PwC: Packaged-Media Revenue to Decline 55% Through 2026

Consumer migration from packaged media movies to digital distribution continues, with new data from consulting firm PricewaterhouseCoopers (PwC) projecting that the U.S. home entertainment retail market will generate about $1.1 billion in revenue from the sales of DVD, Blu-ray Disc and 4K UHD Blu-ray  titles in 2026 — down almost 55% (or 17.5% annually) from revenue of $2.5 billion in 2022.

Sales of digital movies and TV shows should increase half of 1% annually to $6.3 billion in 2026, from $5.6 billion this year. That includes $576 million from pay-TV operators and $5.7 billion from digital platforms, including Vudu, iTunes, Microsoft Movies and Redbox Digital, among others.

Digital rentals will remain flat at $1.7 billion, with $621 million originating from pay-TV operators and more than $1 billion from digital platforms.

Meanwhile, the U.S. subscription streaming video market will continue to flourish, as revenue grows exponentially. PwC contends the SVOD market will grow 8.5% annually to $33.6 billion in 2026, up from $25.3 billion in 2022.

Paramount Q1 ‘Licensing and Other’ Revenue Declines

Paramount Global May 3 reported first-quarter revenue (ended March 31) of $491 million in its “licensing and other” business segment, which was down 42% from revenue of $853 million in the prior-year period.

The business unit, which includes Paramount Home Entertainment, said the revenue decline was primarily driven by the benefit in the prior-year period from the licensing of erstwhile theatrical release Coming 2 America and Tom Clancy’s Without Remorse to Amazon Prime Video. The Coming to America sequel’s exclusive availability on Prime Video was due to ongoing closures of U.S. movie theaters due to the pandemic.

Theatrical revenue increased $130 million in the quarter and included revenue from the first quarter releases of Scream, Jackass Forever and The Lost City, while the prior-year period revenue of $1 million was impacted by the closure or reduced capacity of movie theaters in response to COVID-19.

Paramount disclosed that another “Jackass” series is in the works for Paramount+. The pending Jackass 4.5 movie featuring footage not used in the Jackass Forever movie, is slated to bow on Netflix May 20.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

When combined with advertising, the filmed entertainment segment saw a pre-tax loss of $37 million on revenue of $624 million. That compared with a pre-tax profit of $179 million on revenue of $860 million in the prior-year period.

Paramount said the decline was due to increased marketing expense associated with quarterly and future theatrical releases.

Marvel Studios’ ‘Eternals’ Bowing for Digital Purchase Jan. 12, on Disc. Feb. 15

Disney-owned Marvel Studios’ Eternals is set to make its retail debut on all major digital platforms Jan. 12, and on Blu-ray Disc, DVD and 4K Ultra HD Blu-ray Feb. 15. The packaged-media releases will feature bonus material, including four deleted scenes and a gag reel.

Eternals, which has generated $161.9 million at the North American box office, and $396.1 million globally, follows a group of ancient heroes from beyond the stars who have protected Earth since the dawn of man. When monstrous creatures called Deviants, long thought lost to history, mysteriously return, the superheroes are forced to reunite in order to defend humanity once again.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

The ensemble cast includes Gemma Chan, Richard Madden, Kumail Nanjiani, Lia McHugh, Brian Tyree Henry, Lauren Ridloff, Barry Keoghan, Don Lee, Kit Harington, Salma Hayek and Angelina Jolie.

Bonus features include:

  • Audio commentary by director Chloé Zhao and producers Stephane Ceretti and Mårten Larsson.
  • “Immortalized” featurette — Phase 4 of the Marvel Cinematic Universe launches into the reasons why Marvel wanted to immortalize these superheroes for the MCU.
  • “Walks of Life” unveils Marvel’s biggest and most diverse lineup of Super Heroes in one film. Hear reactions from the cast on being involved in the film and the instant sense of camaraderie that was felt on the day they all joined each other in their costumes.
  • Deleted Scenes: “Gravity” — Phastos and Jack have a conversation that leads to a breakthrough; “Nostalgia” — Sprite and Makkari reminisce about humankind while overlooking the ruins of Babylon; “Movies” — Gligamesh and Kingo connect over movies while crossing the Amazon River with the rest of the team; “Small Talk” — Sprite confronts Dane in the museum about his interactions with Sersi.

Universal’s ‘F9: The Fast Saga’ Speeds to No. 1 on U.K. Home Entertainment Chart

Universal Pictures Home Entertainment’s F9: The Fast Saga sped to No. 1 on the Official Film Chart in the U.K. for the weekly retail period ended Oct. 20. The actioner made the move thanks to its release on DVD and Blu-ray Disc, which helped it outsell the chart’s top five in combined unit sales.

