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

DisplaySearch (an NPD company) announced the findings of its Quarterly TV Design and Features Report. The firm estimates that:

  • 3D TVs will grow from 0.2 million units in 2009 to
  • 1.2 million units in 2010
  • 15.6 million units in 2013
  • 64 million units in 2018

Figure 1: DisplaySearch 3D TV Set Forecast

Source: DisplaySearch Quarterly TV Design and Features Report

DisplaySearch forecasts that over 70 million connected TVs will be shipped in 2012—up from around 15 million in 2009.

Figure 2: DisplaySearch Connected TV Forecast

Source: DisplaySearch Quarterly TV Design and Features Report

According to  Quixel Research, 50% of consumers want 3D home theaters and 80% have already watched something in 3D.

The second annual 3D study, 3D Displays and Content 2009 pulled opinions from 1,000 HDTV owners and found:

  • 78% of respondents have had a 3D experience
  • 50% are interested in watching 3D at home
  • More than 33% of those surveyed expect 3D TV within 12 months
As HDTV manufacturers shift to 3D as the next big technology to move high-end TVs where they make better margins, the opportunity for 3D gaming will continue to grow.

A recent study by In-Stat, predicts mass adoption of Ultra HD TVs will stretch into the 2020s. Ultra HD comes in: 4K (3840×2160) 4x 1080p resolution; and 8K (7680×4320) 16x 1080p resolution. In-Stat also predicted:

  • 40% of North American homes will have Ultra HD sets by 2025
  • 28.2% of European homes will have Ultra HD sets by 2025
  • 20 million Ultra HD sets will be shipped in North America by 2025
  • It will take 5-10 years before displays reach 5% of all homes
  • Broadcasters won’t begin offering Ultra HD content until 2017
  • A number of consumer-electronics manufacturers are already exploring the higher formats, and theatrical film makers are already producing 4K content for digital cinemas.
  • Digital cinemas are already exhibiting 4K content and creating infrastructure for 4K and 8K content
  • 1080p and 3D content will become more widely distributed before Ultra HD arrives in the home

For game makers, this should give an idea of how much the art requirements are going to change on games such as Modern Warfare 6 and Grand Theft Auto 11 (ok that was a joke).

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.