DEG Releases Year-End 2018 Home Entertainment Report

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DEG: The Digital Entertainment Group announced it has released its year-end 2018 home entertainment report for the United States.

For more information visit: www.degonline.org

Unedited press release follows:

January 8, 2019 — DEG: The Digital Entertainment Group today released its Year-End 2018 Home Entertainment Report compiled by DEG members, tracking sources and retail input.*

Late Surge Boosts Home Entertainment Spending 11.5% To $23.3 Billion in 2018

Strong 13% Rise in Fourth Quarter Lifted by Electronic Film Sales and Rentals

Electronic Sell Thru Jumped Nearly 14% in 2018, Led by a 23% Rise in Theatrical Product

Home entertainment spending jumped 11.5% in 2018 to a record $23.3 billion as consumers continued adding their favorite films and TV shows to their libraries.

Fourth quarter results were especially strong, rising 13% to $6.3 billion. In both fourth quarter and the full year, electronic purchases were exceptionally strong, led by electronic sell-thru spending for films that more than offset a modest decline in EST purchases of TV product.

Among the highlights for the fourth quarter and full-year in 2018:

• Overall electronic sell-through (EST) spending rose 20% in the fourth quarter and 14% for the year. Theatrical EST sales were up nearly 36% in the fourth quarter and 23% for the year,offsetting a decline of less than 5% for TV product for both the quarter and year.

• Video-on-demand (VOD) was strongest in the fourth quarter, rising nearly 22%. VOD was up 6% for the year.

• Sales of 4K UHD content continued to mirror the burgeoning sales of new equipment, rising 70%for the year and 46% in the fourth quarter. The number of 4K Ultra HD Blu-ray Disc titles available in the market grew to 445 titles; 682 4K titles are available digitally.

• Among the best-selling film titles released on 4K for the home in 2018 were: Justice League (Warner Bros.), Ready Player One (Warner Bros.), Mission: Impossible – Fallout (Paramount), Jurassic World: Fallen Kingdom (Universal), Deadpool 2 (Twentieth Century Fox) and Avengers: Infinity War (Walt Disney Studios).

• 4K UHD TV penetration rose 61% over the year-earlier period, to 48 million households. Also during the year, penetration of 4K capable player devices (game consoles and set-top boxes) rose 66%, to 13 million homes.

• Subscription streaming rose 30% in both the fourth quarter and year.

• Box-office performance for the films released in the year rose nearly 15%.

* Please note, these numbers are preliminary. Please contact DEG for an updated version in early February. Hardware sales are estimates until manufacturers report industry sales.

If you would like to discuss DEG’s Year End 2018 Home Entertainment Report, please contact DEG at 424-248-3809.

Disclaimer: This report contains information compiled from sources that the DEG believes have accurately reported such information, but which the DEG has not independently checked or verified. As such, the DEG does not warrant its accuracy or reliability. The report is not intended to provide investment or securities advice.

* SVOD data sourced from IHS Markit (technology.ihs.com). Disclaimer: The data is not an endorsement and reliance is at a third party’s own risk.