Consumer Spending on Home Entertainment Tops $20 Billion for First Time Since Great Recession

Home entertainment spending in 2017 came in at an estimated $20.5 billion, up 5.26% from 2016, DEG says.

As expected, the gains came largely on the digital side, with total digital spending up nearly 20% to $13.7 billion.

Subscription streaming accounted for the bulk of digital spending growth, with consumer spending on streaming jumping more than 31% to an estimated $9.6 billion – although DEG cautions that one reason for the pronounced jump is that the trade group is including a broader spectrum of OTT service, including Amazon Prime, whereas in the past the streaming revenue figure was based primarily on Netflix.

Consumers in 2017 spent an estimated $2.15 billion on the electronic purchase of movies and other filmed content, up nearly 6% from the prior year. This growth was driven by a 12% increase in the purchase of theatrical films, DEG says.

Spending on discs was down 14.1%, to an estimated $4.7 billion.

Sales of 4K Ultra HD TVs, players and content “was again strong” in 2017, DEG said in a news release. More than 14.6 million 4K UHD TVs were sold in 2017, bringing the number of total households to more than 30 million.

In addition, DEG said, there are approximately 8 million households with 4K UHD Blu-ray Disc playback devices (including set-top players and game consoles).

HDTV (including 4K UHD) penetration now totals more than 120 million households.

Blu-ray Disc playback devices (including set-tops and game consoles) are now in 97 million U.S. households.

The number of 4K Ultra HD titles in the market grew to 267 titles at the end of 2017, representing some $147 million in sales – a growth rate of 187% over the prior year.

Among the best-selling titles overall for 2017 were Moana (Walt Disney Studios); Rogue One: A Star Wars Story (Walt Disney Studios); Beauty and the Beast (Walt Disney Studios); Wonder Woman (Warner Bros. Home Entertainment); Trolls (DreamWorks Animation, Twentieth Century Fox Home Entertainment); Sing (Universal Pictures Home Entertainment), Guardians of the Galaxy Volume 2 (Walt Disney Studios); Fantastic Beasts and Where to Find Them (Warner Bros. Home Entertainment); Logan (Twentieth Century Fox Home Entertainment); and Doctor Strange (Walt Disney Studios).

BDA Begins Licensing Next-Generation Specs

The Blu-ray Disc Association (BDA) Jan. 8 said it has begun licensing of the latest Blu-ray Disc format expansion.

As of Jan. 1, companies can license specifications for next-generation broadcast recordable Blu-ray Disc format, which allows consumers in the Japanese market to record, view and archive Ultra HD broadcast content on new BD-RE XL media, as well as on legacy BD-R and BD-RE discs.

“Blu-ray Disc’s large data capacity has made it a top choice for archiving personal video content,” the trade group says. In Japan, where there are three times more Blu-ray recorders in homes than there are players, it’s widely used for recording and archiving broadcast content.

According to JEITA, more than 2 million Blu-ray recorders were shipped in 2016 and a similar number is forecasted for 2017, while approximately 600,000 Blu-ray players were shipped during the same years.

“Due to different business models and certain cultural aspects in Japan, Blu-ray recorder sales have outpaced player sales since the introduction of the format,” said Victor Matsuda, chair of the BDA Global Promotions Committee.  “Recording and archiving broadcast content is common in Japan and, with Ultra HD broadcast scheduled to launch there towards the end of 2018, adding Ultra HD recording capability was a given for the BDA and is an important benefit for Japanese consumers.”

Highlights of the Ultra HD Blu-ray recordable specifications, which were completed in November of 2017, include:

  • Recording and playback of Ultra HD broadcast streams at up to 100Mbps in new BD-RE XL media
  • Recording of Ultra HD broadcast streams on legacy BD-R/BD-RE media
  • New File system specifications for recording AV streams up to 100Mbps
  • AACS2 recordable technology
  • Support for HEVC and HDR (Hybrid Log Gamma)

The new BD-RE-XL discs will allow for more than two hours of recording, even in the case of 100Mbps AV streams. “And as has always been the case, Ultra HD Blu-ray recorders are required to play current Blu-ray, BD-R and BD-RE discs, meaning that consumers can continue to enjoy their existing recorded content collections as well as the vast 10,000+ title Blu-ray Disc library and the continually growing catalog of Ultra HD Blu-ray Discs,” the BDA says.