As a result, Disney’s Jungle Cruise was denied a second week at the top, dropping to No. 2. Disney-owned 20th Century Studios’ Free Guy finished No. 3, while catalog James Bond title Spectre finished No. 4, and Disney/Marvel’s Black Widow ended the week at No. 5. Sony Pictures Home Entertainment’s original Venom moved up five spots to No. 6.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

The week’s highest new entry is M. Night Shyamalan thriller Old (Universal), which entered the chart at No. 7 on digital downloads only. A family vacation is turned into a nightmare when they head to a secluded beach for the day, only to discover it is causing them to age rapidly, reducing their entire lives into a single day.

Universal’s The Croods: A New Age dropped to No. 8, while LeBron James teaming up with the Tune Squad to save his son in Warner Bros. Pictures’ nostalgic sequel Space Jam: A New Legacy, finished No. 9 on just digital download sales.

Finally, Bond catalog title Skyfall dropped three spots to finish at No. 10.

The Official Film Chart Top 10 – Oct. 20, 2021

Rank Previous Week Movie Distributor
1 4 F9: THE FAST SAGA UNIVERSAL
2 1 JUNGLE CRUISE DISNEY
3 2 FREE GUY 20TH CENTURY
4 3 SPECTRE MGM
5 5 BLACK WIDOW DISNEY/MARVEL
6 11 VENOM SONY PICTURES
7 NEW OLD UNIVERSAL
8 6 THE CROODS: A NEW AGE UNIVERSAL
9 NEW SPACE JAM: A NEW LEGACY WARNER
10 7 SKYFALL MGM

© Official Charts Company 2021

Report: TV Viewing Declining in 2021

After a surge in overall media consumption, including TV viewing, during the height of the pandemic in 2020, consumers will continue record consumption — except via the TV.

In addition to digital, media consumption includes radio, television, print and packaged media.

New data from eMarketer found that the average daily time spent with media increased to a record 13 hours and 21 minutes in 2020 — up 58 minutes from 2019. That daily average is expected to decline by 9 minutes to 13 hours and 12 minutes in 2021.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

The report found that among U.S. adults, the daily average media consumption across digital devices will increase by 9 minutes a day in 2021 — even after adding more than an hour in 2020.

The surge in digital media means that the average time spent with traditional media will continue to decline. The data shows legacy media consumption will drop 5.7% this year, which eMarketer attributes to people spending less time watching traditional TV.

Indeed, the report found the average U.S. adult will spend 18 less minutes consuming traditional media this year — 16 minutes of which will come from declines in TV viewing time. U.S. adults will also spend slightly less time than last year listening to radio and consuming print media this year as well.

“Ultimately, 2020 was an anomalous year for TV,” wrote Audrey Shomer, author of the report. “The medium picked up minutes for the first time since 2012, as people spent more time watching TV news about the pandemic, U.S. elections and social unrest.

“This year, however, TV will reverse its 2020 growth and fall below 2019 levels. We expect that time spent watching TV will continue to contract: The average U.S. adult will spend another 15 minutes less with the medium in 2022, and 11 minutes less in 2023.”

Lionsgate: Home Entertainment Represented 55% of Fiscal-Year Motion Picture Revenue

While the pandemic wreaked havoc on the theatrical business, home entertainment remained strong for Lionsgate in fiscal year 2021, ended March 31. Home entertainment revenue, which is derived from the sale or rental of feature films and television production movies or series on packaged media and through digital media platforms, represented 55.6%, or $601 million of motion picture revenue in the fiscal year.

That was down about 15% from $704.8 million in home entertainment revenue in fiscal year 2020. The primary decline was in packaged media, which saw total revenue fall almost 46% to $139.5 million from $256.9 million in FY 2020. Lionsgate, which shipped 29 million combined DVD/Blu-ray Disc units in the year, attributed the revenue drop to fewer home entertainment releases from the 2021 theatrical slate due to the global pandemic and other issues.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

The decrease in packaged-media revenue was partially offset by increased digital media revenue of $13.6 million, which included titles The Secret: Dare to Dream and Force of Nature. Digital media revenue included the PVOD release of Antebellum, the initial release on a streaming platform of Run and from I Still Believe and Knives Out in 2020. Digital media revenue in fiscal 2020 included significant revenue from John Wick: Chapter 3 — Parabellum.

Top-selling digital releases in the year included Antebellum, The Secret: Dare to Dream, The Silencing and Mortal reaching number one on the iTunes movie charts and two titles, Force of Nature and The Secret, debuting at number one on the Comscore On-Demand Chart.

