Bloomberg News

U.S. Home Entertainment Spending Dips 1.5% on Falling DVD Sales

January 08, 2013

U.S. consumers trimmed their spending on home entertainment by 1.5 percent in the fourth quarter, cutting outlays on DVDs for rental and purchase.

Spending totaled $5.66 billion in the final three months of 2012, down from $5.74 billion a year earlier, the Hollywood- backed Digital Entertainment Group said today in a statement. For the year, spending rose 0.2 percent to $18 billion, the Los Angeles-based group said.

Studios have been counting on growth in digital sales, streaming services and Blu-ray discs to counter faltering purchases and rentals of traditional DVDs. For the quarter, consumer outlays on downloads, video on demand and subscription services increased 25 percent to $1.49 billion, the group said. They rose 28 percent for the year.

Subscription DVD services shrank by 31 percent for the quarter and 28 percent for the year, while store rentals fell 5.1 percent and 24 percent in the periods, respectively. Kiosk rentals grew at a slower pace of 7.8 percent in the final three months, compared with 16 percent for the year.

Spending on DVDs continued to tumble. While Blu-ray purchases increased almost 10 percent for the year, total spending on packaged media slumped 5.5 percent, the group said.

To contact the reporter on this story: Rob Golum in Los Angeles at rgolum@bloomberg.net

To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net


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