The BDA also is launching a series of videos to help consumers better understand 4K UHD.  All five videos have been uploaded to the BDA’s website and YouTube channel and are now live.

UHD Alliance Signs Google, Eyes Consumer Education

Five months after taking charge of the UHD Alliance as its first full-time president, longtime consumer electronics executive Mike Fidler on the eve of CES 2018 unveiled an ambitious agenda to not just grow membership, but also to increase consumer education and maximize device interoperability for a better user experience.

The push comes amid word that Google has joined the trade group, a global coalition of leading film studios, consumer electronics manufacturers, content distributors and technology companies seeking to promote the next-generation premium in-home entertainment platform, which offers 4K resolution as well as a mix of other features that include high dynamic range, wide color gamut, high frame rate and immersive audio, among other features.

Fidler, known in the home entertainment community for his work with Pioneer Electronics and Sony Electronics and as a founding board member of DEG: The Digital Entertainment Group, came to UHDA in August 2017 at a time when the group’s focus was changing. Previously, he said, the group was engaged primarily in developing UHD specifications and expanding licensing. While beefing up membership is still a goal, he said, the group is now focusing on a consumer and press engagement push in the hopes of expanding UHD’s user base beyond early adopters.

“We want to move to a new level of engagement with consumers and the press and to broaden the marketplace beyond just early adopters,” Fidler said. “In accelerating the adoption of UHD, we need these groups to understand what it is and what it does or does not do.”

The group recently launched its consumer web site, experienceuhd.com, with a list of all UHDA-certified products, links to member web sites, answers to frequently asked questions, advice on setting up home theaters, and detailed information about the features required for a device to earn UHDA certification.

“Our job is to break it down and emphasize the benefits of HDR, 4K UHD resolution, wider color spectrum, 10-bit color depth and immersive audio, Fidler said in a DEG blog posting.

Two logos, Ultra HD Premium (for TVs, Ultra HD Blu-ray Disc players and pre-recorded content) and Mobile HDR Premium (for laptops, tablets, phones and other battery-operated devices), promise certified products will meet or exceed strict performance levels for 4K resolution and high dynamic range, along with recommendations for immersive audio. The Ultra HD Premium and Mobile HDR Premium logos are intended to help convey that and confer a “Good Housekeeping seal of approval”-type cachet on products that carry them, says Fidler.

“One of the Alliance’s key messages to consumers will be around HDR,” Fidler said. While HDR was not part of the original 4K specification, it is an important and very visible improvement in picture quality set forth by the major studios.

Another part of the UHDA’s education program is working with retailers and manufacturers to help set expectations for consumers about what they can expect to see and what is currently available.  An abundance of content “will happen,” Fidler said in the DEG blog posting, “but not at the pace people might expect.”

While there are more than 250 Ultra HD Blu-ray Disc titles in the marketplace and streaming services including Netflix and Amazon regularly make content available in 4K UHD, broadcast content availability is sparse but growing.

DEG Gives Movies Anywhere First-Ever Innovation Award

Trade group DEG: The Digital Entertainment Group during its annual reception at CES on Jan. 9 will showcase its Achievement Awards, honoring the best 4K UHD hardware and software products released during 2017.

Movies Anywhere also will be honored by DEG leadership with the new DEG Emiel N. Petrone Innovation in Entertainment Technology Award.

The reception will promote 4K UHD products and content in various ways, with reception sponsor Redbox celebrating its plans to test 4K content at kiosks in 2018 by presenting one reception guest with the ultimate 4K home entertainment center, including a Sony BRAVIA OLED 4K HDR TV, winner of the DEG: Excellence in 4K UHD Product Award; a gaming system; and peripherals including a sound bar and gaming headset. All attendees prior to the drawing will receive a chance to win the grand prize, presented during the reception by Redbox CEO Galen Smith.

The DEG Emiel N. Petrone Innovation in Entertainment Technology Award honors the memory of the DEG’s founding chairman, the late Emiel N. Petrone. The new award recognizes a technology development release in 2017 that has created new opportunities for the home entertainment industry.

