New Cash Streams for Entertainment Conglomerates

It appears the worldwide web isn't always the enemy.

... In the first nine months of this year, consumer spending on digital purchases of theatrical new releases climbed 88% over the same period in 2013, according to DEG: The Digital Entertainment Group. That’s a growth rate more than five times faster than consumer spending on digital formats overall (including all electronic sell-through, streaming and video-on-demand).

Electronic Sell Through arguably moved into the mainstream last year, when consumer spending on digital purchases of movies and TV shows topped $1 billion for the first time. In 2014, EST spending crossed the $1 billion mark by the end of September, putting $1.5 billion within reach for the year, fueled by consumer demand. ...

Jason Spivak, exec, VP digital distribution, for Sony Pictures Home Entertainment. He says family films “Cloudy With a Chance of Meatballs 2” and “Heaven Is for Real” have been digital standouts for the studio. ...

“Three of the five top-selling new release EST titles of all time are family (films), including ‘Despicable Me 2,’ which is Universal’s largest EST title by a wide margin — selling well over five times what the first ‘Despicable Me’ sold a few years ago,” says Michael Bonner, exec VP, digital distribution, Universal Pictures Home Entertainment. ...

“The overall growth of digital this year is very exciting, and we have had some breakout successes, including ‘Frozen’ becoming the best-selling digital title of all-time” in the U.S., adds Janice Marinelli, prexy, Disney/ABC Home Entertainment and Television Distribution. ...

You will note that animated features and effects-heavy live-action movies take up an increasingly large part of digital downloads, as well as other formats.

Frozen isn't just breaking records with movie box office and internet delivery. It also frolics in the shrinking market of little silver disks:

"Frozen" Home Video Revenue

Domestic DVD Sales $148,645,885

Domestic Blu-ray Sales $143,320,697

Total Domestic Video Sales $291,966,582

Interesting thing about older technologies: They often become less robust when newer distribution pipelines come along, but they seldom vanish altogether.

After all, we still have plays on the Great White Way, even with digital downloads and home flat-screens.