Consumer spending on Blu-ray Disc software sales was up nearly 10 percent in the first quarter over the same period in 2010. And Blu-ray 3D software is expected to top $100 million for the year, according to the DEG’s First Quarter 2011 Home Entertainment Report.
Blu-ray Disc hardware sales are also increasing, with sales (inclusive of BD set-tops, PS3s and HTiBs) up more than 13 percent over first quarter 2010. This brings total household penetration of all Blu-ray compatible devices to nearly 30 million U.S. homes.
These gains are remarkable given an overall decline of 9.8% in home entertainment spending in Q1 and a whopping 18 percent decline in disc sales, which the DEG blames on a 25 percent decline in box office revenue during the first quarter. Poor-performing movies in theaters result in poor sales of those same movies at home.
With the Easter holiday coming later this year, the DEG reports that the second quarter is off to a much better start with software sales up 20 percent in the first few weeks so far.
The NPD Group’s recent “Entertainment Trends in America” report says that more than three quarters of U.S. consumers continue to view movies on DVD and Blu-ray Disc.
Meanwhile, nearly seven million HDTVs were sold to U.S. consumers in first quarter 2011, up 11 percent over first quarter 2010. HDTV penetration life-to-date is more than 64.5 million U.S. households.
— By Scott Hettrick