New data from DEG: The Digital Entertainment Group shows consumers buying 4K Ultra High-Def (UHD) TVs at a rapid pace, and they’re picking up the 4K content to match as well.
According to DEG’s quarterly home entertainment report, consumers bought more than 1.5 million 4K TVs in the first three months of the year, bringing the number sold to date pass the 7 million mark.
And in a good sign for a struggling home entertainment business, consumers are also picking up UHD Blu-ray Disc players, which hit retail for the first time ever earlier this year. According to DEG data, consumers bought more than 80,000 copies of the 26 UHD Blu-ray Disc movies released in the quarter, double the amount of standard Blu-rays that were purchased during the debut of that format.
Overall, consumer spending on home entertainment dropped about 2% to $4.55 billion, with sell-thru of DVDs and Blu-rays down more than 13% to $1.37 billion. Physical disc rental was hardest hit, down nearly19% year over year to $697 million.
Digital dollars, however, continue to grow for content companies: total consumer digital spending hit $2.49 billion, up 13%, with subscription streaming ($1.4 billion, up 19%) accounting for the bulk of the category. Electronic sell-thru hit $505 million, up 4%.
DEG also reported that HDTV household penetration has hit 104 million, with 95% of American homes owning at least one. Blu-ray households stand at 84 million.