Americans’ spending on home videos has finally emerged from the recession — helped by more purchases of higher-priced Blu-ray discs and greater outlays on cut-rate rentals from Netflix and Redbox.
For the three months through September, home movie spending rose nearly 5 percent from a year earlier to $3.9 billion, the first increase since early 2008, according to industry organization, The Digital Entertainment Group.
Buying digital copies of movies and ordering them from set-top box video-on-demand services also rose.
People bought fewer DVDs and made fewer trips to brick-and-mortar video rental stores, cutting into the gains.
For the year overall spending is down about 2 percent at $12.3 billion.
The industry is struggling to cope with a weak economic recovery and the gradual wane of the DVD era. The digital discs, once revolutionary for their clarity and durability, were shown the exit once Blu-ray became the industry’s high-definition standard in 2008. Compared to a year ago, DVD sales dropped by 15 percent, or about $230 million, to $1.32 billion.
Blu-ray disc sales rose by about $156 million, to $423 million. That didn’t make up for the DVD drop, even with the help of the popular re-release of the six “Star Wars” movies on Blu-ray, which racked up $38 million in North America in its first week of sales in late September.
There’s still room for Blu-ray to grow. Although Blu-ray player households rose by 52 percent to 33.5 million, that’s still only about a third of the TV-owning homes in the U.S.
Brick-and-mortar store rentals fell by $142 million to $353 million, but they were more than replaced by a $152 million gain in new delivery methods, such as online streaming, video-on-demand, mail-order subscriptions and cheap rentals from kiosks. Revenue from those rental methods rose to $1.70 billion. Kiosk rentals made up more than half of those gains.
Netflix Inc.’s price hike to customers on Sept. 1 may have bolstered the numbers, and Redbox said it was raising its nightly DVD rental fee to $1.20 from $1, which will likely add to the current quarter’s totals.
The smallest segment remains digital purchases of movies, which rose by about $15 million to $136 million. Movie studios have been concerned that people aren’t purchasing digital movies because they are worried the files won’t be easily transferable to various devices, a concern it hopes to ease with its UltraViolet view-anywhere standard, which Warner Bros. launched this month.
The Hottest Ticket At Sundance: Writer-Director Mary Bronstein’s “If I Had Legs I’d Kick You”
Rose Byrne plays a mother in the midst of a breakdown in the experiential psychological thriller "If I Had Legs I'd Kick You."
Anticipation was high for the A24 film, which will be released sometime this year. Its premiere Friday at the Sundance Film Festival was easily the hottest ticket in town, with even ticketholders unable to get in. Those who did make it into the Library theater were treated to an intense, visceral, inventive story from filmmaker Mary Bronstein that has quickly become one of the festival's must-sees.
Byrne plays Linda, who is barely hanging on while managing her daughter's mysterious illness. She's faced with crisis after crisis, big and small — from the massive, gaping hole in their apartment ceiling that forces them to move to a dingy motel, to an escalating showdown with a parking attendant at a care center. The cracks in her psychological, emotional and physical wellbeing are become too much to bear.
"I'd never seen a movie before where a mother is going through a crisis with a child but our energy is not with the child's struggle, it's with the mother's," Bronstein said at the premiere. "If you're a caretaker, you shouldn't be bothering with yourself at all. It should all be about the person you're taking care of, right? And that is a particular kind of emotional burnout state that I was really interested in exploring."
Byrne and Bronstein went deep in the preparation phase, having long discussions about Linda with the goal of making her as real as possible before the quick, 27-day shoot. Byrne said she was obsessed with figuring out who Linda was before the crisis. The film was in part inspired by Bronstein's experience with her own daughter, but she didn't want to elaborate on the... Read More