DVD and Blu-ray Disc Sales Nearly Halved in Five Years, Reported MPAA



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Samsung UBS-K8500 Blu-ray Player
Enlarge / The Samsung UBS-K8500, launched in 2015, is positioned as the world's first 4K UltraHD Blu-ray player.

In its annual report on the theatrical home entertainment market environment, the Motion Picture Association of America has reported an extremely sharp drop in physical media sales over the past five years. According to data obtained from DEG and IHS Markit, global sales of video disc formats (DVD, Blu-ray and UltraHD Blu-ray) amounted to $ 25.2 billion in 2014, but to $ 13.1 billion dollars in 2018. a 50% drop in the baseball stadium.

Do not expect either 8K Blu-ray Discs or other emerging, quality-oriented formats. Market data published by Forbes showed that the aging and low-definition DVD format still accounts for 57.9% of physical media sales and that 4K Blu-ray discs account for only 5.3%.

Samsung introduced the very first UltraHD Blu-ray (ie the industry certification for 4K disks) in 2015, but told the press that it was ceasing to manufacture Blu-ray players in the United States this year, not just 4K. Chinese automaker Oppo made a similar announcement last year, although Sony and Panasonic continue to create dedicated Blu-ray players. In addition, the game consoles of Microsoft and Sony continue to play Blu-ray discs.

With such sharp declines, you expect apocalyptic financial results for companies that produce and distribute films. However, while this trend is certainly a loser, the entire sector has grown over the same period. Spending on home entertainment grew by 16% in 2018, driven by higher consumer spending on digital video services from readers such as Netflix, Amazon and Hulu.

The total number of subscriptions to online streaming services increased by 27%, reaching 613.3 million in 2018, exceeding for the first time cable subscriptions (556 million). However, cable still generates more revenue than streaming – it was the most profitable platform in 2018, with $ 118 billion worldwide.

Subscriptions are expected to increase significantly over the next two years, as major players such as Disney, Apple and WarnerMedia introduce new streaming services to compete with existing players such as HBO and Netflix.

The report covers the video content industry at large. It also revealed that movie theater revenues had risen very slightly over the last year and that 75% of American and Canadian consumers had gone to see at least one movie at the cinema in 2018. You can see the complete MPAA report for more details like breakdown by movie, sex, race, ranking, etc.

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