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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‘Semi-Pro’ wins DVD battle

June 12th, 2008 at 2:57 am

Semi-pro DVD

Lightweight Will Ferrell vehicle ‘Semi-Pro’ was the number one rental this week. And while it made just $33.5 mill at the domestic box office, Ferrell also topped the DVD sales chart.

The low-rated comedy ‘Meet the Spartans’ came in second in rentals. The spoof movie was mildly more successful at the domestic box office, but did $35 more than ‘Semi-Pro’ overseas. Sadly, no rental box office numbers were provided this week.

The top seller of the last two weeks, ‘National Treasure: Book of Secrets,’ came in second in sales.

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No change in DVD prices since 2004

June 4th, 2008 at 11:33 am

DVD prices Harry Potter Spider-Man

Did you think your new DVDs were getting cheaper? Not really. NPD’s research shows the prices for new DVDs have been stable since 2004. The average price dropped just 6 cent, from $17.27 in 2004 to $17.21 in 2007.

Retailers don’t want to take a loss to get buyers into their store, like they used to. “There was a time when you’d see $13.99 across the board [for a new release], but now it’s more like $17.99. I think they are finding they just aren’t the draw anymore, when people would come in for DVDs and you could drive them to other areas of your business. But if you maintain the higher price, and sell less, then you’ll do OK,” one retailer said.

Consumers don’t mind the pricing either. In a survey by the NPD, 62% said DVD prices were good to excellent. Just 2% said the value was poor. $15.50 was considered the optimal price for a new DVD, while $19.61 was the highest consumers would still pay.

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