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Home-Video Spending Rose 2.5% in First Quarter, DEG Says

Home-video spending by U.S. consumers rose 2.5 percent in the first quarter from a year earlier, to $4.5 billion, driven by increased demand for Blu-ray discs, according to the Digital Entertainment Group.

Blu-ray disc sales jumped 23 percent in the first three months of 2012, the industry-backed DEG said in a statement. Spending on packaged videos, including DVDs and Blu-ray, declined 0.6 percent to $2.1 billion, indicating a drop in DVD sales.

Blu-ray accounted for a quarter of total spending on movie discs, compared with less than 15 percent two years ago, the Los Angeles-based group said. It didn’t break out specific dollar amounts within the packaged-goods category.

Kiosk rentals, such as those provided by Coinstar Inc. (CSTR)’s Redbox, jumped 30 percent in the quarter to $523 million.

To contact the reporter on this story: Ye Xie in New York at yxie6@bloomberg.net

To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net

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