
In the third quarter of 2013, physical media rental revenues totaled $966 million, compared with $815 million in streaming subscription revenues. Physical media rental revenue declined 18% to $793 million in the third quarter of this year, while subscription streaming revenue totaled $1.03 billion, up 26% year-over-year.
Combined with a 9.5% decline in video-on-demand rentals, rental revenues overall fell 15% to $1.22 billion. Streaming and disc subscription services posted revenues of $1.23 billion. As the situation stands, digital revenues should pass physical sales sometime in 2016, according to nScreen Media.
Sales of physical media totaled $1.33 billion in the third quarter of 2014, down 8% year-over-year. Year to date sales, of physical media are also down 8% to about $4.6 billion. Including digital downloads (called electronic sell-through, or EST, in the industry), total sales fell 2.5% to $1.68 billion. The data was reported on Wednesday by the Digital Entertainment Group.
The direction that video entertainment is headed favors companies like Netflix Inc. (NASDAQ: NFLX) that offer both physical and digital streaming. Amazon.com Inc.’s (NASDAQ: AMZN) Prime Instant Video and Hulu Plus are other examples of where consumers are taking the market.
Outerwall Inc. (NASDAQ: OUTR) and its Redbox kiosks are not in a solid position going forward, although the company did post good earnings last week. The company’s streaming joint venture with Verizon Communications Inc. (NYSE: VZ) was cancelled last month.
Another long-term loser appears to be the video-on-demand services offered by cable operators like Comcast Corp. (NASDAQ: CMCSA) on a pay-per-view basis.
ALSO READ: Video Viewing on Mobile Devices Skyrockets
It’s Your Money, Your Future—Own It (sponsor)
Retirement can be daunting, but it doesn’t need to be.
Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!
Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.