Germany’s DVD market remains strong, Blu-ray shows a bright outlook

At a time when the home video market appears to be doomed in many countries, specially in those where piracy and / or digital usage are spreading at a rapid pace, Germany’s home video industry continues to hold steady, reaching record levels. This trend, along with the surge in Blu-ray sales and attractiveness of 3G among German consumers, portends a bright outlook for the market in the coming months.

In 2009, DVD and Blu-ray unit sales increased 9% to 113 million, up from 104 million units in 2008 according to Dataxis Intelligence’s market data. This uptake was partly driven by a 274% rise in Blu-ray sales, which amounted to 6.2 million in 2009. However, it is interesting to note that, unlike most home video markets, Germany’s video industry did not see its DVD sales decline; In 2009, the format saw its unit sales increase from 101 million in 2008 to 107 million, a record high in the industry.

In terms of revenues, DVD sales stabilized at €1.26 billion in 2009, whereas Blu-ray revenues increased 184% to €119 million. The average price of a Blu-ray disc fell to €19.18 in 2009, down from €25.24 and €29.13 in 2008 and 2007 respectively.

Total home video sales increased 6.67% in 2009, reaching €1.38 billion, and thus recovering from the 3% decline of 2008, and surpassing the pre-crisis level of 2007.

In the first quarter of 2010, video unit sales reached 28.6 million, increasing 14% from the same period last year. Although the average video price declined 4%, total Q1 revenues rose 9% to €330 million. Even with sales soaring 400%, the digital market, which generated €11 million in the first quarter, still holds a relatively low share in Q1 video revenues.

It is estimated that during the first half of 2010, 4.5 million Blu-ray discs were sold in Germany. Compared to the same periode last year, sales increased almost 100%, confirming the attractiveness of the technology.

Outlooks for 2010 remain all the more bright that market opportunities in the 3D segment are promising, provided that 3D Blu-ray prices be attractive. According to recent figures from Bitkom, 16 million consumers, or one in six German, say that they want to buy a 3D TV set. “After the successful introduction of TV sets with integrated internet access, the so-called hybrid-TV sets, 3D is the next big thing in the television world,” BITKOM president August-Wilhelm Scheer said a few days ago. More than 26,000 3D TV sets have been sold so far. Bitkom expects sales to surpass 100,000 at the end of the year.

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Leading market research and data analysis firm Dataxis Intelligence will soon release its annual and quarterly updates of the TV, music, cinema and video markets worldwide.

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DATAXIS, is an international market research and statistical intelligence company that covers 4 play markets worldwide. Our online database: www.dataxis.com contains detailed and up to date data on subscribers, revenues and ARPUs as well as annual forecasts on major operators and technology suppliers. Our news website: www.dataxisnews.com is a great tool to keep telecom professional up to date on the latest developments of the industry. In addition, we also publish our own analyses and Press Releases, under the Dataxis Views Section, that cover different regions worldwide: Middle East, Africa, Asia Pacific, Europe, North America, and Latin America.

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