DEG: The Digital Entertainment Group released numbers on home entertainment consumer spending and it’s good news…spending is up!

  • The increase, 0.24% in the third quarter after a 1.4% gain at mid-year— is due to Blu-ray Disc sales, subscription streaming and electronic distribution
  • UltraViolet registrations have surpassed 6 million
  • As of Sept. 30, 2012, consumers this year have spent an estimated $12.342 billion on home entertainment, up from $12.215 billion for the same period last year
  • Packaged-media spending for DVD and Blu-ray Disc is estimated at $5.4 billion
  • Subscription streaming for video content was $1.68 billion for the first three quarters of 2012

    Total household penetration of all Blu-ray devices now is now close to 50 million U.S. homes

  • HDTV penetration in the U.S. now stands at more than 101 million U.S. households

According to NPD, October saw the following hardware sales in the U.S.:

Wii – 507,000 units

PlayStation 3 (PS3) – 321,00 units

Xbox 360 – 250,000 units

We would expect all of these numbers to rise for the holidays. While Wii is selling pretty well, the deep discounting retailers are putting on bundles, including $300 configurations for PS3 and 360 will push those platforms for the holidays. Also, given the fact that the $300 price point was where the PS2  really took off as a DVD player that also played games a decade ago, the Blu-ray capabilities of the PS3 are now priced at a mainstream consumer price where we should see adoption increase. It’s not a cheap Blu-ray system and will likely benefit from Blu-ray movie discounting this holiday season, as well as inexpensive HDTVs.

Video Business has an article today talking about the PS3 and it’s appeal as a Blu-ray player.

  • NPD Group said 34% of PS3 owners had never tried to watch a Blu-ray movie on their PS3
  • The number of people watching Blu-ray is higher than the number that watched DVDs on the PS2 at the same point in the lifestyle.
  • 58% bought the PS3 to play games
  • 34% bought the PS3 for games and Blu-ray movies equally
  • 8% bought the PS3 mostly for Blu-ray movies