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A four-fold sales increase of Blu-ray movies coupled with double digit disc sales increases in China, Russia and India helped mitigate the ongoing global DVD sales slump in 2008, according to a new report.
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Consumers globally spent $26.4 billion on video software, with two thirds of that tally ($18.1 billion) spent on DVDs. That represents a decline of more than $2.6 billion or a 3.6% drop in total disc spending (together with rental) from 2007. That includes a 4.7% drop in disc sales alone, according to the London-based research firm.
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Consumers globally spent $26.4 billion on video software, with two thirds of that tally ($18.1 billion) spent on DVDs. That represents a decline of more than $2.6 billion or a 3.6% drop in total disc spending (together with rental) from 2007. That includes a 4.7% drop in disc sales alone, according to the London-based research firm.
By my estimations, Blu-ray sales will have to more than double in order to offset the loss in DVD sales. But the problem is that for every Blu-ray movie sold, that's at least one less DVD sale, and if you take into account the fact that Blu-ray movies are more expensive and people have limited budgets, it could be 2 or 3 less DVD sales. The number of discs sold going down won't really matter if revenue stays the same, but I suspect studios make more money off 2 or 3 cheap DVDs than off a single more expensive Blu-ray.