Sales of physical discs plummeted in 2017

19 Jan 2018 | Rasmus Larsen |

Despite launching a new physical format in UHD Blu-ray, sales of physical discs continued to plummet in the US last year – even more than in 2016. Subscription streaming on the other hand expanded 30%, according to Variety.

Decline is accelerating

Physical video formats have for decades been a major revenue driver for Hollywood studios but consumers are moving on to more convenient ways of watching movies.

Last year, revenue from disc sales was down 14% to $4.7 billion dollars, following a 10% decline in 2016, according to trade organization Digital Entertainment Group (DEG). Blu-ray has never managed to replace DVD and despite UHD Blu-ray’s early success it brought in a meager $147 million dollars of revenue last year.

Movie theatres also saw fewer moviegoers. The domestic box office in the US dropped 2% to $11.1 billion.


Subscription services save the day

Consumers are instead flocking to streaming services, more specifically subscription based streaming services such as Amazon and Netflix. These types of services typically license catalog titles from studios but have also starting producing their own movies.

Last year, subscription streaming (SVOD) expanded 30% to reach $9.5 billion in revenue in the US alone. In addition, consumers spent $2 billion to purchase digital movies through services such as iTunes and Vudu plus $1.9 billion to rent movies online.

The best-selling titles of 2017 were ‘Moana’, ’Rogue One: A Star Wars Story’, ‘Beauty and the Beast’, and ‘Wonder Woman’.

Hollywood cannot continue to ignore the trend and Variety believes that it will “renew pressure on studios to adjust theatrical distribution windows, particularly since the 2017 box office was down from the year before and saw fewer moviegoers”.

- Source: DEG via Variety

Share on:

Latest news

Raspberry Pi 4 Model B

New Raspberry Pi 4 features 4K60 decoding, dual 4K monitor output

24 Jun 2019 | Rasmus Larsen |
Panasonic 2019 TV

Panasonic 2019 TV line-up

21 Jun 2019 | Flatpanels |
Toshiba HDR TV

Amazon launches 43-55" 4K TVs with Dolby Vision, starting at $330

21 Jun 2019 | Rasmus Larsen |
Netflix Recommended 2019

Only TVs that are 'always fresh' will receive Netflix's Recommended logo

20 Jun 2019 | Rasmus Larsen |
TCL 6 series

TCL surges past Samsung in North American TV shipments

19 Jun 2019 | Rasmus Larsen |
Hisense OLED

Hisense is bringing its OLED TV to the UK & parts of Europe

18 Jun 2019 | Rasmus Larsen |
tvOS 13

Apple TV is getting a picture-in-picture mode with tvOS 13

18 Jun 2019 | Rasmus Larsen |
Samsung TV

Samsung: Important to scan your Samsung TV for malware & viruses

17 Jun 2019 | Rasmus Larsen |