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SNL Kagan Expects Blu-ray to Drive Growth in Home Video Revenue over the Next Decade
Posted Feb 4, 2009 Print Version     Page 1of 1
  

A new SNL Kagan study, “The State of Home Video,” forecasts a new wave of revenue growth in the retail home video business over the next decade, generated by the emergence of Blu-ray Disc as the next-generation DVD format.


While the current impact of Blu-ray has been relatively minor (standard DVD still comprises 97.1% of the market), SNL Kagan projects that high-definition DVD will attain 59.7% market share in 2014, with $13.1 billion in revenue. By 2017, this figure is expected to soar to 73.8%, or $15.6 billion.
 
The SNL Kagan study points to 2010 as the start of the resurgence in retail revenue. Sales of Blu-ray players are expected to grow from $255.4 million in 2008 to $1.3 billion in 2010, reaching mass-market penetration and spiking to nearly $6.9 billion in 2013.  
 
However, Blu-ray’s unrivaled dominance may be short-lived, with video-on-demand (VOD) poised to become a major force in home entertainment after 2017. SNL Kagan estimates that there will be 98.8 million high-speed Internet homes capable of delivering VOD in 2017 compared to 115.2 million high-definition DVD homes.
 
“Blu-ray will be the driving force behind the video retail market throughout the next decade,” said Wade Holden, analyst at SNL Kagan. “The current economic climate, however, will slow the growth of this new format and likely keep it from reaching the heights that it may have in better times. VOD services will continue to improve in both technology and content over the next decade and begin to draw consumers away from Blu-ray and DVD by 2017.”

“The State of Home Video” is an in-depth analysis of various segments of the video industry including: DVD and VHS Hardware, Performance Benchmarks, Retail Rental and Sell-Through, Sell-Through Titles, High-Definition DVD, Suppliers and Video-On-Demand.
 
Reports such as "The State of Home Video" are available exclusively as part of the SNL Kagan Unlimited Information Service. For more information on this report and other media and communications data within the SNL Kagan Unlimited, call 866.296.3743 or email SNLKaganSales@snl.com.
 
About SNL Kagan
SNL Kagan, a division of SNL Financial LC, is a comprehensive resource for financial intelligence in the media and communications sector, including the broadcasting, cable, entertainment, motion picture, telecom, wireless, satellite, publishing and new media industries. The SNL Kagan suite of products integrates breaking news, comprehensive data and expert analysis into an electronic database available online and updated around the clock. For more information, visit www.snlkagan.com.



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