Home entertainment revenue from TV product in fiscal 2021 increased $72 million, or 118.4%, compared with fiscal 2020, driven by digital media revenue for the second syndication license of “Mad Men” and digital media revenue for Power: Season 6, partially offset by digital media revenue in fiscal 2020 for Power: Season 5.

Interestingly, packaged-media sales of television shows increased 67.6% to $5.7 million, from $3.4 million in 2020.

Amoeba Hollywood (Music) Reopens at New Location After Year Hiatus

Amoeba Hollywood (aka Amoeba Music), one of the last big packaged-media retailers, has re-opened after a year hiatus in a new location in West Los Angeles. The location at 6200 Hollywood Blvd. is holding initial temporary hours everyday from 11 a.m. to 8 p.m. (buy counter open 11 a.m. to 7 p.m.) with limited store capacity due to the pandemic. Face masks are mandatory.

Old Amoeba Music store

Opening day (April 1) events included a special design created by L.A. artist Ivan Minsloff. Customers get a limited-edition poster as a gift with purchase, with silkscreened T-shirts available for purchase in the store while supplies last.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

Opening day line to get into the new Amoeba store

With locations in Berkeley (site of original store in 1990), San Francisco (1997) and Hollywood (2001), Amoeba sells new and used selection of Vinyl LPs, CDs, DVD and Blu-ray Disc movies, posters, books and related memorabilia.

“We’re still carrying everything that we had carried before, so we’re more than just a record store, the music, and movies, the posters, T-shirts, games, toys, lunchboxes, you name it,” Amoeba Music co-owner Jim Henderson said in a media statement.

Netflix Generated $200 Million in 2020 DVD/Blu-ray Disc Rental Revenue

Yes, Netflix still rents DVD and Blu-ray Disc movies. The by-mail disc rental pioneer reported revenue of $200 million for the fiscal year ended Dec. 31, 2020 — down about $100 million from the end of 2019.

Netflix doesn’t include packaged-media rental revenue in its financials, categorizing disc rental as separate revenue. The company reported $400 million in rental revenue in 2018 — underscoring the ongoing end of its legacy packaged-media business.

With Family Video calling it quits, Netflix and Redbox remain the only packaged-media rental services operating nationwide.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

 

 

NRF: More Than 150 Million Consumers Plan to Shop on ‘Super Saturday’ (Dec. 19) — With 27% Eyeing Packaged-Media Gifts

With less a week before Christmas, more than 150 million U.S. consumers plan to shop on Super Saturday (Dec. 19), up slightly from 147.8 million in 2019, according to new data from the National Retail Federation.

NRF’s survey of 8,092 adult consumers was conducted by Prosper Insights & Analytics Nov. 25 through Dec. 4. The trade group defines the holiday season from Nov. 1 through Dec. 31 and has forecast that sales will increase between 3.6% and 5.2% over 2019 to a total between $755.3 billion and $766.7 billion. Over the 2020 holiday season, NRF expects that online and other non-store sales, which are included in the total, will increase between 20% and 30%. In total consumers plan to spend $997.79 on gifts, holiday items and additional “non-gift” purchases for themselves and their families this year, according to NRF’s annual survey released in October.

“Throughout this year’s extraordinary circumstances, retailers have remained dedicated to protecting their customers, employees and the communities they serve regardless of how and when consumers choose to shop,”  Matthew Shay, CEO of NRF, said in a statement.

The number of anticipated shoppers on the last Saturday before Christmas includes both in-store and online and is the second-highest reported since NRF began tracking this figure in 2016. Of those planning to shop, 42% intend to do so solely online. Last year Super Saturday occurred just a few days before Christmas, while this year it falls nearly a week before the Christmas holiday, giving shoppers a few extra days to complete purchases.

As noted in NRF’s Thanksgiving survey, more than half (52%) of holiday shoppers took advantage of early holiday sales and promotions even before the Thanksgiving holiday. Last month 186.4 million Americans shopped between Thanksgiving Day and Cyber Monday. As of early December, 85% of holiday consumers had started shopping and they had completed 52% of their purchasing for the season.

For those with at least half of their shopping left to complete, 37% were still deciding what to buy, 26% were waiting for family and friends to tell them what they wanted, and 23% were holding off for the best deals. Similarly to last year, more than half (54%) of holiday shoppers plan to purchase their last gift during the week leading up to Christmas.

A majority (52%) of holiday shoppers plan to do the remainder of their shopping online. Other top destinations include department stores (30%), discount stores (20%), clothing and accessories stores (20%) and electronics stores (17%).

