Internet to Surpass DVDs in Movie Consumption
Screen Digest says that the number of movies either purchased or rented online, via outlets like iTunes and Netflix, will grow 135% this year, to 3.4 billion, but people will only spend $1.72 billion on digital movies, and will spend around $11.1 billion on DVDs and Blu-rays. Though you’re most likely living in a world where you don’t know anyone who actually buys DVDs anymore and doesn’t have Netflix, the disparity in revenue makes sense, as it only costs around $15 a month to stream an unlimited number of movies via Netflix alone, but it costs around $15 for one DVD. So, while someone streaming one movie per month on Netflix will make that single movie cost around the same $15 price as one DVD, each subsequent movie streamed per month divides that price tag per movie accordingly: 15 movies streamed in one month would give them each a $1 price, whereas 15 $15 DVDs purchased would come out to $225. Math makes sense, sometimes.
Screen Digest notes that in 2012, online storefronts and services will account for 57% of movie consumption, but only make up 12% of spending. They also noted that streaming accounted for 94% of online movie consumption in 2011, whereas full digital purchases only made up 1.3%.
Obviously, we’re moving to a streaming society, but it seems the DVD market is still making enough money to warrant its own existence, for now.
(via LA Times)
- Netflix announces third original series, Hemlock Grove
- NBC and YouTUbe to live stream the entire 2012 Olympics
- 2.1 million people legally streamed the Super Bowl last year
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