Discs Still Top Home Video in NZ
June 8, 2017 
3 Comments
PwC’s Global Entertainment and Media Outlook 2017 – 2021 report says streaming revenue will remain less than half that of DVDs and Blu-rays in NZ over the next five years.
“In NZ the Internet video segment is taking off as the major international players launch and bring premium original content that has been heavily pirated in the past,” the report states.
“Despite growth of 15.6% CAGR (compound annual growth rate) producing revenues of $85 million in 2021, this will remain less than half the size of the physical home video market for DVDs and Blu-rays.
“The physical market is in long-term decline and the gap between the two will continue to narrow as OTT [over the top] platforms establish themselves.”
“The trends and consumer behaviour we see unfolding in NZ are largely in line with global trends, with a slight lag,” says Greg Doone, PwC Director, Digital Strategy.
“Internet video streaming services appeal to many, but specifically to a generation who have never had to rent a video or buy a CD.
“For media companies, this generational change isn’t about just keeping up with technology but anticipating consumer needs and creating an excellent user experience.”
According to the report, global internet video revenues will overtake physical home video for the first time in 2017.
Global internet video revenues are projected to grow at a CAGR of 11.6% to reach $52.7 billion [US$36.7bn] in 2021, while the terminally declining market for DVDs and Blu rays will have fallen to $19.9 billion [US$13.9bn]. Demand has shifted towards the more immediate and convenient video-on-demand (VOD) market, with content accessible via a wide range of connected devices allowing consumers to view when and where they desire. While there remains a strong market for ownership of content through transactional VOD (TVOD) services, growth will be mainly focused on subscription VOD (SVOD) platforms, with subscribers attracted to full seasons of original content and back-catalogues they can binge view.
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June 8, 2017 at 10:50 am
I was glad to see when I moved in to Morrinsville that there was still a video library here. The ones close to me in Auckland had all closed over the past few years. Most likely the main reason it’s still going here is that there is no fibre Internet here yet. Still prefer discs to streaming as the audio is way better.
The physical disc market may be declining but it’s a golden time for bargain hunters. Wait a few months and most titles will be discounted 🙂
I wonder if the “PwC’s Global Entertainment and Media Outlook 2017” report has assessed Sky TV NZ? Would be interesting to hear if there is an official decline, as it appears subscriber numbers seem to be on the decline here…wonder if there was any official assessment of this segment?