According to a recent NPD Group survey, 81% of consumer spending on film entertainment is attributed to renting and purchasing DVD's, with 18% going to theatrical movie ticket purchases and a mere 0.8% coming from digital movie downloads or streaming video.
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These numbers tell us that physical media is still king, with digital downloads, streaming video and VOD accounting for an extremely small slice of Hollywood studio's overall revenue pie.
Studios and manufacturers also reinforced this message at the recent HDTV 2008 event. "Danny Kaye, executive VP of research and technology at 20th Century Fox Home Entertainment, added that in the next several years, 90% of every dollar spent on filmed home entertainment would be on DVD and Blu-ray disc sales and rentals, with the remaining 10% spent for downloads and streams. One key reason is physical media’s overall simplicity versus sometimes complex Internet-based delivery systems, he said."
With such positive responses to physical media coming from both consumers and industry executives, it appears that Blu-ray Disc and DVD have a strong future ahead. Rumors and predictions of physical media's death due to digital downloads have been greatly exaggerated.
