Home entertainment spending fell 5% in 2009 as the economy slacked off and DVD technology continued its decline. The bad news for Hollywood is that digital delivery and Blu-ray discs, while growing, aren’t making up for DVD’s fall.
Revenue from DVD rentals and sellthrough totaled $16.4 billion in the U.S. last year, or 80% of the industry, according to the Digital Entertainment Group. That represented a $2 billion decline from 2008. Meanwhile, Blu-ray and digital — including video-on-demand — grew by a combined $1.1 billion in 2009, to $3.6 billion, and now represent about 20% of the revenue that DVD generates. (Click here to see the full report.)
Will Blu-ray pass digital this year? It’s not as crazy as it sounds — as player prices continue to fall, some 4.5 million Blu-ray devices were sold in Q4, bringing the total to 17.3 million. But more digital movie playback devices are going to hit the market this year, too, including Apple’s iPad, and whatever devices Walmart sells based on the Vudu video service it just acquired.
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