kiosks and other means, a 27 percent decline. TV viewers ordered $478 million through video on demand services from cable and satellite operators.
"We're seeing strong growth in digital distribution, a business that has great margins for us," said Craig Kornblau, president of Universal Studios Home Video and DEG steering committee member.
The group said sales of high-definition Blu-ray discs increased 13.3 percent in the first half, but that was not enough to offset a sharp decline in the sale of traditional DVDs. Overall, sales of packaged DVDs and Blu-ray discs declined by 7 percent.
Industry officials expressed optimism that growth would continue, based on sales of Blu-ray compatible devices, which are now in 42 million homes, and accelerating sales of electronic devices that use the studio-backed UltraViolet service by which consumers can buy movies that they share among several connected devices.
The group said more than 2 million consumers signed up for UltraViolet accounts in each of this year's first two quarters, shortly after the service was made available.
The increase in sales of Blu-ray players and digital consumption came despite a light year for new releases into those markets, said Ron Sanders, president of Warner Brothers Home Video and DEG president. In the coming quarter, "Snow White and the Huntsman," "The Hunger Games," and "The Lorax" will be released on DVD, Blu-ray and for digital distribution.
"We're continuing to build out our ecosystem and we'll have the benefit of a strong box office," said Sanders. "We think that's some pretty good momentum."
(Editing by Peter Cooney)
Related Quotes and News
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Be the first to comment on reuters.com.
Add yours using the box above.
Back to top
New York Legal
Support & Contact
Connect with Reuters
Our Flagship financial information platform incorporating Reuters Insider
An ultra-low latency infrastructure for electronic trading and data distribution
A connected approach to governance, risk and compliance
Our next generation legal research platform
Our global tax workstation
About Thomson Reuters
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.