Growth in Blu-ray Disc sales to Belgian consumers continued to rise from 1.2 million units in 2011 to 1.5 million in 2012, according to IHS Screen Digest analysis of data published by the Belgian Entertainment Association (BEA). Consumer spending on BD also increased during the same time period, from €21.8m to €24.4m - a 11.8% increase. As seen elsewhere in Europe average price for a BD continued to decline in 2012 falling 7.9% to €16.59.

Blu-ray Disc units shipped to trade declined for the first time in 2012, from 1.49 million in 2011 to 1.43 million by year end 2012, a decline of 4.2%. Here too trade revenues from BD declined, dropping 30.8% to €11.2m; driven by a 27.8% fall in average trade price from €10.87 in 2011 to €7.85 in 2012.

"The decline in BD units shipped to trade is not, at this stage, a significant concern as sales of BDs to consumers continue to increase," says IHS Screen Digest analyst Tania Loeffler. "It suggests that the BD supply chain has - six years after the format launched - completed filling warehouse and retailer shelves with stock, with the expectation of relatively stable trading conditions going forward."

DVDs sold to Belgian consumers fell from 13.8 million to 12.3 million in 2012 - a 10.8% decline. The average retail DVD price remained stable at €12.01 (a small -0.3% fall between 2011 and 2012). Consumer spending on DVD declined from €166.1m in 2011 to €148.2m in 2012,

The number of DVDs shipped to trade increased by 3.9% to 14 million in 2012. However, a steep decrease in average trade price - from €6.51 in 2011 to €4.96 that year - resulted in trade revenue from DVD declining during the same time period, by 20.9% to €69.4m.

"At trade level, the increase on DVD units shipped to trade in 2012 is a result of the market stabilizing after a difficult 2011, which experienced decline of 34.8% in DVD trade volumes," notes Loeffler. "The closure of Entertainment Retailers Group in late 2010 will have caused volumes of low priced catalogue stock, already accounted for in previous year's shipment numbers, to have flooded onto the market, artificially depressing trade volumes for 2011."

"Although there have been a number of retail video wholesalers and retail store closures in Belgium since 2009, the slower adoption of BD is also a contributing factor in the overall contraction of the physical video market in the country," says Loeffler. "Blu-ray Discs sold to consumers only accounted for an 11% proportion of total sales in 2012 - in contrast to other markets such as Germany where BD accounted for 21%."

Last year's net penetration of BD-capable reached 25.2% of Belgium households. However, about half of this penetration is accounted for by installed base of 688,000 PS3 game consoles. "This is significant," notes Loeffler, "as owners of PS3 consoles have traditionally far lower tie-rates in terms of purchasing BD software than households with dedicated standalone BD players. Industry feedback suggests that there has also been a lack of retailer support in the promotion of standalone BD hardware across the Benelux region in recent years, compounding the issue of hardware adoption."

Story filed 28.05.13