The first DEG Emiel N. Petrone Innovation in Entertainment Technology Award winner is Movies Anywhere, the Disney-owned industry initiative that at launch last October brought together films from five major studios (Sony Pictures Entertainment, The Walt Disney Studios – encompassing Disney, Pixar, Marvel Studios and Lucasfilm, Twentieth Century Fox, Universal Pictures and Warner Bros. Entertainment) with four key digital retailers (Amazon Video, Google Play, iTunes and Vudu) to provide movie owners with the ability to store their digital content in the cloud and access it across a wide range of devices and platforms.

Nominations by DEG leaders focused on those innovations that generated significant new trends in home and mobile entertainment. Voters recognized Movies Anywhere as “the best innovation we’ve had in years, with huge potential to come” and “this year’s innovation that has the best chance of transforming our industry.”

Winners of the Excellence in 4K UHD Awards were selected by a panel of product reviewers from the industry’s home theater enthusiast and business publications, including Media Play News. One hardware and one software product will be awarded with the top honors.

Blade Runner: The Final Cut 4K Ultra HD Blu-ray Disc, from Warner Bros. Home Entertainment, is recognized with the DEG: Excellence in 4K UHD Content Award. The criteria for the Content Award include demonstrated excellence in 4K image capturing/transferring; HDR encoding; wide color rendering; and immersive (object-based) audio.

The DEG: Excellence in 4K Product Award goes to Sony Electronics for its Sony BRAVIA OLED 4K HDR TV. For the Product Award, criteria include delivery, on a consistent basis, of outstanding audio/video performance, convenience and versatility. Sony’s OLED TV boasts more than 8 million self-illuminating pixels and sound that comes from the entire screen, with the industry’s first Acoustic Surface.

“As home entertainment consumers increasingly demand enriched visual and audio experiences, delivered in a more convenient and frictionless way than ever before, DEG member companies are moving quickly to not only meet their needs, but to introduce them to new possibilities,” said Amy Jo Smith, DEG president and CEO. “DEG is delighted to recognize Sony Electronics and Warner Bros. as purveyors of best-in-class 4K UHD for the home, and Movies Anywhere as a model of seamless content delivery perfectly positioned for the future.”

A Look Back at CES 2017

As yet another CES opens in Las Vegas, Media Play News is taking you back to the last big show in January 2017, with some sights from the show floor; the annual party hosted by DEG: The Digital Entertainment Group; and the Fox Innovation Lab press event demonstrating its virtual reality experience for the “Planet of the Apes” franchise. Click on any photo to start gallery.

 

Redefining Home Entertainment – Welcome to Media Play News!

Welcome to Media Play News, dedicated to informing, educating, and entertaining everyone involved in the business of bringing entertainment home.

We have launched a new responsive website filled with the latest news, research and analysis, reviews, and blogs essential for your business.

We are unveiling a new daily e-newsletter and breaking news alerts to keep you in the loop with the latest home entertainment news.

Later this month, we will debut a new monthly magazine that will be available in both print and digital editions, a carefully curated collection content culled from our website and 24/7 industry coverage.

And we are beginning the new year with an invigorated social media push, augmenting our Facebook and Twitter pages with Instagram and, soon, a new YouTube channel focused on bringing our content to the masses.

Our team has had a good run as Home Media Magazine under Questex LLC, and as Video Store Magazine under Advanstar before that.

And now, as we begin our third chapter, as Media Play News, I sincerely hope I can count on your continued support as we embark on this ambitious and exciting new venture.

We believe our industry both needs and deserves an independent trade publication – perhaps now more than ever – to cover our business from an insider’s perspective, with a focus on what’s important to you.

We reach a broad audience of retailers, both digital and physical, as well as a growing group of analysts, entertainment and technology reporters, and other consumer influencers.

We are your voice, your representative – and we will continue to champion and advocate for our industry in our blogs and columns while providing the world with first-class coverage of the home entertainment industry and its ongoing evolution.

I’d like to make it clear that we are not just reinventing ourselves. We intend to redefine the very concept of home entertainment. Initially, home entertainment was renting movies on videocassette. Then it became the sale or rental of discs, first DVD and then Blu-ray Disc.

Today, home entertainment is a multi-faceted industry that ranges from disc to digital distribution, from Redbox to Roku, from iTunes to Netflix. And with the promise of premium VOD, the home entertainment business – with its guiding principle of bringing entertainment home – stands to play an increasingly greater and more significant role in the overall entertainment business.

