no time to die
September 23, 2022
The UK home entertainment market is expected to reach £5.5 billion ($6 billion) in consumer spending over the next three years (2025), of which £2.4 billion ($2.8 billion) dollars) spent on film sales transactions.
That’s according to a new report published on September 23 by the British Association for Screen Entertainment (BASE) and DEGI: The Digital Entertainment Group International (formerly DEG Europe).
The UK home entertainment sector was worth £3.3 billion ($3.6 billion) in 2020 and £3.7 billion ($4 billion) in 2021.
In the new report, Home Entertainment Evolution Report 2020 – 2025BASE and DEGI maintain revenue growth reflects a 114% uptick from pre-pandemic forecasts and underscores the category’s optimism showcasing the potential for multiple entertainment formats, distribution channels and access to more than 75 000 transactional securities.
“The evolution of home entertainment is in full swing…where transactional formats expand to encompass premium VOD, SVOD encompasses AVOD, joined by FAST, all providing consumer choice and taking part in the ‘increasing consumer engagement,’ Liz Bales, CEO of BASE and DEGI, said in a statement.
Citing additional information from Ampere Analysis, Futuresource Consulting, Kantar, the British Screen Forum, Digital Entertainment Group and The Digital Entertainment & Retail Association, Official Charts Company, the Intellectual Property Office and Amy Jo Smith, President/CEO, DEG: The Digital Entertainment Group, among other sources, the report claims that as consumers emerge from the pandemic, so will new movie releases and subsequent consumer spending in retail channels and rental.
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“The US market continues to be the starting point for much of the change taking place in home entertainment markets around the world, and DEG members now span the globe,” wrote Smith in the report. “As we expand our global reach, closer collaboration with DEG International to align messaging and provide communications support to members in multiple regions and territories is paramount.”
Craig Armer, director of strategic vision (entertainment), at Kantar, found that 35.1% of consumers in the UK visited the cinema at least once in the 52-week period to June 26, 2022 , compared to 46.2% during the same period in 2019. , a decrease of 24%. This downward trend then impacted the home entertainment market with a 40% drop to 5.1 million UK consumers renting or buying films, from nine million home entertainment consumers in 2019.
“Expect this [trend] to rebound over the next few years as the flow of new content becomes more consistent, attracting perhaps as many as two million additional home entertainment buyers,” Armer wrote.
At the same time, the shortage of new releases continues to drive up VOD transactions for catalog titles.
“VOD is the largest source of catalog consumers, with 3.6 million more tenants than pre-pandemic,” Armer wrote.
The analyst added that packaged media, especially DVDs, remains a profitable distribution channel for consumers. Specifically, the retail price of a new movie on DVD has hardly changed in the past nine years. Indeed, James Bond fans buying the 2013 release of celestial fall at £9.99 ($10.90) on DVD would also be able to find the 2021 release no time to die at the same price.
“Maintaining a strong visible presence for record in physical retail and continued digital adoption will ensure the industry navigates difficult economic circumstances while recovering from the disruptions of recent years,” Armer wrote.