Skip to main content

TV Program Shift from DVD to Download

A flood of TV programs in the DVD format is blamed for crowding out theatrical titles in video retailing. But that torrent of programs hogging shelf space isn't a rising tide anymore, forecasts Kagan Research.

This year is expected to be a peak for total revenue from DVD sales of TV programs, with $2.71 billion in worldwide revenue at the consumer-spend level forecast by Kagan Research. Consumers are switching from fixed media such as DVDs to on-demand electronic downloads," notes Bridget McCullough, associate analyst with Kagan Research. "They are becoming more and more comfortable with the concept of storing their video entertainment on a hard drive as opposed to on a shelf."

The plateau in 2006 will end a sharp run-up. In 2000, TV program sales on DVDs generated just $570 million. After 2006, Kagan Research forecasts the category to slide slightly through 2012.

Kagan Research sees TV programs representing a shrinking slice of global video/DVD total revenue. TV programs are forecast to account for 6.7 percent of global consumer spending on video/DVD this year, but the category could decline to 4.9 percent of total video by 2012.

Looking at shifting economics, downloads figure to be less lucrative on a per-transaction basis for program distributors and studios. Distributors take an estimated 80 percent of consumer spend on DVD sales in the sell-through category (TV programs are not strong rental titles), while they only get an estimated 60-70 percent of consumer spend from downloads.

But downloads are generating growing volume. Kagan forecasts pay-per-view and video-on-demand TV revenue on a global basis for Hollywood distributors (including feature films) will soar 276 percent from 2004-2012, and rise from 1.5 percent of total distributor-level revenue to 3.8 percent in that eight-year period.

Popular posts from this blog

Open Banking Usage to Grow by 470 Percent

The Open Banking business model has been advantageous for Third-Party Providers (TPPs), helping them to extend their offerings into other areas of financial services with new capabilities. Open Banking is also advantageous for traditional banking institutions, despite the perceived loss of custodianship over their data, by providing greater accessibility to more bank services. Furthermore, Open Banking can help serve Mobile Internet providers that are able to leverage it to create tailored services according to customers’ preferences and/or economic limitations. Open Banking Market Development Since traditional banking services are made more convenient by TPPs via greater data access, customers can proactively manage their finances and shape the development of new financial offerings. This is particularly noticeable in the realm of Digital Payments, where retail merchants and customers transact through eCommerce, which has the greatest number of use cases for Open Banking. These includ

Global Digital Business and IT Consulting Outlook

Across the globe, CEOs and their leadership teams continue to seek information and guidance about planned Digital Transformation initiatives and the most effective enterprise organization change management practices. Worldwide IT and Business Services revenue will grow from $1.13 trillion in 2022 to $1.2 trillion in 2023 -- that's a 5.7 percent year-over-year growth, according to the latest market study by International Data Corporation (IDC). The mid-term to long-term outlook for the market has also increased -- the five-year CAGR is forecast at 5.2 percent, compared to the previous 4.9 percent. Digital Sevices & Consulting Market Development IDC has raised the growth projection despite a weak economic outlook, because of vendor performances across 2022, growth indicators from adjacent markets, increased government funding, and inflation impacts. The actual 2022 market growth was 6.7 percent (in constant currency), which was 87 basis points higher than forecast last year, alth

Why Instant Issuance Payment Cards Evolved

The global financial services sector continues to grow as more progressive organizations seek to gain a meaningful competitive advantage from their digital transformation initiatives. Across the globe, many regions are seeing a significant rise in 'instant issuance' activity from a physical and digital perspective, from both traditional and emerging innovative banking institutions. Digital Payments Market Development Customers increasingly demand instant access to banking services, with physical instant issuance enabling them to leave their branch equipped with a ready-to-go payment card. According to the latest worldwide market study by ABI Research, the market for instantly issued physical payment cards will increase from 243.2 million shipments in 2022 to a forecast of 471.1 million in 2027. "Critically, instant issuance of payment cards is no longer limited to the physical," said Sam Gazeley, industry analyst at ABI Research . Indeed, the growing digitization of p