Thursday, November 3, 2011
Blu-ray sales Sky rocketing in 2011
You really never consider that the movie industry could be hurting due to low or no sales in DVD’s. Hollywood’s troubled, home entertainment business is finally on an upswing. The Digital Entertainment Group, which monitors consumer spending for home entertainment in the United States reports a 5% increase in this year’s sales: $3.7 billion to $3.9 billion. The extreme increase in sales in the matter of 1 year, is the first major increase since 2008. Due to the increase in Blu-ray sales, video store rentals are falling along with on-demand revenue, which has hardly increased at all over the past year. The video industry has shown a decline due to piracy, economic weakness, and digital competition. This has caused a massive decline in income from the rental and sale of DVD’s. Even the sales made in movie theatres throughout the U.S. have risen immensely. This past year, the number of homes with Blu-ray players has risen 52%. This shows a massive shift in supply. Blu-rays have also evolved from an expensive luxury good that no one knew much about, to a mid-priced good that is slowly taking over the video market. Blu-ray sales yield more money than low cost rentals from kiosks and Netflix, which are very important to the movie making industry. This increase in Blu-rays is an example of the law of supply. The quantity of the Blu-ray has increased and helped the outcome of an entire industry. This Blu-ray format was developed to enable recording, rewriting and playback of high definition video as well as storing large amounts of data. No one would have ever guessed what an impact these new video players would have. In a time where spending money on luxury entertainment is limited, it seems that with such an increase in Blu-ray sales, the Hollywood video industry is quickly turning around.