A new report from the Entertainment Merchants Association (EMA), "2014 D2 Report: Discs & Digital – The Business of Home Entertainment Retailing," suggests that physical discs for games, movies, and other entertainment continue to represent the majority of revenues for video and video games.
The report also acknowledges that "digital content has established itself as a significant and growing sector of the market." The report says that 35 percent of video spending in 2013 was for digitally delivered content and, while total physical video game spending (including used games and rental) slightly exceeded that of digital game spending, digital video game spending surpassed spending on new discs for the first time.
"Physical retailing remains the mainstay of the video and video game industries, but clearly the digital market is firmly entrenched as a significant and growing sector," said EMA President & CEO Mark Fisher. "As a result, the consumer today has more options for enjoying video and video games however, wherever, and whenever they want."
The report also found that overall video spending increased to $18.2 billion, with Blu-ray Discs and digital delivery compensating for a decline in DVD revenues. Around 50 percent of households subscribe to a video subscription service; and a majority in all tracked age groups now play video games, according to the report.
Organizations and companies contributing data to the report included Digital Entertainment Group, Frank N. Magid Associates, iHS Electronics and Media, The Nielsen Company, The NPD Group, Parks Associates, and Rentrak Corporation.
For more information, check out www.entertainmentmerchantsassociation.org.