Get ready to pop the cork on the champagne bottle, digital download fans. In yet another sign that we are surely now living in the future, a new report is claiming that legally streamed and downloaded movies and TV shows are going to top DVD/BD sales for the first time ever this year.
IHS Screen Digest says that subscription services like Amazon and Netflix, when combined with digital sale and rental services like iTunes and Vudu, will conduct about 3.4 billion individual transactions in the U.S. this year—an increase of 135 percent over 2011. Physical media such as DVD and Blu-ray, in comparison, will chalk up a predicted 2.4 billion transactions.
Dan Cryan, senior principal analyst of broadband & digital media at IHS, said the following about this massive paradigm shift:
“The year 2012 will be the final nail to the coffin on the old idea that consumers won’t accept premium content distribution over the Internet . . . In fact, the growth in online consumption is part of a broader trend that has seen the total number of movies consumed from services that are traditionally considered ‘home entertainment’ grow by 40 percent between 2007 and 2011, even as the number of movies viewed on physical formats has declined.”
At the same time, cautions Cryan, the demise of the physical disc and its ultimate replacement by downloads and streaming will be a long, slow process:
“After more than 30 years of buying and renting movies on tapes and discs, this year marks the tipping point as U.S. consumers now are making a historic switch to Internet-based consumption, setting the stage for a worldwide migration of consumption from physical to online . . . We are looking at the beginning of the end of the age of movies on physical media like DVD and Blu-ray. But the transition is likely to take time: almost nine years after the launch of the iTunes Store, CDs are still a vital part of the music business.”
Do your media consumption habits fall in line with IHS’s numbers, Insiders?
[via Paid Content]