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Movie Sales and Rentals - US - August 2014

Published By :

Mintel

Published Date : Aug 2014

Category :

Lifestyle

No. of Pages : 99 Pages

Buying and renting movies online takes less time than buying or renting in-person. Being able to view content on any device at any time also brings greater convenience to the consumer. In spite of these advantages, the transition to digital movies has impacted sales negatively. Consumers are increasingly seeking value, and vendors unmindful to this concern will eventually lose business to lower-cost services and ad-supported viewership.
Table of Content

Scope and Themes

What you need to know
Definition
Data sources
Sales data
Consumer data
Abbreviations and terms
Abbreviations
Terms

Executive Summary

The market
Slow fade under way
Figure 1: Fan chart and forecast of US movie sales and rentals, 2009-19
Sales shift from buying to subscribing
Figure 2: US movie sales and rentals, purchases vs. rentals vs. subscriptions, 2013
Subscription model of choice for digital
Figure 3: Digital movie stores and subscription services used in past month, June 2014
The consumer
Saving money via subscription
Figure 4: Reasons for subscribing, June 2014
Younger adults get digital and physical
Figure 5: Number of digital movie rentals and sales in past month, by age, June 2014
Figure 6: Number of DVDs/Blu-rays bought or rented in past three months, by age, August 2013-March 2014
DVD gift market still vibrant
Figure 7: Purchase of DVDs as a gift, by marital/relationship status, August 2013-March 2014
What we think

Issues and Insights

When will discs die?
The issues
The implications
Is video a zero-sum game?
The issues
The implications

Trend Applications

Trend: Let\'s Make a Deal
Trend: Secret, Secret
Mintel futures: Access Anything Anywhere

Market Size and Forecast

Key points
Total spend in slow fade
Figure 8: Total US sales of movie sales and rentals, at current prices, 2009-19
Figure 9: Total US sales of movie sales and rentals, at inflation-adjusted prices, 2009-19
Fan chart forecast
Figure 10: Fan chart and forecast of US movie sales and rentals, 2009-19

Market Segmentation

Key points
Purchasing in decline
Physical still majority of sales
Figure 11: US home video sales, purchases vs. rentals vs. subscriptions, 2011-13

Market Drivers

Key points
Content
Original
Discovery
Box-office success
Figure 12: Attitudes to finding content, by gender and age, June 2014
HD
Figure 13: Selection of HD at digital stores, by gender and age, June 2014
Hardware
Television sets and disc players
Figure 14: Penetration of home theater equipment, January-June 2014
PCs, tablets, and phones
Figure 15: Penetration of mobile devices and media players, January-June 2014
Digital media players and gaming consoles
Figure 16: Google chromecast ad, June 2013
Gaming consoles
Figure 17: Penetration of home gaming consoles and streaming media devices, January-June 2014

Competitive Context

Key points
Ad-based content
Figure 18: Attitudes to ad-based movie viewing, by gender and age, June 2014
Pay TV
Figure 19: Penetration of pay TV subscriptions, 2011-2014

Leading Companies

Key point
Wider range of viewing options favor Amazon, Redbox
Figure 20: Digital movie stores and subscription services used in past month, June 2014

Innovations and Innovators

M-GO offers rewards
Figure 21: M-GO rewards landing page, July 2014
Netflix delivers 4K, VUDU offers HDX
Figure 22: VUDU HDX promotion, July 2014
VUDU “Disc to Digital” sells0020digital licenses to DVD owners
Figure 23: VUDU Disc to Digital program, July 2014
iTunes Extras
Figure 24: iTunes Extras, July 2014

Marketing Strategies

Netflix
Figure 25: Netflix television ad “Airport”, July 2014
Amazon Prime and Amazon Instant Video
Figure 26: Amazon HBO content, July 2014
Figure 27: Amazon free trial screen shot, July 2014
iTunes
Figure 28: iTunes Spider-Man Trilogy bundle, July 2014
Redbox/Redbox Instant by Verizon
Figure 29: Redbox kiosk reservation page, July 2014
VUDU
Figure 30: VUDU deals of the month, July 2014
M-GO banks on Netflix library flaws
Figure 31: M-GO movies not carried by Netflix, July 2014

DVD and Blu-ray

Key points
Blu-ray retains some shine
Figure 32: Number of DVDs/Blu-rays bought or rented in past three months, July 2009-March 2014
Figure 33: Time spent watching DVDs in the past week, July 2009-March 2014
Two thirds of adults continue to buy and rent discs
Figure 34: Purchase and rental of DVDs and Blu-ray in past year, by age, August 2013-March 2014
Figure 35: Number of DVDs/Blu-rays bought in past three months, by age, August 2013-March 2014
Figure 36: Time spent watching DVDs in the past week, by age, August 2013-March 2014
Figure 37: Family video used DVD sale, July 2014
DVD usage consistent across income groups
Figure 38: Purchase and rental of DVDs and Blu-ray in past year, by household income, August 2013-March 2014
Figure 39: Number of DVDs/Blu-rays bought in past three months, by household income, August 2013-March 2014
Long-term trends favor digital
Figure 40: Attitudes to streaming content, by age, August 2013-March 2014
Figure 41: Attitudes to streaming content, by household income, August 2013-March 2014