Bringing entertainment home. That’s what you’re all about – and that, too, is what we are all about.

‘Despicable Me 3’ Tops Overall Disc Sales for Third Week, ‘Dunkirk’ Tops Blu-ray Sales

Once again, Universal Pictures’ Despicable Me 3 was the top-selling disc the week ended Dec. 23, 2017, despite the arrival of two popular new releases.

The fourth installment in the computer-animated comedy-adventure series produced by Illumination Entertainment topped the NPD VideoScan First Alert sales chart, which tracks combined DVD and Blu-ray Disc unit sales, for the third consecutive week. Two newly released Warner Bros. films, Dunkirk and The Lego Ninjago Movie debuted at No. 2 and No. 3, respectively.

Dunkirk did manage to replace Despicable Me 3 as the top-selling Blu-ray Disc, bowing at No. 1 on the dedicated high-definition disc chart, with the feature-length cartoon coming in at a close No. 2.

The war film, which depicts the evacuation of Allied soldiers from Dunkirk, in the north of France, during World War II, earned more than $188 million in U.S. theaters and according to NPD statistics sold 98.9% as many units its first week in stores as Despicable Me 3 did in its third week of availability.

The Lego Ninjago Movie, the third in a series of animated films based on the Lego building toys, vastly underperformed its two predecessors at the box office, earning less than $60 million in U.S. theaters — about a third as much as its immediate predecessor, The Lego Batman Movie, released earlier in 2017. Ninjago debuted at No. 4 on the Blu-ray Disc sales chart, behind 20th Century Fox’s Kingsman: The Golden Circle, which in its second week of release slipped to No. 4 on the overall disc sales chart after a No. 2 bow the prior week.

Rounding out the top five on the overall disc sales chart was Walt Disney’s Cars 3, down from No. 4 the prior week. On the Blu-ray Disc sales chart the No. 5 spot went to Sony Pictures’ Spider-Man: Homecoming, which moved up a notch more than two months after its initial home video release.

According to VideoScan, Blu-ray Disc accounted for 60% of total unit sales of Dunkirk and 58% for The Lego Ninjago Movie.

On Media Play News’ rental chart for the week ended Dec. 24, Kingsman: The Golden Circle shot up to No. 1 now that it’s week-long holdback from Redbox kiosks is over.

Universal Pictures’ Atomic Blonde, the previous week’s top rental, slipped to No. 2, followed by two Lionsgate films, The Hitman’s Bodyguard at No. 3 and American Assassin at No. 4.

Rounding out the top five on the rental chart was 20th Century Fox’s Detroit, a period crime drama commemorating the 1967 murder of three black teens by police during the racially charged 12th Street Riot.

Continue reading “‘Despicable Me 3’ Tops Overall Disc Sales for Third Week, ‘Dunkirk’ Tops Blu-ray Sales”

Movies Anywhere Lives Up to Its Name

I have a new morning ritual. While sipping my first (of two) cup of coffee and catching up on my email and the latest news, all on my iPhone, I now also invariably finish the movie I fell asleep watching the night before.

Yes, I am at that age where I begin to nod off well before the closing credits. And until just recently I would finish watching a movie the next night, before starting a new one. But thanks to my new ritual, I now start a movie every night, which by my estimation has increased the number of movies I watch by at least 30%.

What changed? The mid-October launch of Movies Anywhere, a remarkably simple and easy to use digital storage locker that lets me watch any film in my library with a couple of clicks on my iPhone button. All the major studios, except for Paramount, are participating, and the beauty of Movies Anywhere is that even for people like me who still buy Blu-ray Discs, entering the redemption code so I gain access to a digital copy takes just seconds – and then the movie is available on my iPhone, my TV, and anywhere else I have the app. (In fact, while writing this paragraph I just entered the code for Annabelle: Creation and watched it instantly appear on my iPhone. I will start watching it tonight – probably on disc, just out of habit – and then whatever I missed will be viewed in the early morning, with a Keurig cup of bold Sumatra, after the obligatory cleansing of emails and quick look at the news headlines.)

