You will buy more home entertainment media

June 20th, 2008 at 12:55 am

DVD Blu-ray Wii

A study by Media Control GfK shows consumers will start spending more on home entertainment between now and 2010. But the growth won’t be caused by DVD sales, nor by Blu-ray sales. It will be the games section that gets more crowded. Overall the revenue will grow 17% the next two years.

Although Blu-ray sales will definitely grow, the decline of DVD sales will negatively compensate the extra revenue. Blu-ray revenue will skyrocket from $1.5 billion this year, to $8 billion in 2010. And especially the higher price point of the medium will help to bring in extra cash. Meanwhile, DVD spending will decline from $32.2 billion in 2008 to $26.2 billion in 2010.

But the worldwide growth from $61 billion in 2007 to $78.2 billion in 2010, will be caused by game sales. Gfk president Amy Heller said the sales are “expected to grow to $67 billion in 2008 thanks to growth of new formats like the Wii.” This would mean a game revenue growth of 22% in 2008 and the GfK is expecting another 18% in 2009 and 12% in 2010.

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