Study: Blu-ray Sales Increase 105%, DVD Sales Fall 14% in Q1

Blu-ray disc sales increased 105 percent to $230 million in Q1 2009, while DVD sales dropped 14 percent to $2.89 billion, according to The Digital Entertainment Group.

Sales of pre-recorded media, which includes DVDs, Blu-ray and digital distribution, dropped to $5.3 billion for the quarter, marking a 5 percent drop from Q1 2008.

While consumer spending on home entertainment was down 4 percent in Q1 '09 compared to Q1 '08, the number of consumer transactions remained flat at 898 million, showing that demand for home entertainment remains high.

“When considering that this all has been achieved in the worst recession ever, it is clear that home entertainment’s stability is fueled by Blu-ray’s popularity,” says Bob Chapek, chairman, DEG and president, Walt Disney Studios Home Entertainment.

Other findings:

• Combined Blu-ray Disc and DVD revenue (year-to-date) was off 9 percent at $3.35 billion
• Digital distribution increased 19 percent to $487 million

Blu-ray compatible devices, including settop players, PC drives and PlayStation 3 consoles, are now in more than 10.5 million U.S. homes. According to Adams Media Research, about 9 million Blu-ray discs were sold in the U.S. between January and March, doubling the year-to-date sales over 2008.

Considering the effect the recession has had on other industries, DEG says the overall results are encouraging. "What we are very likely seeing here is an understandable consumer reaction to the difficult financial times in which we find ourselves," says Ron Sanders, president, DEG and president, Warner Home Video.