I have a confession to make. While I consider myself an early adopter, both because of my role in the industry and my natural curiosity and yen to be on the cutting edge of new and cool stuff, my digital movie experience has been limited to Netflix, Amazon and Hulu. I have never bought a movie online; I set up an UltraViolet account years ago but never used it, not even once. I keep writing that consumers value convenience, simplicity and ease of use, above all else, and I might as well have been writing about myself. I rarely make myself a salad, preferring the salad-in-a-bag approach. I vastly prefer Uber to taxis, and order most of my stuff online – even my Keurig coffee cups – because I hate waiting in line.

The problem was, prior to Movies Anywhere, watching digital copies of movies I acquired was too much of a hassle. There were too many sites to visit, too many passwords to enter, too many steps to take.

Movies Anywhere is as easy as watching Netflix. And that’s why I believe our studio friends have gotten it right this time. Sure, there are still hurdles to overcome – chiefly the other main driver of consumer behavior, the desire to get things for free or, at the very least, for as little as possible. It’s still going to be a challenge to convince consumers who are used to spending around $10 a month for unlimited Netflix content to fork over more than that for a single movie, regardless of how new that movie is, or how much hype it has generated.

Still, everything else is in place. The stage has been set for digital ownership to really take off, once consumers realize the value proposition of instant access – and immediate (or, in my case, morning-after) satisfaction.

Home Entertainment’s Mantra in 2017 was ‘Just Keep Swimming’

At this year’s Video Hall of Fame ceremony in Beverly Hills in December, Janice Marinelli, president, Disney/ABC Home Entertainment & Television Distribution, for The Walt Disney Studios, drew solid applause when she advised her fellow home entertainment executives to “just keep swimming.”

The line, from the hit Disney film Finding Nemo, seemed to resonate with the several hundred execs in the room, many of whom have been contending with increasingly choppy seas for the better part of a decade.

In fact, 2017 marked the 10th anniversary of Netflix’s decision to transition its subscription approach from disc rentals by mail to digitally delivering content over the Internet – a truly disruptive moment that shattered the traditional home video model. Year after year, disc sales plummeted as consumers planted themselves on their sofas for a nightly steam of at first studio discards and then an increasingly compelling menu of original programming.

In the first nine months of this year, numbers provided by DEG: The Digital Entertainment Group show, more than 40% of the money consumers spent on home entertainment in the first nine months of 2017 was generated by Netflix and other subscription streaming services, up from 34% in 2016 and 29% in 2015.

Sales of Blu-ray Discs and DVDs, meanwhile, accounted for 24% of consumer home entertainment spending in the first nine months of 2017, down from 27% in the comparable period in 2016 and 31% in 2015.

In the first nine months of 2011, by contrast, streaming accounted for just 3.8% of the home entertainment business, with disc sales accounting for 46%, or $5.6 billion – compared to $3.26 billion in the first nine months of 2017.

“The [disc sales] business remains under pressure, due to the growing number of entertainment options,” says Eddie Cunningham, president of Universal Pictures Home Entertainment. “Nonetheless, studios and retailers continue to aggressively champion the category, looking to create the most compelling and meaningful opportunities to eventize our disc products and deliver the best, most exciting shopping experience possible.”

“Physical media continues to be an integral component of the product mix, but we need to find ways to remind consumers of the value of owning and renting discs,” adds Mark Fisher, president and CEO of the Entertainment Merchants Association (EMA).

Disney’s Marinelli says “physical consumption continues to be a vibrant, viable and top-performing line of business for us and it is also proving to be a very valuable resource in the transition to digital with e-copy redemption. This year the in-home division broke and set new records with four bestselling physical titles in the top 10 to date including tentpoles Star Wars: Rogue OneMoanaGuardians of the Galaxy Vol. 2 and Beauty and the Beast.  As viewing habits and consumer consumption rapidly evolve, we continue to evaluate our offerings on a regular basis and what will best meet the needs and demands of our customers.  This year we vigorously expanded into the 4K Ultra HD Blu-ray premium format beginning with inaugural title Guardians of the Galaxy Vol. 2, which quickly rose to the top of the industry’s 4K physical sales chart.”

Through it all, home entertainment executives have, well, just kept on swimming – and managed to keep their heads afloat through a steady string of technological advances and innovation. This year’s gold star goes to Movies Anywhere, the Walt Disney-owned digital movie service that allows consumers to buy newly released movies electronically (or redeem access codes packaged inside Blu-ray Discs) and watch them whenever they want to, on any screen, from the family room TV to their iPhone.

