The Digital Entertainment Group, which monitors DVD sales, has a different spin: The organization blames the lack of blockbuster releases and the fact that Easter came later this year than last year -- when it fell during the first quarter -- for the shortfall.
The DEG also reports that the second quarter is off to a strong start -- DVD sales are up 20% in the first few weeks. The lack of blockbuster releases and a later holiday aren't to blame for the entire shortfall, though. Overall home entertainment sales only fell 10% for the first quarter.
Indeed, the organization notes that other formats are taking a bigger slice of home entertainment revenues. Spending for “electronic sell-through,” a.k.a. buying over iTunes or other formats, rose nearly 11% and consumer spending on video-on-demand was up 9%.
The biggest casualty in the slump was brick-and-mortar rentals, which fell 36% for the quarter. Meanwhile, subscriptions -- either by streaming or physical rentals -- rose 33% and kiosk sales were up about 31%.
The news, which demonstrates the changing media consumption habits of U.S. consumers, comes after The Nielsen Co. on Tuesday released a report showing that TV ownership in the U.S. fell for the first time since 1992.