Watching a movie at home is a family tradition for many. For larger families especially, the cost of going to see a movie in a theater is prohibitive. Compared to the cost of buying a DVD of the movie outright, the investment into the DVD makes more sense.
Movie Watching Trends
Young children especially can enjoy movies at home on their own time thanks to DVDs.
Even though the sale of digital movies through online sites like Amazon or iTunes is surging, they only account for $1.19 billion of the $18.22 billion home entertainment industry sales in the United States that occurred in 2013. Though this is far from the peak of DVD sales that occurred in 2004, it is an increase in overall sales of 0.7% from the 2012 home entertainment figures. Total DVD sales accounted for $7.78 billion of this overall figure, which is a decrease of over 9%. Despite the top three DVDs in 2016 generating a combined revenue of over 90 million U.S. dollars, the DVD industry is still under threat from new technologies.
Top DVD Sales for 2013
1. The top selling DVD in the United States was The Twilight Saga: Breaking Dawn Part 2 with over 4.8 million units sold for a total revenue figure of $71.6 million.
2. The top selling children’s DVD was Wreck-It Ralph, which sold 2.8 million units for a total revenue figure of $53.7 million.
3. Breaking Dawn sold as a combined unit for Parts 1 & 2 together over 1 million copies for revenues of $42 million.
Takeaway: Though the DVD industry may not be considered as very strong, popular movies still create strong showings within the retail industry. Twilight movies, for example accounted for over 10% of total DVD sales all on their own! It may not be the fact that DVD sales are declining. It could be more that Hollywood is producing fewer popular hits than in the past.
Additional DVD Sales Facts
1. Multi-platform streaming rights DVDS, including digital, Ultraviolet, and even Blu-ray discs are keeping the DVD industry active, allowing families to have multiple options.
2. Movies that are kid-friendly will always be popular, accounting for one-third of the Top 15 movies in DVD sales in 2013.
3. DVD sales allow movies to have staying power as revenue generators for studios. Star Trek was released in 2009, yet cracked the Top 90 in DVD sales for 2013 with nearly 500,000 copies sold for an additional $4 million.
4. The Sandlot is an even better example of this as it was released in 1993, yet cracked the Top 100 of DVD sales for 2013 and supplied $2.3 million in revenue.
5. DVD sales aren’t just about entertainment options either, as Gillian Michaels 30 Day Shred workout series made the Top 70 in DVD sales in the United States in 2013.
6. Skyfall was the #6 movie in DVD sales in the United States, but this James Bond movie was the #1 best selling DVD in the United Kingdom.
7. $4.27 billion was spent on DVD rentals in 2013.
Takeaway: DVDs are likely here to stay for the long haul, but the idea of a disc will be reversed. Right now you buy the DVD and you get the digital rights to the movie as well. In the future, it seems likely that you’ll purchase the digital rights and then get the disc as an add-on.