“Consumer centricity was without a doubt a defining characteristic of 2017, which was most notably addressed by the launch of the multi-studio digital locker Movies Anywhere,” said Disney’s Marinelli. “Movies Anywhere is a huge win for the consumer, providing them with more freedom, flexibility and utility and their digital library can now be viewed through a range of devices and digital retailers, anytime and anywhere. The strength of the studios and digital retailers that have come together at launch is unprecedented.”

Hollywood also claimed a seat at the burgeoning Ultra HD table with Ultra HD Blu-ray Disc, which experts agree is the optimum way to view 4K content , with even sharper pictures and more realistic colors than standard high-definition.

“We can expect to see the number of 4K UHD Blu-ray titles to expand considerably in 2018, as content companies  continue to release new and catalog titles in the premium format,” says Universal Pictures’ Eddie Cunningham. “As well, 4K movies, TVs and players are selling units in record numbers.  There is a clear groundswell around consumer demand and the industry is highly optimistic about the format’s future prospects.”

As Netflix and its OTT compadres continue to grab market share, studio executives – who still consider movie sales, either on disc or electronically, as their holy grail – also have had to contend with other challenges. Distribution channels have continued to proliferate, and the concept of content continues to evolve as millennials are as quick to spend an evening watching their favorite YouTuber or anime webisodes as they are the new Spider-Man movie.

“2017 really was the year of ‘more’ – more content, more provides, more devices, more technological enhancements, and more consumer choice,” said the EMA’s Mark Fisher. “Overall, this is a good thing, but it did lead to disruption of traditional business models. And we haven’t seen the end of it.”

Electronic sellthrough – also known as Digital HD – remains the most promising bulwark the studios have against continued double-digit OTT growth, but challenges remain. Consumers accustomed to spending around $10 a month for unlimited Netflix viewing might be reluctant to spend the same amount, or more, for a single piece of entertainment, even if they own it.

EST growth slowed from several years of double-digit gains to 7% in 2016, then rose slightly to 8% in the first nine months of this year. Executives hope Movies Anywhere will be the catalyst to reignite higher growth.

“On the EST front, we continue to see product, marketing and merchandising investments across the industry accelerate,” says Michael Bonner, EVP, Digital Distribution, for Universal Pictures Home Entertainment. “As a result, digital sell-through has been growing year over year and we continue to see increased consumer engagement in the category. Movies Anywhere is just the latest example of studios and distributors working together to provide more value to the consumer and setting a new bar for digital movie ownership.”

“Our focus is always on offering the best consumer experience possible, removing the barriers and offering a high-quality experience that adds value and utility to a digital movie collection,” adds Disney’s Marinelli. “Providing consumers with early digital access has been a successful way to drive consumers to the digital experience.  We continue to work closely with our digital retail partners to build a compelling in-home movie watching experience, including offering quality formats like 4K Ultra HD, as well as expanded and interactive extras – some of which are only offered digitally.”

Ultra HD Blu-ray Disc also is seen as a growth driver, particularly as the number of UHD TVs continues to mushroom.

“2017 was the year 4K UHD really took off,” said Jim Wuthrich, president, The Americas and Global Strategy, at Warner Bros. Home Entertainment. “With $200 million in global consumer sales, ample physical and digital distribution and accelerating penetration of capable TVs, content sales will continue to soar into 2018.”

“2017 was a year where we saw 4K HDR make huge strides towards becoming a mainstream part of the industry,” adds Jason Spivak, EVP, Worldwide Digital Distribution and North America Sales, for Sony Pictures Home Entertainment. “ 4K UHD physical discs are selling well, and we are seeing big advancements in 4K HDR digital services and devices.   The format is essential to our commitment to deliver the highest caliber consumer experience, and it is well on its way to mass acceptance.”

“ The number of 4K devices continues to grow, and is forecasted to triple in the next five years to nearly 350 million,” said Bob Buchi, president, Worldwide Home Media Distribution, for Paramount Pictures.  That clearly indicates that consumers have an appetite for the format, but we have to ensure that we don’t have a content gap.  At Paramount, we are committed to releasing the vast majority of new releases in 4K and have greenlit dozens of catalog titles for the format.

