Video Sales to Stabilise In 2010

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Blu-ray Disc (BD) sales will not be able to compensate for the global downward trend in DVD sales in 2009, according to Screen Digest’s Video Intelligence team. Their annual review of the global market for physical video indicates, however, that global consumer spending on packaged video software will stabilse again next year.

Consumer spending on buying and renting physical video format fell by 2.8% in 2008. The recession slowed take-up of the HD format in most markets, which means that 2009 is not likely to reverse the previous year’s trend. Screen Digest expects BD to account for 8.5 per cent of total video spending globally this year.

Surprisingly, Screen Digest’s review shows that worldwide rental revenues have increased their share of worldwide spending on video software by half a percentage point in 2008 to 32 per cent. In the US this upturn is attributed to strong growth in both online and subscription rentals. Meanwhile, Japan accounts for 26% of worldwide rental spending. Screen Digest expects the global rental sector to increase its share by another 2% in 2009.

A total of 2.7bn video software units were shipped to the global retail and rental sectors in 2008, down 1.4 per cent from the previous year. Last year the DVD format represented 92% of units shipped and the HD BD format just 2%. Screen Digest expects the international business to increase its share of video shipments to 55 per cent in 2009.

DVD prices have been in decline since the format’s introduction more than a decade ago; BD disc prices have dropped almost 10 per cent since its introduction.

In terms of hardware, almost 499 million households worldwide were equipped with at least one standalone DVD Video player or recorder by the end of 2008 – up 10% from the previous year. Screen Digest expects the number of DVD households to increase 8.5 per cent to just over 540m in 2009.

The number of dedicated BD players to reach 18.4m worldwide by the end of 2009.

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