Digital Sales and Rentals

Key points
Focusing on 25-34s
Figure 42: Digital stores used for purchasing movies, by age, June 2014
Figure 43: Digital stores used for renting movies, by age, June 2014
Figure 44: Number of digital movie rentals and purchases in past month, by age, June 2014
Time to market low-cost digital rentals
Figure 45: Digital stores used for purchasing movies, by household income, June 2014
Figure 46: Digital stores used for renting movies, by household income, June 2014
Figure 47: Number of digital movie rentals and purchases in past month, by household income, June 2014
Digital store selection
Figure 48: Reasons for selecting digital store in most recent digital movie transaction, June 2014
Figure 49: Reasons for selecting digital store in most recent digital movie transaction, by age, June 2014
sVOD subscribers avid digital buyers/renters
Figure 50: Digital stores used for purchasing movies, among subscribers to movie services, June 2014
Figure 51: Digital stores used for renting movies, among subscribers to movie services, June 2014
Figure 52: Number of digital movie purchases and rentals viewed in past month, among subscribers to movie services, June 2014

Subscription Services

Key points
Filling in gaps in Netflix’s library
Figure 53: Subscription service usage, June 2014
18-34s average multiple subscriptions
Figure 54: Subscription service usage, by age, June 2014
Lower-income groups not buying in
Figure 55: Subscription service usage, by household income, June 2014
Keeping the whole family happy via multiple subscriptions
Figure 56: Subscription service usage by presence of children in household, June 2014
Too cheap to cancel
Figure 57: Reasons for subscribing, June 2014
Catalog titles likely to sway older viewers
Figure 58: Reasons for subscribing, by age, June 2014
Multiple subscriptions common
Figure 59: Subscription services, by subscription services, June 2014

Children and the Gift Market

Key points
Children drive volume in physical market
Figure 60: Purchase and rental of DVDs and Blu-ray in past year, by marital/relationship status, August 2013-March 2014
Figure 61: Number of DVDs/Blu-rays bought in past three months, by marital status and presence of children, August 2013-March 2014
Children critical to digital stores
Figure 62: Digital stores used for purchasing movies, by presence of children in household, June 2014
Figure 63: Digital stores used for renting movies, by presence of children in household, June 2014
The gift market
Figure 64: Purchase of DVDs as a gift, by marital/relationship status, August 2013-March 2014
Figure 65: Purchase of DVDs as a gift, by gender, August 2013-March 2014
Figure 66: Purchase of DVDs as a gift, by age, August 2013-March 2014
Figure 67: Purchase of DVDs as a gift, by household income, August 2013-March 2014

Impact of Race/Hispanic Origin

Key points
Asians prefer internet-delivery
Figure 68: Attitudes to streaming content, by race/Hispanic origin, August 2013-March 2014
Figure 69: Time spent watching DVDs in the past week, by race/Hispanic origin, August 2013-March 2014
Hispanics top movie consumers
Figure 70: Number of digital movie rentals viewed in past month, by race/Hispanic origin, June 2014
Figure 71: Number of DVDs/Blu-rays bought or rented in past three months, by race/Hispanic origin, August 2013-March 2014
Hispanics lead across all stores
Figure 72: Digital stores used for renting movies, by race and Hispanic origin, June 2014

Custom Consumer – Men 18-34

Key point
Young men top of chart for every digital store
Figure 73: Digital stores used for purchasing movies, by gender and age, June 2014
Figure 74: Digital stores used for renting movies, by gender and age, June 2014
Young men lead in frequency of purchases and rentals
Figure 75: Number of digital movie rentals and purchases in past month, by gender and age, June 2014

Appendix – Other Useful Consumer Tables

Attitudes to streaming content
Figure 76: Attitudes to streaming content, by marital/relationship status, August 2013-March 2014
Buying and renting physical discs
Figure 77: Purchase and rental of DVDs and Blu-ray in past year, by race/Hispanic origin, August 2013-March 2014
Gifting
Figure 78: Purchase of DVDs as a gift, by race/Hispanic origin, August 2013-March 2014
Time spent watching DVDs
Figure 79: Time spent watching DVDs in the past week, by household income, August 2013-March 2014
Figure 80: Time spent watching DVDs in the past week, by marital/relationship status, August 2013-March 2014
Reasons for subscribing
Figure 81: Reasons for subscribing, by gender, June 2014
Figure 82: Reasons for subscribing, by household income, June 2014
Figure 83: Reasons for subscribing, by presence of children in household, June 2014
Figure 84: Reasons for subscribing, by race and Hispanic origin, June 2014
Subscription services
Figure 85: Subscription services, by race and Hispanic origin, June 2014
Figure 86: Subscription services, by gender and age, June 2014
Digital stores
Figure 87: Digital stores used for purchasing movies, by race and Hispanic origin, June 2014
Figure 88: Digital stores used for renting movies, by race/Hispanic origin, June 2014
Figure 89: Digital stores used for purchasing movies, by gender and age, June 2014
Figure 90: Digital stores used for renting movies, by gender and age, June 2014
Digital rentals in past month
Figure 91: Number of digital movie rentals viewed in past month, by gender and age, June 2014
Reasons for selecting digital stores
Figure 92: Reasons for selecting digital store in most recent digital movie transaction, by gender, June 2014
Attitudes to finding content
Figure 93: Attitudes to finding content, by gender and age, June 2014

Appendix – Trade Associations

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