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The industry of home watching: film sector insights and projections

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Topics under DVD, Blu Ray

Global Blu Ray & DVD Market Research

The global digital living room device market (as part of the Movie distribution industry) reached close to $145 billion in 2010, according to BCC Research. The market is forecast to expand at a yearly rate of over 9% to reach almost $226 billion in 2015.

The market is driven by technology innovation and consumer demand for comprehensive digital home theater systems. Home entertainment devices, such as DVD players and blu ray recorders, are fairly standard features in many households. DVD and blu ray discs are consequently recording rising demand. MarketLine predicts the world recorded DVD and video industry will exceed $56 billion in 2013, representing 20% growth in five years. Sell-through represents the largest market segment, at almost 72% of the overall market. The Americas represent more than 56% of the global market in terms of revenue.

Key Market Products

DVD:  Since entering the market in 1998, DVDs have fuelled film industry expansion, generating close to $15 billion in the first six years. In the UK alone over 250 million DVDs were being sold yearly. The global DVD market, however, has been experiencing a decline due to the economic recession and the industry’s shift towards the digital domain. In 2009, DVD sales fell close to 6%, and in the first nine months of 2010, both DVD and blu ray sales and rentals dropped 7%. New releases, which represent around a quarter of the market, plummeted 15% in 2009. DVDs are likely to continue losing revenue to downloading in the coming years.

Blu Ray: The global blu-ray discs market is expected to exceed 6.5 billion units by 2017, according to Global Industry Analysts. Market growth is driven by declining prices of blu ray players, and increasing demand for high-definition televisions. Consumer enthusiasm for all things technological has doubled up with the desire for escapism from the economic recession in the form of home entertainment. The option of home cinema has been encroaching on market share previously held by movie theaters, with consumers quicker to rent a blu ray or DVD than to shell out higher prices for the cinema experience. The increasing number of movies available in blu ray has also fueled market growth. Many titles are released in blu ray format specifically for high definition television, with 3D movies proving particularly popular. Content creators have been meeting the demand for blu ray, with over 1,500 blu ray movie releases available on the market. The EU and the US are regional market leaders in the blu ray discs industry. Over the coming years, market growth is expected to remain at double-digit level.

Industry Leaders

Key players currently operating in the global DVD and blu ray market include Hitachi Maxell, Falcon Technologies, Toshiba, Walt Disney, Sony, Samsung, Sanyo, Apex Digital, JVC, Audiovox, Paramount Pictures, Moser Baer India, CMC Magnetics, Sharp, Taiyo Yuden, Warner Bros. Entertainment, Panasonic, Royal Philips Electronics, Hitachi, Panasonic, LG Electronics, TDK, Twentieth Century Fox, Universal Studios Home Entertainment, Umedisc Limited, RITEK and Lions Gate Entertainment.

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Parent industry: Movie and Video Distribution
Related industries: Movie Theater, VOD

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