Sales of Blu-ray discs and DVDs remain the largest source of revenue for the movie industry, accounting for 61% of home-video spending on movies in 2012, according to The NPD Group. The previous year the Blu-ray and DVD movie share was 64% and NPD attributes some of the share decline to lower average prices paid for Blu-ray discs, which fell 7% to reach $19.97 per unit.
The digital-video market for movies is indeed growing, accounting for 16% of consumer expenditures, an increase of 2% over 2011. Pay-TV video on demand (VOD) movies from cable, satellite, and telco operators also rose 1% to reach a 12% share of revenues.
DVD and Blu-ray Disc rentals from Redbox and other kiosk companies comprised nearly half of all physical disc movie rentals in 2012, rising 8% over the prior year to encompass nearly half (46%) of the market. Subscription disc rental’s share of disc rentals fell 5% to 32%, as Netflix focused on the streaming side of its business.