DVD Sales Plunge 16% in Fourth Quarter

Digital Spending Rises for Rentals, Purchases and Streaming

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A shopper browses DVDs at a Best Buy.
A shopper browses DVDs at a Best Buy. Credit: Mike Mergen/Bloomberg News
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U.S. spending on movies and TV shows for home viewing fell 1.8% to $17.8 billion last year, as soaring outlays on digital products failed to counter the continued decline of DVDs.

The drop accelerated in the fourth quarter, when sales of DVDs fell 16% to $2.34 billion and rentals shrank 8.5% to $833 million, according to the Digital Entertainment Group, a Los Angeles-based consortium founded by the studios. Digital spending, including rentals, purchases and streaming services, grew 16 percent to $2.12 billion.

Home entertainment is a major source of revenue for Hollywood, with sales 70% larger than the box office in the U.S. The business has been buffeted by change as online viewing and purchases have grown and spending on DVDs withered. Total home entertainment spending shrank 4.1% in the fourth quarter to $5.3 billion, a reflection of those trends.

"Consumers embraced the convenience and accessibility of purchasing and collecting digital content, while studios reaped higher margins from these digital sales," according to the statement.

~ Bloomberg News ~