EMA: Physical Discs Still Represent 'Majority' of Video and Video Game Revenues

June 4, 2014 - GamePolitics Staff

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.


Comments

Re: EMA: Physical Discs Still Represent 'Majority' of Video ...

Soon there will be a time when this will not work. Things are changing so fast. So I think physical discs will not really work.

Re: EMA: Physical Discs Still Represent 'Majority' of Video ...

Well, considering that the FCC is looking to do things that would really cripple internet speeds, and people are already shorted on the services they pay for.

Re: EMA: Physical Discs Still Represent 'Majority' of Video ...

When you consider that the game Wolfenstein: The New Order, is 40 GB in size, which would take way too long to download, I'd say a case could be made for physical media still being relevant, as in a case like that, it would be more expedient to have physical storage.

Re: EMA: Physical Discs Still Represent 'Majority' of Video ...

I suppose that depends on your internet. I started the Steam download before I went out to dinner and was able to play when I got back. 40gb just isn't really a big deal with decent internet. Every single game on my PC and every game I have bought (handheld games aside) for at least the last five years has been digital. Between gaming, Netflix, Twitch streaming, Hulu, etc my room mates and I typically go through 250-300+ gb of bandwidth a month.

Re: EMA: Physical Discs Still Represent 'Majority' of Video ...

Last night I used bit torrent to download a couple of Humble Bundle Games. One was about 0.5Gigs and took about 15 minutes on my internet connection. So a 40Gig file with good torrent support would take me about 20 hours give or take. That is a lot longer than I really care to wait when I could just go buy the game and be back within an hour.

Re: EMA: Physical Discs Still Represent 'Majority' of Video ...

Then something's either up with your connection or with the torrent seeding itself - similar game size takes me all of 30 seconds on Steam, and maybe two minutes on the Wii U.

--- With the first link, the chain is forged.

Re: EMA: Physical Discs Still Represent 'Majority' of Video ...

No, it is my internet connection. I have a very crappy DSL provider. Costs way too much for the service rendered. And I have no choice in the matter.

Re: EMA: Physical Discs Still Represent 'Majority' of Video ...

The amount of the country that still only has access to crappy internet is definitely a huge problem. I am not sure there is anywhere in the country that really has much of a choice when it comes to high speed internet (there is generally only one "option" per area) but as someone who lives in a city where I can easily download 40gb in two hours or less there is no reason for me not to go digital for everything.

Re: EMA: Physical Discs Still Represent 'Majority' of Video ...

All the more power to you. I would kill to be able to download 40Gigs in 2 hours. That would be awesome. I also love the idea of more digital distribution. However, until everyone has access to speeds like that, I don't think we will see the end to physical media. It will be another 10 years at least.

Re: EMA: Physical Discs Still Represent 'Majority' of Video ...

Id like to know why it is 40gb in size. 

Re: EMA: Physical Discs Still Represent 'Majority' of Video ...

Probably the same reason why Titanfall was obscenely huge, language files. Downloading every language instead of one based on your selection in the download client (such as Steam)

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Re: EMA: Physical Discs Still Represent 'Majority' of Video ...

Really? I'd imagine language is quite small compared to the space requirements for HD graphics. Just look at the sizes of ebooks (around half a Mb each), then multiply that by the number of languages (Let's say 40), and the extra space to allow UTF-8 encoding instead of ASCII (a factor of 2.5 on average, let's say), and you get maybe 50 MB. So, the text alone should really be nothing. In game graphical text (eg. shop signs) will add up to more for more languages, but I really doubt it's going to be the biggest contribution, unless I'm missing something here.

Re: EMA: Physical Discs Still Represent 'Majority' of Video ...

http://www.rockpapershotgun.com/2014/03/12/respawn-actually-explains-why...

It was all language files, because it was downloading EVERY language it was available for. It's not just text, but also the audio language. I'm sure a lot of it was duplicated to for things like explosions.

"35 GB of uncompressed audio"

So out of the 50 gigs it was, only 15 was the actual game. (If that, there might of been more localization stuff being downloaded as well)

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Re: EMA: Physical Discs Still Represent 'Majority' of Video ...

Remember the Wii? They used bloated disk sizes as a piracy prevention method. At the time the wii came out, 2006, downloading 4.4 gig's was to many people, unthinkably slow. Now of course pirates found a way to remove the junk data, and the bandwidth revolution made it all moot anyway.

Flash forward to today. Making a blu-ray with anything more than 1 layers worth of data takes the same amount of time and costs the same. They probably didn't care about preserving space for that reason alone. And hey, if it deterred a couple pirates, win win!

Re: EMA: Physical Discs Still Represent 'Majority' of Video ...

Except the pirates at least wouldn't have had to deal with every single language being installed, probably just one.

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