EMA: Blu-Ray Disc Sales Increase in 2012

Retailers are embracing digital delivery as consumers migrate their existing disc collections into the digital world, but a new report by the Entertainment Merchants Association (EMA) shows that Blu-Ray consumption is on the rise. There was a .25% increase in consumer spending on home entertainment in 2012, the first time in seven years there hasn’t been a decrease, EMA noted at the annual Independent Product Market event.

"This report confirms that our industry is indeed healthy," said EMA president and CEO Mark Fisher. "There’s a lot of life left in this business."

Consumers spent around $18.5 billion on home video in 2012, and that trend is expected to be even with those numbers in 2013, according to Tom Adams, senior principal analyst of U.S. media for IHS Screen Digest. Small decreases in spending are expected annually through 2017, but not by much (projected $17.9 billion in spending in 2017).

EMA’s report put Blu-ray sales up nearly 10 percent in 2012, with the average price paid by consumers declining to $19.97. Spending on digital video game content increased 16 percent.

Graham Gee, VP and GM of Nielsen, shared data showing DVD unit sales down 7.2 percent in 2012, but overall Blu-ray unit sales up 22.6 percent. Gee notes that more than 70 percent of all disc sales came from mass merchants, and that both Wal-Mart and Target saw declining sales. While there were fewer people buying discs in 2012, those who did buy bought more. The top 10 percent of disc buyers each averaged $572 on content.

And even as the retail space gets a little softer and digital sales are growing stronger, traditional retailers are turning to service that will help them make money in that space such as Walmart’s Vudu and Best Buy’s CinemaNow.

Source: Home Media Magazine



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