Figures published by the British Video Association show that in the first half of 2014 consumer expenditure on video entertainment, excluding physical rental, grew from £903 million to an estimated £909 million. This was driven by a 33% rise in spending on digital video entertainment to £360 million and a 59% rise in spending on New Release DVD sales for Children, predominantly by the success of Walt Disney’s Frozen. This year-on-year increase in the value of 0.7% effectively maintains the overall market value as consumers shift their viewing habits.
Video entertainment is still dominated by buying to own rather than rental, by a proportion of 70:30. Meanwhile, with more than 63 million discs sold this year to date, ownership is dominated by DVD and Blu-ray Disc, despite the increasing popularity of downloading a digital copy. Discs represented 88% of the total ownership market in the first six months.
Consumer research shows that more people buy videos than go to the cinema or listen to Radio 2 and six times as many as pay for a video subscription service such as Amazon’s Prime Instant Video, Sky Now and Netflix.
The rise in revenue from digital video entertainment reflects the growing number of people who are using connected devices and the increasing ease of access to video services in and out of the home, driven by the strong demand for the tablets and faster broadband speeds.
Commenting on today’s figures, Lavinia Carey, Director General of the BVA explains, “These results demonstrate that tens of millions of people love buying and watching videos all year round, in both physical and digital formats. The top three titles alone sold almost 4 million copies between them in the first six months of this year.”
Richard Broughton, Director of Broadband at IHS says: “Subscription is the key driver of growth for digital, but the emergence of new players in the digital retail landscape – namely Sky, BT and Amazon – is injecting new vigour into the market”