BASE/DEGI: U.K. Home Entertainment Market to Top $6 Billion in Revenue by 2025

The U.K. home entertainment market is predicted to grow to £5.5 billion ($6 billion) in consumer spending over the next three years (2025), which includes £2.4 ($2.8 billion) spent on movie sales transactions.

That’s according to a new report, released Sept. 23, from The British Association for Screen Entertainment (BASE) and DEGI: The Digital Entertainment Group International (formerly DEG Europe).

The U.K. home entertainment sector was worth £3.3 billion ($3.6 billion) in 2020, and £3.7 billion ($4 billion) in 2021.

In the new report, The Evolution of Home Entertainment Report 2020 – 2025, BASE and DEGI maintain the revenue growth reflects a rise of 114% on pre-pandemic predictions and underscores category optimism showcasing the potential of multiple entertainment formats, distribution channels and access to more than 75,000 transactional titles.

“The evolution of home entertainment is in full force … where transactional formats expand to embrace premium VOD, SVOD embraces AVOD, joined by FAST, all offering consumer choice and taking a share of growing consumer engagement,” Liz Bales, CEO of BASE and DEGI, said in a statement.

Citing additional insights from Ampere Analysis, Futuresource Consulting, Kantar, the British Screen Forum, Digital Entertainment Group and The Digital Entertainment & Retail Association, Official Charts Company, the Intellectual Property Office, and Amy Jo Smith, president/CEO of DEG: The Digital Entertainment Group, among other sources, the report contends that as consumers re-emerge from the pandemic, so too will the release of new movies and subsequent consumer spending across retail and rental channels.

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“The U.S. market continues to be the starting point for much of the change that is flowing into home entertainment markets around the world, and DEG members now span the globe,” Smith wrote in the report. “As we extend our global reach, closer collaboration with DEG International to align messaging and provide communication support for members in multiple regions and territories is paramount.”

Craig Armer, strategic insight director (entertainment) at Kantar, found that 35.1% of consumers in the U.K. visited the cinema at least once in the 52-week period through June 26, 2022, compared with 46.2% in the same period in 2019, equating to a drop of 24%. This downward trend then impacted the home entertainment market through a 40% drop to 5.1 million U.K. consumers renting or buying movies, compared with nine million home entertainment consumers in 2019.

“Expect this [trend] to bounce back over the next few years as the flow of new content becomes more consistent, possibly attracting as many as two million additional shoppers back into home entertainment,” Armer wrote.

At the same time, the dearth of new releases continues to spike VOD transactions for catalog titles.

“VOD is the largest source of catalog consumers, with 3.6 million more renters vs. pre-pandemic times,” Armer wrote.

The analyst added that packaged media, notably DVD, remains a cost-effective distribution channel for consumers. Specifically, the retail price of a new movie on DVD is virtually unchanged over the past nine years. Indeed, James Bond fans buying the 2012 release of Skyfall at £9.99 ($10.90) on DVD would also be able to find the 2021 release No Time to Die at the same price.

“Maintaining a strong visible presence for disc in physical retail, and continuing the drive for digital adoption, will ensure the industry navigates challenging economic circumstances whilst recovering from the disruption of the last few years,” Armer wrote.

Digital Entertainment Group International Bows First ‘Mega Movie Week’ Promotion in Germany

The Digital Entertainment Group International, the global arm of the DEG focused on the home entertainment sector, May 13 helped to launch Germany’s first ever “Mega Movie Week” in partnership with The Federal Association for Audiovisual Media (Der Bundesverband für Audiovisuelle Medien e.V./BVV) and the Society for the Promotion of Audiovisual Media (Die Gesellschaft zur Förderung audiovisueller Medien mbH/FAM).

Through May, 16 distributors are offering a selection of current movies at reduced prices across 11 digital platforms.

With “Mega Movie Week” Germany, the DEGI is evolving the model and creative of the popular “Mega Movie Week U.K.” and Nordics campaigns of the last few years. The campaign aims to drive awareness, engagement and transaction by educating new consumers on the benefits of the electronic sellthrough format and encouraging trial and participation in the category.

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“Mega Movie Week” is available to German consumers on Amazon Prime Video, Apple TV, Chili, Maxdome Store, Microsoft, PlayStation, Rakuten TV, Sky Store, Videobuster, Videociety and Videoload.

More than 200 titles include German favorites After Truth to German-language movies Es ist zu Deinem Besten or Gott, Du Kannst ein Arsch Sein! to Disney/Pixar’s Soul and Warner Bros.’ 1917 and Tenet.

Distributors taking part in “Mega Movie Week” include Constantin Film, DCM Film Distribution, Edel Motion, Koch Films, LEONINE Studios, Lighthouse Home Entertainment, Neue Visionen Medien, Paramount Home Entertainment, Splendid Film, Sony Pictures Home Entertainment Germany, Studiocanal, Tiberius Film, Tobis Film, Universal Pictures Home Entertainment, The Walt Disney Co. and Warner Bros. Home Entertainment.

DEG Nordic Launching ‘Mega Movie Week’ Promo to Drive Digital Transactional Market

As consumers around the world stay home during the coronavirus crisis, The Digital Entertainment Group: Nordic Committee (DEGN) March 23 is launching “Mega Movie Week,” a cross-category campaign to drive consumer engagement with the digital transactional market.

During “Mega Movie Week” DEGN members, including NBCUniversal, Nordisk Film, SF Studios, Sony Pictures Home Entertainment and Warner Bros. Entertainment, will offer consumers a range of the latest digital movies at special prices for one week only with retailers including the Apple TV app, Google Play Store, Viaplay, SF Anytime, Blockbuster, PlayStation Store, Rakuten TV, Canal Digital, Altibox and Elisa.

“Inspired in part by shared learnings from two successful iterations of ‘Mega Movie Week’ managed in the U.K. by DEGN’s sister association, Digital Entertainment Group International, and by the evolution of previous Scandinavian consumer education campaigns, the DEGN’s ‘Mega Movie Week’ campaign drives awareness for a range of compelling consumer offers aimed at encouraging consumer trial of digital transactional services,” according to DEGN.

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The campaign will be supported by a targeted, multi-territory online media campaign, with digital platforms driving further engagement through a range of on- and off-platform activity and a suite of CRM plans to keep new audiences engaged beyond the week-long campaign, according to DEGN.

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“’Mega Movie Week’ represents an unprecedented collective vision from Nordic territories to embrace an opportunity to capitalize on the growth of digital transaction by encouraging engagement through a compelling, limited time offer,” said Johan Mannerhill, DEGN chair and managing director, Nordic, at Warner Bros. Entertainment, in a statement. “The campaign is the perfect way to drive engagement with the ease of digital purchase and to increase awareness of the benefits it offers. We hope to build upon the learnings from previous ‘Mega Movie Week’ activations spearheaded by the DEGI, at the same time developing a powerful activation wholly relevant to local markets.”

More details on the program are here:

  • DK (Denmark)
  • FI (Finland)
  • SE (Sweden)
  • NO (Norway)

Offers and platforms will vary across territories taking part.