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

Navigating AI Implementation Challenges in 2025

As we approach 2025, the global Artificial Intelligence (AI) market is poised for significant growth. Traditional AI spending is rising, while Generative AI (GenAI) struggles to meet lofty expectations. This apparent dichotomy presents challenges and opportunities for vendors and business leaders navigating the complex world of AI implementation. Let's explore the overall situation. Traditional AI: A Pragmatic Approach In the coming year, we expect to see a surge in traditional AI spending as enterprises seek pragmatic, ROI-driven solutions. This trend is driven by a growing recognition of the limitations and risks associated with GenAI projects, which have shown alarmingly high failure rates of 80 to 90 percent in proof-of-concept stages. The trend towards traditional AI is further supported by data from Amazon Web Services (AWS), which revealed that over 85 percent of AI projects in 2024 were not based on GenAI.  This insightful statistic underscores the continued relevance and ...