Last year’s strikes pushed most of Disney’s intended slate and others to 2025, while hands-down home hits such as another “Spider-Verse” sequel and a new Jordan Peele film remain undated. This has bleak implications for the home market in 2024. But per DEG’s findings, the health of home entertainment is inextricably linked to the same films that lead the box-office charts. It’s easy to picture home video enthusiasts meticulously sorting through shelves of Criterion and Kino Lorber releases. Truth be told, it could have very well crossed that benchmark this year had it not been for the successful Blu-ray release of “ Oppenheimer” in the fourth quarter. VIP+ projects 2024 will be the first year the DVD will be a sub-billion-dollar business. If you subtract that number from Physical Product (roughly $1.6 billion), that leaves 2023 physical DVD sales at around $1.36 billion - a 16% decline from 2022. DVD rentals in 2022 were $502.35 million, so assuming the “more than 50%” decline in rentals from 2022 means roughly 55% of that number, that puts physical rentals revenue for 2023 around $225 million. What’s worse, there are signs of more such retail departures.ĭEG did not publish the exact split of Physical Product between sales and rentals, but rough estimates can be calculated based on the existing information. Physical Rentals’ impending departure raises questions about what’s going to happen to the lion’s share of the Physical Product figure in 2024 - the sales figure that didn’t erode too badly coming out of 2022 but is likely to shrivel this year as Best Buy stops stocking DVDs in stores. This call was made just a few years after DEG demoted rentals from a dedicated category, with separate metrics for brick-and-mortar stores, kiosks and subscriptions, to just a single sum. Starting in the 2024 report, Physical Product will account for only DVD sales, with DVD rentals being completely phased out. Rentals lost more than 50% of the previous year’s total revenues in 2023 because of, according to DEG, Netflix’s decision to end its DVD rental service at the end of October. In the latest Digital Media Entertainment Report, DEG has introduced the new metric Physical Product, a combination of two revenue streams it previously reported separately - DVD sales and rentals. But when you decipher this one, be prepared to understand that no creative calculation in the world will be able to save the DVD from finally hitting rock bottom this year. That’s a borderline comical 3,631% increase in just 13 years.įast-forward to 2024, when DEG made another adjustment to how it’s doing home video math. And 2024 is no exception: Preliminary data placed total spend in 2023 at $43 billion, up 16.8% over the prior year.īut for DEG, which was founded in 1997 as a trade group focused on the home video category, maintaining this positive story requires making the occasional tweak to how it reports this metric.įor instance, if DEG hadn’t made a significant change in 2011 and continued to track only the core home video business itself - which includes DVD sales and rentals, VOD services such as Xfinity and Electronic Sell-Thru platforms as in iTunes - that number would have plummeted from $17 billion to $6 billion (an 65% decrease) in the latest report issued earlier this month.īut because DEG added subscription streaming to home entertainment spending from the likes of Netflix and other SVOD services in 2011, that revenue line alone rocketed from $994 million to $37 billion in 2023. In the first quarter of every year, the Digital Entertainment Group can be counted on to offer an optimistic take on a metric of its own design, dubbed Total Home Entertainment Spending in the U.S.
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