With The Hunger Games breaking box office records on its opening weekend, it's just a matter of time before the film hits Blu-ray, DVD and digital delivery services like Netflix, Amazon Prime and Blockbuster. It's big movie releases like this that are changing the home entertainment landscape, in tandem with new smartphones, tablets and game consoles and portables.
Americans will pay to consume more movies online in 2012 than they will on physical video formats, marking the first year that legal, Internet-delivered movies will outstrip those of DVDs and Blu-ray discs combined. The legal, paid consumption of movies online in the United States will reach 3.4 billion views or transactions in 2012, approximately 1.0 billion units higher than the 2.4 billion for physical video for this year, according to the IHS Screen Digest Broadband Media Market Insight report from information and analytics provider IHS.
As recently as last year, physical video had claimed a commanding share of the market with 2.6 billion views or transactions, compared to 1.4 billion for online, as shown in the figure attached. This year's online video consumption via the open Internet represents annual growth of 135 percent from 2011. Online video transactions and videos are also set to continue increasing in the years to come, while physical video sales are expected to decline or stagnate in comparison.
"The year 2012 will be the final nail to the coffin on the old idea that consumers won't accept premium content distribution over the Internet," said Dan Cryan, senior principal analyst, broadband & digital media at IHS. "In fact, the growth in online consumption is part of a broader trend that has seen the total number of movies consumed from services that are traditionally considered 'home entertainment' grow by 40 percent between 2007 and 2011, even as the number of movies viewed on physical formats has declined."
The physical segment consists of retail sales and rentals of VHS, DVD and Blu-ray discs (BD). The online portion is comprised of electronic sell-through (EST), Internet video on demand (iVOD) and subscription video on demand (SVOD).
Key to the surge in consumption of online video has been the rise of all-you-can-eat subscription services such as Netflix and Amazon Prime, which offer customers unlimited on-demand movies for a flat monthly or annual fee. The result is that subscriptions in 2011 accounted for 94 percent of all paid online movie consumption in the United States, compared to just 1.3 percent of units consumed that were bought on an ownership basis via electronic sell-through.
Bookmark/Search this post with
About the Author
John Gaudiosi
Editor-in-Chief
John Gaudiosi has been covering videogames for the past 17 years for outlets like The Washington Post, CNET, Wired Magazine and CBS.com. He has focused on the convergence of entertainment and videogames for outlets like Video Business, Home Media Magazine, Entertainment Weekly, The Hollywood Reporter and Variety. He currently serves as Editor-in-Chief of Gamerlive.TV and is also a freelance game columnist for Reuters and writes for outlets like Playboy Magazine, NVISION Magazine, GamePro Magazine, Official PlayStation Magazine, EGM Now, Maxim.com, AOL GameDaily.com, GeForce.com, and Yahoo! Games. John also serves as the video game expert for NBC in Washington D.C. John was named one of the Top 50 Game Journalists in the world by Next-Gen.biz in 2007. He is the co-author of Scholastic Books' How to Get into Videogames, Prima Publishing's Madden: Twenty Years of Videogame Football and Electronic Arts: The Official History.
This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers. Five Filters recommends: Donate to Wikileaks.
0 comments:
Post a Comment