Demand for the CD is Still High –>

According to publicly available data for the UK and the USA, spending on video entertainment increased between January and March 2013 compared to the same period in 2012. The rate of growth was even stronger, increasing video entertainment spending by a total of 10.1% in the UK market alone. This number includes both physical and digital forms, but hear this: value sales for physical formats are up 7.2%!

First and foremost, of course, is the caliber of newly released films, and so far there have been a lot of fantastic performing releases including Skyfall, Twilight Saga, and Madagascar 3, to name a few. In fact, according to official chart data, new releases have increased by 24% year to date, indicating that the industry’s confidence is still high.

Why then do we still hear so many skeptics about the disc’s future? According to recent statistics, physical media purchased accounts for 67% of the market, physical media rented accounts for 11%, and digital exclusively accounts for 22%. How is it possible to distrust 78% of the market value when growth is still strong?

When you look at the whole picture, it still demonstrates that DVDs are performing well even if Blu-Ray is obviously displaying the fastest growth for physical media. In fact, sales of Blu-Ray discs alone have climbed by an astounding 44% during this period. Even while Blu-Ray’s growth rate appears to be outstanding, the market share for video content on physical discs is still only 18% of overall revenue from sales of physical formats. Hence, 82% for DVD? It doesn’t appear to be as dark!

Nobody disputes the increasing demand for digital, but these statistics show that this does not imply that physical is being replaced by digital. Spending on both digital and traditional media is increasing, therefore expansion across both platforms can only be good for the entertainment business as a whole.

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