Though it can be argued that CDs and DVDs are still continuing on a downward plunge, Blu-ray is holding its own and has even increased in sales despite belief that digital content is now taking over the world. According to the Entertainment Merchants Association’s (EMA) recent report on Blu-ray disc sales, the optical media format has actually enjoyed an increase of 10% in sales throughout last year, 2012.
The 10% increase in Blu-ray disc sales last year is generally being credited as the factor that contributed the most to the overall 0.25% increase on home entertainment spending by consumers. The overall increase of spending on home entertainment prompted proclamations, one after another, about the health of the home entertainment industry. As an industry, home entertainment had been suffering in terms of sales and spending. Last year’s 0.25% increase is the first positive growth of spending in the industry in the past seven years, according to an official EMA announcement at the Independent Product Market event that it holds every year.
With EMA still positive about the health of the home entertainment industry, Senior Principal Analyst of U.S. Media for IHS Screen Digest Tom Adams has projected that the spending for this year will likely remain within the same ball park as last year’s figures. In 2012, home video consumers spent nearly $18.5 billion. Though news about the increase in Blu-ray sales and home entertainment spending is encouraging, the industry isn’t letting too much optimism get too its head. Slight decreases in spending are still expected up until 2017 with $17.9 billion as the projected amount of spending for the year 2017 itself.
The increase of Blu-ray sales can be attributed to a few factors that have been benefitting the consumer. For one, the average price of Blu-rays has gone down to $19.97. Another factor is that Blu-ray has been seeing a more widespread adoption in the industry. These few factors have been enough to produce some remarkable figures. Just last year, unit sales of Blu-ray discs were up 22.6%, and, though less people purchased disc media, they bought more of it. Consumers in the top 10% of Blu-ray disc spending shelled out an average of $572 for the goods. At the end of the day, the increase in Blu-ray disc sales also serves as a testament to the wonders that retailers have done. Whether selling digital or physical content, retailers have been able to come up with ways to get consumers interested in order to get sales going.