Home Video Revenue Declines

The movie and television businesses are experiencing the same kind of revenue decline in their home entertainment business that the music industry has been experiencing for a decade. Spending on home video entertainment declined by 5% in 2009. A major culprit has been the decline of DVD sales, which peaked in 2006. And - here's where the analogy with the music industry becomes clearer - digital delivery and Blu-ray sales are not compensating for the drop in DVD sales and rentals.

According to the Digital Entertainment Group <http://www.businessinsider.com/chart-of-the-day-blu-ray-and-digital-not-making-up-for-dvds-decline-2010-3?utm_source=Triggermail&utm_medium=email&utm_campaign=SAI_COTD_030410> , revenue from DVD sales and rentals totaled $16.4 billion in 2009, down $2 billion from '08. Digital (including Video on Demand) and Blu-ray increased by $1.1 billion. The newer formats generated $3.6 billion, accounting for 20% of the home video entertainment market.