“We are seeing 4K UHD with HDR represent up to 10% of physical sales and a quickly growing percentage of digital sales as more platforms embrace the superior technology.  This technology is a huge boon to both consumers and filmmakers who are able to better realize their vision on home viewing platforms.  And the reality is that 4K UHD with HDR and object-based sound looks and sounds great.  It all contributes to the value proposition. “

Driving ownership of content, both physical and digital, is critical as the industry moves forward, executives agree.

“We continue to employ the most innovative and comprehensive tactics to drive ownership across both physical and digital platforms,” said Disney’s Marinelli. “We’ve had tremendous success implementing a number of strategic initiatives including pre-sale promotions, improving retail placement, expanding our social presence, producing live events and creating promotional partnerships. We are also committed to creating a superior in-home viewing experience that extends the consumer experience and deepens engagement.”

“We continually work with our retail partners to present consumers with compelling reasons to own, including superior audio and video presentations, early access, exclusive bonus features, special packaging, and more,” adds Paramount’s Bob Buchi. “Our job is to make our content readily available while maximizing revenue, which means carefully honing the distribution strategy of each title based on projected consumption. The great news is that the proliferation of platforms means consumers are enjoying our content in more ways than ever.”

Transactional video-on-demand (TVOD), which lets consumers “rent” a film or TV show for a limited streaming period, could use a shot in the arm.

“I am concerned that the consumer embrace of TVOD has not been as robust as we would have liked,” says the EMA’s Mark Fisher. “It remains a challenging business. Retailers and content providers are hesitant to invest in the category because it is not getting the desired growth, and we’re not seeing growth because investments are not being made. Delivery costs remain too high, and supply chain efficiencies need to be more widely embraced. EMA is actively working on both of those issues, and we will continue to do so because it is the right thing to do for the industry.”

Looking ahead to 2018, the prognosis among studios is essentially the same as it’s been at the end of the last few years – guarded optimism and a continued belief in the sales model.

Consumers’ appetite for home entertainment content remains remarkably robust,” says Universal Pictures’ Eddie Cunningham. “In fact, our research shows that a vast percentage of households continue to engage in the category whether via disc, digital or both.  Though there are many entertainment choices to distract consumers, offering tangible benefits unique to the format such as exceptional value, accessibility and utility of their favorite movies and TV shows reinforces the distinct advantages of ownership that you can’t get when renting or streaming.”

“I expect change to continue to be a factor in our industry in 2018 and beyond,” adds the EMA’s Mark Fisher.  “Movies Anywhere and Premium VOD, for example, will shake up the basic tenets of distribution and how and when consumers get content. Potential industry consolidations could significantly impact our industry as well. We shouldn’t fear any of this, but managing change will remain a challenge for all of us in the industry.

The home entertainment industry  “remains at the intersection of compelling content and technology, stemming from our consumers’ constant need for new and exciting experiences,” said Keith Feldman, President, Worldwide Home Entertainment, Twentieth Century Fox.

“Technology is moving at a rapid pace and we must evolve our content offerings to meet consumer expectations, which means delivering on next-generation technologies including 4K HDR, 5G and mobile content delivery, simple and functional solutions like Movies Anywhere and immersive experiences like virtual and augmented reality that accurately realize and extend the vision of our filmmakers.”

Disney’s Marinelli has high hopes for 2018. “Disney has the most impressive slate in the industry and we’re confident that 2018 will once again be a very successful year for us with the highly-anticipated in-home releases of Marvel Studios’ Thor: Ragnarok, Pixar’s Coco,Star Wars: The Last Jedi and The Walt Disney Signature Collection release of Lady and the Tramp.

“Movies Anywhere makes it easier than ever to build a digital movie collection. So far we’ve seen an incredible consumer response and believe that by offering a one-of-a kind experience, digital movie purchases will grow.  We will continue to work with the other studios and our digital retailer partners on programs to deliver exclusive content and offers that we believe will be important to driving engagement in the apps and website.”

“The choice between digital and physical is no longer an either/or proposition,” notes Paramount’s Bob Buchi. “We recognize that home entertainment has become a dynamic mix of consumption with opportunities across the spectrum.  Consumer behavior increasingly includes combinations of subscribing, transacting, renting, and buying, and greater comfort switching between digital and physical formats.  Our goal for 2018 is to make sure consumers have easy access to our content in the many ways they want to enjoy it.”

(This article previously appeared in Home Media Magazine.)