DEG: Blu-ray Disc Sales Increases by 74%, Players 125%

According to US sales figures for the home entertainment industry released today by DEG: The Digital Entertainment Group, Blu-ray Disc software sales continued to rise in the first quarter of 2010, up 74% compared to the same period last year. BD Rental was up 36%. Hardware sales experienced remarkable growth, with set-top players up an "astounding" 125% versus first quarter 2009. Household penetration of all Blu-ray Disc compatible devices, including set-top players, PC drives and PS3 consoles has now reached 18 million US homes.

Some 34 million Blu-ray Discs shipped to retail in North America, up 72% over the same period last year.

Consumer spending for the first quarter in the home entertainment window for pre-recorded entertainment, which includes DVD, Blu-ray Disc and digital distribution, was $4.8 billion, down 8% compared to the same period last year. Total rental was down 14% in the first quarter, largely as a result of brick and mortar store closures, according to Rentrak Corporation's Home Video Essentials.

While the industry faced tough comparisons to the first quarter of 2009, the home entertainment category performed extremely well in March 2010 compared to March 2009, with consumer spending on home entertainment up 2% for the month, consumer spending on sell-through up 4%, consumer spending on digital up 35%, and Blu-ray Disc software sales up a staggering 124%. The DEG also noted that the Easter holiday often sees a spike in gift buying, which helped to fuel March sales.

"We are still facing a challenging environment but are very pleased to see positive indicators of stabilization in our overall business," said Ron Sanders, President, DEG and President, Warner Home Video. "We are encouraged to see consumers continue to realize the tremendous value of Blu-ray and growing more comfortable with digital delivery."

According to figures compiled by the DEG based on data from CEA, retailers and manufacturers some 75 million HDTVs have sold to consumers. With some 4.7 million HDTVs selling in the first quarter, U.S. household penetration is at approximately 50 million. Nearly 34% percent of all HDTV owners have more than one set.

The DEG compiles quarterly sales data for various products within the home entertainment category, including Blu-ray Disc, DVD and HDTV. The industry association compiles its data based on input from member companies, retailers and industry association tracking sources.