US consumer spending on DVD and Blu-ray Discs account for 42% of all video spending in 2010. This compares with 25% spent at the box office, 27% on pay/premium TV and 5% on VOD and Electronic sell-through, according to the Entertainment Merchants Association’s annual report. Of note, 71% of video games purchased were also in the physical formats.

The analysis also indicates that the video game industry leveled off in 2010 with $15.5 billion in consumer spending, however sales of digital game content has grown. Some 40% of console households have purchased downloadable game content and is expected to grow to 58% by 2013.

Additionally, the report states that game consoles are quickly becoming entertainment hubs used not only to play video games, but view DVDs and Blu-ray Discs and stream digital content.

Highlights of the 2011 annual report include:

- Game consoles are quickly becoming entertainment centres. US households owning Sony’s PlayStation 3 said it was used for playing DVDs and Blu-ray Discs 27% of the time and 13% of the time was spent downloading or
 streaming movies. Microsoft’s Xbox was used 40% of the time for non-game play.

- Consumer spending in 2010 for DVD, Blu-ray and digital totaled $18.8 billion – a 3.3% decline over 2009. There were significant areas of growth in spending: Blu-ray disc spending increased 53% over 2009; VOD increased 21%; Electronic sell-through (EST) increased 16%.

- Spending on 3D Blu-ray discs in 2010 was $28.4 million. This is expected to grow to $682.2 million by 2014.

- The rental business models for consumer spending in 2011 are projected to be 22% in traditional stores, 50% through subscription and 28% at kiosks.

- In 2010, Internet VOD consumer spending was $155 million. This is projected to reach $439 million by 2015.

- In 2010 EST consumer spending was $231 million. Spending is projected to grow to $397 million by 2015.

“The home entertainment industry should be encouraged by the strong consumer support for packaged media demonstrating that discs and digital content will coexist in the forseeable future,” claimed EMA President and CEO Bo Andersen. “Moreover, consumer spending reflects a desire for connectivity and the option to simultaneously access content on multiple devices, which includes owning the physical copy of the product.”

The Entertainment Merchants Association is the not-for-profit international trade association dedicated to advancing the interests of the $35 billion home entertainment industry. EMA-member companies operate approximately 35,000 retail outlets in the U.S. and 45,000 around the world that sell and/or rent DVDs, computer and console video games, and digitally distributed versions of these products.

Story filed 15.08.11