Top gift purchases so far included clothing and accessories (45%), toys (29%), gift cards (28%), books and other media (27%) and electronics (23%). Just 21% of holiday shoppers plan to give a “gift of experience” this year, down from 25% in 2019 and the lowest since NRF first asked the question in 2015.

“While traditionally a popular item, it’s clear that the pandemic has impacted ‘gifts of experience’ this year,” said Phil Rist, Prosper’s EVP of strategy. “With continued uncertainty around gatherings and out-of-home activities, we saw the biggest decline in plans to gift an experience among those ages 35 to 44, but the under-25 cohort also saw a significant dip.”

Still, shopping will continue into the new year. The survey found that two-thirds (66%) of holiday shoppers will likely shop in the week immediately following Christmas. The top reasons consumers plan to shop during the last week of December are to take advantage of post-holiday sales and promotions (45%) and use gift cards (27%). Whether it’s shopping post-holiday sales immediately after Dec. 25 or in the first few weeks of the new year, nearly half of shoppers plan to shop these deals online.

NRF: Movie DVDs Among Top-Selling Thanksgiving Weekend Sales Items; Shopping Traffic Down Slightly

An estimated 186.4 million consumers took advantage of the Thanksgiving holiday weekend price discounts and shopped in-store and online this year, according to the annual survey released by the National Retail Federation and Prosper Insights & Analytics.

After toys, books, music, movie DVDs, video games (29%), gift cards/certificates (29%) and electronics (27%) ranked among top-selling items, according to a survey of 6,615 adult consumers conducted Nov. 25-30 .

While the overall number of shoppers from Thanksgiving through Cyber Monday dropped slightly from 189.6 million in an unusually robust 2019, this figure is still significantly higher than the 165.8 million shoppers in 2018.

“As expected, consumers have embraced an earlier start to the holiday shopping season, but many were also prepared to embrace a long-standing tradition of turning out online and in stores over Thanksgiving weekend to make gift purchases for family and friends,” NRF CEO Matthew Shay said in a statement.

Black Friday and Saturday saw strong growth in online activity. For the first time, the number of online Black Friday shoppers passed the 100 million mark, up 8% over last year. The number of online Saturday shoppers grew even more, up 17% compared with last year. Online-only shoppers increased by 44% for the entire weekend, for a total of 95.7 million.

With retailers enticing consumers with generous deals as early as October, more than half (52%) of holiday shoppers said they took advantage of early holiday sales and promotions this year. Of those, 38 percent said they checked off holiday purchases in the week leading up to Thanksgiving. More than half (53%) felt the promotions over the weekend were the same as they had been earlier in the season.

As expected, in-store shopping was down given both the state of the pandemic as well as the number of retailers who opted to close on Thanksgiving Day. With consumer traffic moving to online channels, the number of in-store shoppers on Thanksgiving Day dropped by 55% from last year and those on Black Friday dropped by 37%. An earlier NRF survey found that a large majority (70%) of holiday shoppers say they feel safe shopping in stores this holiday season given the precautions retailers have taken for COVID-19.

Over the five-day period, shoppers spent an average of $311.75 on holiday-related purchases such as gifts or decorations, down from last year’s total of $361.90 but comparable to 2018’s $313.29. Of that amount, nearly three-quarters ($224.48) was spent directly on gifts.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

Consumers have continued to stress the importance of holidays throughout this year. In fact, the majority of holiday shoppers (55%) said recent developments around COVID-19 cases had no impact on their holiday spending plans this year. Most (51%) also feel that given the pandemic, they are more interested in holiday decorations and seasonal items. They were also eager to support small businesses, as 77% indicated they were more interested in doing so this year.

“The growth in online activity this year was significant, particularly for Black Friday and Saturday shoppers,” said Phil Rist, EVP of strategy at Prosper Insights & Analytics. “With the start to the holiday shopping season continuing to move up even earlier, consumers will further utilize these channels.”

Shopping destinations included department stores (visited by 40% of those surveyed), grocery stores (39%), clothing stores (33%) and electronics stores (31%).

Although consumers have embraced the earlier start to the holiday shopping season, their lists are not quite complete. Holiday shoppers have about half of their shopping left to do and 91% expect they will continue to see great deals throughout the rest of the season.

NRF defines the holiday season as Nov. 1 through Dec. 31 and has forecast that sales will increase between 3.6% and 5.2% over 2019 to a total between $755.3 billion and $766.7 billion. Over the 2020 holiday season, NRF expects that online and other non-store sales, which are included in the total, will increase between 20% and 30%. In total consumers plan to spend $997.79 on gifts, holiday items and additional “non-gift” purchases for themselves and their families this year, according to NRF’s annual survey released in October.