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

How AI Transforms Financial Decision-Making

Artificial intelligence (AI) has emerged as a transformational force, reshaping business processes and unlocking new possibilities for efficiency and innovation in corporate finance. The latest Gartner survey on AI usage in finance provides evidence of this emerging trend, offering valuable insights into the future growth trajectory of AI in finance. The Gartner survey reveals a significant milestone. As of 2024, 58 percent of finance functions actively use AI technology -- that's a substantial increase from previous years. Artificial Intelligence Market Development Perhaps even more telling is the projection that by 2026 more than 80 percent of finance functions are expected to be leveraging AI solutions. The survey sheds light on the use cases of AI in finance: AI is being deployed to enhance forecasting accuracy and provide deeper insights into financial trends. Automation of routine tasks and improved accuracy in financial reporting are key benefits observed. AI algorithms are