Home Entertainment Sees Decline in Sales Thanks to Streaming Media

It’s no surprise that the home entertainment sales sees decline in its disc formats now that online streaming media has taken over thanks to services like Netflix and Hulu. The home entertainment market chart based on BTIG reflects the first nine months of 2009 and 2010.

Total sales of home entertainment has decreased by 4%. DVD sales has really taken a hit with sales dropping 16.4% while Blu-ray sales have risen 80%, thanks to its high-def features. But total sales of Blu-ray and DVD has decreased by 7%.

The rental market spending for home entertainment has stayed the same. Netflix DVDs have increased by 27.8% and kiosks including newcomer Rebox has increased with 55%. Others not including Netflix and kiosks, like Blockbuster has decreased significantly by 31.4%.

But the Box Office has seen increased in sales by 8%, thanks to films being in 3D, especially since Avatar was able to roll over to the 2010 year.

There are many other factors for the decline of home entertainment sales, and that can be thanks to video games, YouTube, and torrents.

Source: BTIG Research, LA Times

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