Fast growing Internet services like Netflix, Inc.(NASDAQ:NFLX), DVD rentals and online movie purchases from Redbox kiosks lifted US home-video spending in the third quarter, countering the unrelenting drop in DVD sales.
The industry-backed Digital Entertainment Group said in an e-mailed statement that total sales increased 0.2% to $3.94 billion. Revenue coming from subscription streaming has more than doubled while online purchases of TV shows and movies increased almost 38%.
Hollywood studios are relying on digital pays and services like Hulu Plus to boost revenue and replace dwindling DVD spending as more customers watch videos online from TVs and smaller devices. Sales increased 1% year to date to $12.3 billion, according to the association.
President of Warner home Video, Ron Sanders said in an interview that the growth businesses are all growing continuously every month. They are apparently beginning to counterbalance the downturn that was previously seen.
The major studios and electronic companies are supporting Ultra Violet, a service to allow customers a TV show and a film and watch from an array of Web-linked devices. Studios are working to lure more retailers to take part in the service, as told by the president of Sony Pictures Home Entertainment, David Bishop.
Bishop mentioned in an interview that Sony Pictures is on the verge of increasing the retail base. It requires more in the market and it will aid the ownership concept among consumers.
Warner Bros. announced recently a contract to provide films to Redbox Instant and Verizon Communications. It was last month when pay television channel Epix got a deal to sell and rent movies through Amazon Prime service.
Sales from subscription streaming soared to $579.2 million in the third quarter, as per DEG. Sales of electronic copies of TV shows and movies increased to $187.1 million. Sales of physical disks dropped 4% to $1.67 billion for the quarter.
Shares of Netflix, Inc.(NASDAQ:NFLX) has been showing solid buying recovery and rose 11.35% to $68.42. Earlier this week, the stock fell 14% in a single day after reporting lackluster outlook. Shares of NFLX got boosted on rumors that Microsoft Corporation(NASDAQ:MSFT) Still Interested in Acquiring Netflix
Coinstar, Inc.(NASDAQ:CSTR) shares soared 4% to $44.97.