Digital revenue more than makes up for declining DVD and Blu-ray sales

Shawn Knight

TechSpot Staff
Staff member

The Motion Picture Association of America (MPAA) in its annual Theatrical Home Entertainment Market Environment (THEME) report revealed that physical media sales have decreased significantly worldwide over the past five years.

In 2014, global spending on physical media like DVDs and Blu-rays reached $25.2 billion ($14.9 billion internationally and $10.3 billion in the US). In 2018, those figures were down to $13.1 billion ($7.3 billion overseas and $5.8 billion domestically) according to data from IHS Markit and Digital Entertainment Group.

Whereas physical media sales have fallen off, digital spending has more than made up for the gap. In 2014, digital sales amounted to $15.7 billion globally. By 2018, that figure had ballooned to $42.6 billion.

Don’t expect quality-focused formats to help level the playing field, either. The aging DVD format still accounts for 57.9 percent of disc media sales while higher-quality Blu-rays only grabbed 5.3 percent of sales. It’s so bad that Samsung back in February announced plans to pull out of the Blu-ray hardware market. Oppo did the same thing in April 2018.

Overall, home entertainment consumer spending increased 16 percent from 2017 to 2018, topping out at a record $55.7 billion.

Lead image courtesy Iakov Filimonov via Shutterstock

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lumbeeman

TS Enthusiast
Just goes to show that there are lots of people out there that don't care about quality picture and sound. If there is something like "Star Wars" with great sound and special effects, I make it point to get it on physical media so I can enjoy it better than in any digital form.
 
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wiyosaya

TS Evangelist
Just goes to show that there are lots of people out there that don't care about quality picture and sound. If there is something like "Star Wars" with great sound and special effects, I make it point to get it on physical media so I can enjoy it better than in any digital form.
I do care about picture quality and sound; I don't want to pay $30 for a movie I might not like. I get things I want to see in the best possible quality from my local library.

I would not be surprised if others also do not want to spend $30 for a movie and that that is one of the main drivers of the drop in sales.
 
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m-tec

TS Booster
It's no different to photography. Most people cant tell a good image from a bad image. Good enough is ok for the majority of people, and the convenience of streaming is more practical.

I still buy a lot of used disks in the Uk from CEX, 50p to £2 for a DVD is a bargain. It may not be HD but I get no pixelation from compression in the dark areas, and the sound through my stereo is great. £3 for a blu-ray as well.
I've doubled my disk collection with cheap used disks, and they are mine.
 

mcborge

TS Guru
It's no different to photography. Most people cant tell a good image from a bad image. Good enough is ok for the majority of people, and the convenience of streaming is more practical.

I still buy a lot of used disks in the Uk from CEX, 50p to £2 for a DVD is a bargain. It may not be HD but I get no pixelation from compression in the dark areas, and the sound through my stereo is great. £3 for a blu-ray as well.
I've doubled my disk collection with cheap used disks, and they are mine.
I'm in the uk too and I do the same. We have two CEX stores where I am. Note I put store instead of shop as saying I get my dvd's from a CEX shop has a totally different connotation, lol.
 
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