January 3, 2019
The British Association for Screen Entertainment (BASE) Jan. 3 reported that the home entertainment market grew by 10% in 2018 from 2017, bringing the total value of the category to £2.34 billion ($2.9 billion).
The trade group said 63% of consumers rent or stream film and TV content, while 37% choose to buy and own content either on disc or download.
Among transactional retail, 59% of consumer spending is still attributed to physical content with DVD, Blu-ray Disc and 4K UHD Blu-ray continuing to be a key drivers across the market.
The strength of new release movies, in particular, also drove performance in other areas, as evidenced by the performance of original soundtracks across the music category throughout 2018.
“The third consecutive year of growth in the video category underlines the fact that audiences remain engaged with a broad variety of home entertainment content and format options,” Liz Bales, CEO of BASE, said in a statement. “This serves as a testament to the innovation and energy that continue to drive the home entertainment category even as the high streetretail environment presents clear challenges in some areas.”
BASE said the growth of digital transactional surpassed all expectations in 2018, reaching a total market value of £400 million ($503 million), and electronic sellthrough (EST) up 36%.
The Greatest Showman (Twentieth Century Fox Home Entertainment) topped digital sales with more than 770,000 copies sold since the April release date. Other top-selling titles included titles Avengers: Infinity War (Disney), selling near 400,000 copies, with Jurassic World: Fallen Kingdom (Universal Pictures Home Entertainment) and Jumanji: Welcome to the Jungle (Sony Pictures Home Entertainment) both selling in excess of 270,000 digital copies each.
Overall, The Greatest Showman sold more than 2.68 million units, more than double the sales of the nearest competitor, with 72% of sales coming from physical formats.
Mamma Mia! Here We Go Again (Universal Pictures Home Entertainment) ended the year in second place with 86% of (1.12 million unit sales) coming from disc.
The top-10 film franchises grew their market share 17% compared to 2017. Disney’s Avengers: Infinity War, Thor: Ragnarok and Black Panther sold more than 2.5 million units combined. Sony’s Jumanji: Welcome to the Jungle sold more than 800,000 copies across physical and digital formats.
Paddington 2 (Studiocanal)and Peter Rabbit (Sony) ended 2018 ranked fifth and sixth, respectively, in sales. More than 74% of consumers bought Paddington 2 on DVD, helping Britain’s favorite marmalade-munching bear to reach number three in the standalone DVD sales chart.
Peter Rabbitwas the top children’s animated title with sales of 900,000 units across all formats. Disney’s Incredibles 2 finished second after a late November release, ahead of Coco and 2017 hit Moana at fourth. In CGI animation, StudioCanal’s Early Man proved that Aardman Animation still delights, and that stop-motion photography is not too old-school among consumers.
Among TV shows on disc, Game of Thrones: The Complete Seventh Season (Warner Bros. Home Entertainment Group) sold more than 160,000 units to top the disc chart.
Both seasons of Netflix’s The Crown (Sony Pictures Home Entertainment) finished among the top-five TV titles of the year, with season two selling more than 90,000 units and season one selling 81,000 units.
Universal Pictures ended the year as the No. 1 studio in U.K. retail with 18.4% market share in disc, and 20.1% when adding digital. BASE attributed Universal success to a diverse release slate, in addition to a distribution deal with Paramount Pictures and Dreamworks Animation’s back catalog.
Key successes included Darkest Hour, royal drama Victoria and Abdul, and horror hit, A Quiet Place. Franchise properties also performed well for the studio, with much-anticipated sequels like Mamma Mia! Here We Go Again, Jurassic World: Fallen Kingdom, Tom Cruise’s sixth outing in Mission: Impossible – Fallout (Paramount Pictures, distributed by Universal), and the final chapter for Mr. and Mrs. Grey in Fifty Shades Freed all performing strongly for the home entertainment studio.
Disney led the Blu-ray market with more than 24% volume share and 26% value share due to the performance of the studio’s continuing franchises. Disney also topped the 4K UHD chart, with half of the top 10 best-selling Ultra HD discs sold in 2018 belonging to either the Marvel or Star Wars franchises – with Avengers: Infinity War and Star Wars: The Last Jedi taking first and second place respectively.
In packaged media, Blu-ray accounted for 24.3% of disc market valueunderscored by 5.3% increase in average unit selling price – attesting to the fact that consumers are willing to invest more in a high-quality home entertainment experience.
Within the Blu-ray market, 4K UHD keeps growing, with more than 330 titles currently available on the super high-definition format and 4K disc sales now representing 13% of total Blu-ray spend.
Top-selling 4K titles included Blade Runner 2049 (Sony), with 27% of Blu-ray value generated by 4K sales and Ready Player One (Warner) at 20.2%Other top sellers included Deadpool 2 (Twentieth Century Fox Home Entertainment), Paramount’s Mission: Impossible – Fallout, and The Greatest Showman, coming in at number six in the UHD chart.
“Today’s customers enjoy a multitude of options when it comes to keeping themselves entertained and clearly continue to find a huge amount of relevance in the video category which, more flexibly than ever before, caters to every need; whether that is watching on the go, building a digital library or securing the absolute best viewing experience premium formats now guarantee,” said Bales. “We face into the New Year with a clear desire to build on successes but also to ensure that the degree of choice available remains one of the category’s great strengths.”