Posts for 'DEG'

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Welcome to this week’s edition of Inside the Stream, the podcast where nScreenMedia’s Chief Analyst Colin Dixon and I take listeners inside the world of streaming video.

Hollywood is in a deep, dark box of its own making. On this week’s podcast, Colin and I explain why that is and what the implications are.

Earlier this week I wrote about how Matt Damon provided a “Hollywood 101” class in the fundamental economics of why making movies in the $30 million - $70 million budget range has become practically a non-starter in Hollywood (except very rare exceptions like “Stillwater”).

Then Colin shares all the relevant new data from DEG highlighting how SVOD has essentially sucked all the life out of DVD and digital sales and rentals of movies. Now Hollywood is going to exacerbate this trend by shortening the window of time from theatrical release to premiering movies on their own streaming services. This will effectively kill the so-called “Pay-1 window,” depriving studios of yet another once lucrative revenue stream. There are incredibly challenges times coming up for Hollywood studios.

The biggest losers in all of this are us, the moviegoing public. Today’s is not a happy podcast. Neither Colin nor I see any Hollywood endings to this story. But again, life is unpredictable, so you just never know.

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I’m pleased to present the 402nd edition of the VideoNuze podcast, with my weekly partner Colin Dixon of nScreenMedia.

This week we start by discussing Hulu’s growth to over 17 million subscribers, which it reported earlier this week. Both of us are impressed by the numbers, which makes Hulu a firm #3 in the SVOD market. The key number that we’d like to know is how many new subscribers are taking the ad-supported version, which has dominated in the past.

Hulu’s and SVOD’s growth have come at the expense of viewers owning and renting video, as Colin explains in his review of recent Q4 ’17 DEG data. DVDs fell a whopping 22% vs. Q4 ’16 and rentals were down as well. The only category that grew was SVOD. Related, the dominance of SVOD makes me wonder how Apple is going to monetize its high-profile original TV shows. If Apple sticks with a transactional model it will be facing serious headwinds.

Finally, Colin shares a few thoughts on CES product news from Samsung, LG and Intel.

Listen in to learn more!

 
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Digital purchases of movies in the U.S. boomed in 2014, to $1.55 billion, up 30% from $1.19 billion in 2013, according to new data from the Digital Entertainment Group. However, the $360 million increase was more than offset by a decline in purchases of physical movies (DVD and Blu-ray) of $844 million in 2014, to $6.93 billion, an 11% drop. In fact, as the chart below shows, physical sales have declined by over $2 billion since 2011 when they were nearly $9 billion. 

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