retail news in context, analysis with attitude

by Kevin Coupe

Advertising Age reports on a new study by PricewaterhouseCoopers saying that "spending on movie downloads and video streaming subscriptions in the U.S. will surpass purchases and rentals of DVDs for the first time this year."

According to the story, "Electronic home-video revenue will climb 13% to $9.5 billion this year, while physical sales drop to $7.8 billion, the consulting firm said. By 2017, the electronic revenue will reach $12 billion, at which point it will exceed the U.S. film box office."

Here's another fascinating projection about content consumption - that "music streaming ... will overtake the still relatively new business of digital purchases of songs by 2018."

In addition, "digital revenue will account for 45% of all spending on books by that date."

Wow.

Think about that for a second. Consumer behavior when it comes to content consumption is changing in fundamental ways - people are watching more movies at home than in the theaters (placing enormous challenges in front of theater chains, by the way), and shortly will be streaming more than watching DVDs...which is a relatively new business. Plus, they're streaming more than downloading, and soon, inevitably, will be buying more digital books than physical copies.

Anyone who thinks that their businesses may be immune from these kinds of shifts is kidding themselves.

This should be an Eye-Opener. To everyone.
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