Internet to Surpass DVDs in Movie Consumption | The Mary Sue
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Internet to Surpass DVDs in Movie Consumption

According to IHS Screen Digest, this year, more people will stream movies over the Internet than watch them on DVDs. However, though this is an monumental (though unsurprising) landmark for Internet streaming, Screen Digest notes that people will still be spending far less money streaming movies over the Internet than watching them on DVDs, even though they’ll be streaming movies over the Internet much more.

Screen Digest says that the number of movies either purchased or rented online, via outlets like iTunes and Netflix, will grow 135% this year, to 3.4 billion, but people will only spend $1.72 billion on digital movies, and will spend around $11.1 billion on DVDs and Blu-rays. Though you’re most likely living in a world where you don’t know anyone who actually buys DVDs anymore and doesn’t have Netflix, the disparity in revenue makes sense, as it only costs around $15 a month to stream an unlimited number of movies via Netflix alone, but it costs around $15 for one DVD. So, while someone streaming one movie per month on Netflix will make that single movie cost around the same $15 price as one DVD, each subsequent movie streamed per month divides that price tag per movie accordingly: 15 movies streamed in one month would give them each a $1 price, whereas 15 $15 DVDs purchased would come out to $225. Math makes sense, sometimes.

Screen Digest notes that in 2012, online storefronts and services will account for 57% of movie consumption, but only make up 12% of spending. They also noted that streaming accounted for 94% of online movie consumption in 2011, whereas full digital purchases only made up 1.3%.

Obviously, we’re moving to a streaming society, but it seems the DVD market is still making enough money to warrant its own existence, for now.

(via LA Times)

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