BVA YB15Full Cover 19/05/2015 14:10 Page 1 B VA YEARBOOK 2015 TH E BVA YE A R BOOK 2015 PRICE: £599 iPad and PDF copies available f o r £ 9 9 9 f r o m w w w. b v a . o r g . u k British Video Association BVA YB15 Inside Cover 19/05/2015 14:07 Page 1 BVA YB 15 Inner AW 19/05/2015 14:11 Page 1 Contents FEATURES Chairman’s introduction 3 CEO’s foreword 4 Market overview 6 OWNERSHIP Video ownership 10 Consumer behaviour 11 Digital retail 13 DVDs 14 Blu-ray 15 Seasonality 16 Title of the year 18 New release 20 Catalogue 21 Film 22 Children’s 24 TV 26 Music 27 Sport and fitness 29 Special interest 30 RENTAL Rental overview 32 Rental consumer behaviour 33 Rental market share 34 HARDWARE Devices and screens 36 Directory 38 1 BVA YB 15 Inner AW 19/05/2015 14:11 Page 2 © 2015 Warner Bros. Entertainment Inc. All Rights Reserved. BVA YB 15 Inner AW 19/05/2015 14:11 Page 3 F E AT U R E Chairman’s introduction by Robert Price Chairman, British Video Association When I stepped into the exciting leadership role of BVA Chairman last year it was evident that the home entertainment arena is in one of the greatest periods of evolution it has ever seen. As the mix between ownership and rental shifts, the gap between physical and digital narrows and customer demand for greater flexibility and versatility reach an all-time high, our category isn’t just embracing change, we’re pioneering it. We are an industry worth over £2bn. That’s £6m through the checkouts, in store and online, every day. Last year, more than 143 million DVDs and Blu-rays were sold and more than 24 million people bought one of our products to own. These are incredible statistics. As a sector we reinvent and refresh ourselves every single week with titles that thrill and engage all ages. We operate in such a vibrant and dynamic marketplace that securing a landscape where all formats can successfully and strongly co-exist will be one of the BVA’s key goals this year. As a trade body, we’re adapting and changing to ensure we collectively lead the industry and maintain our resilience in the long term. It’s more important than ever that we collaborate amongst ourselves and work closely with retail partners to ensure we can empower each other and create prominence both in and out of the entertainment aisles. Ultimately, the vitality of our business remains exceptionally strong because people love video. We must never lose sight of the emotional connection people have with our products, those connections last a lifetime because they are so deep – no wonder people go out of their way to seek out and own our content. From the frazzled mum I trolley-bumped in Tesco buying Frozen for her daughter to the film student I shared an X-Men chat over the shelves with in HMV, it is a privilege and an inspiration to be a part of such an exciting sector. 3 BVA YB 15 Inner AW 19/05/2015 14:11 Page 4 CEO’s FOREwORd Opportunity is all around by Liz Bales CEO, British Video Association Since its first publication in 1994 the BVA Yearbook has provided the definitive analysis of the video category. In the last 12 months that category has evolved significantly, creating some tough new challenges for our members and partners to contend with. However, the changing landscape has also brought with it new possibilities. What were just the tentative shoots of new services 12 months ago are today flourishing within a much more vibrant and varied video ecosystem than we might ever have imagined. Last year’s content platforms have become this year’s content producers. Opportunity is all around. From distribution to retail, the catalyst behind all of this change remains consistent: our industry’s collective commitment to putting our customers first. As technological advances offer new viewing opportunities for consumers, their habits change – and we continue to diversify our offer 4 accordingly. The result is unparalleled choice and value for video consumers today. This latest Yearbook reveals the extent to which consumers are valuing the variety on offer. One week they will buy a TV box-set; the next rent a movie on demand, while also subscribing to a streaming service. They are flexing our offer to meet their changing needs. The concept of ownership remains central to purchase decisions, with buy-to-own accounting for two thirds of consumer spending – yet there has also been a proliferation in video-on-demand and digital formats now represent a 37% market share. Similarly, we see variety in the type of content our customers are choosing. The very latest blockbusters will always be popular – but more than half of disc sales pertain to profitable Catalogue product, often bought on impulse, revealing the value and importance of engaging point of sale. This year we have refreshed the format of the Yearbook to provide the clearest picture possible of this diverse, and changing, category. It will be BVA YB 15 Inner AW 19/05/2015 14:11 Page 5 CEO’s FOREwORd supplemented across the year with category highlights and forecasts providing our members with multiple data points and more regular market analysis. Within this evolving video landscape, the BVA stands steadfast by the same high standards of service we always have; constantly challenging ourselves to adapt and improve that service to help our members keep pace with new opportunities. Across 2015 our focus will be: · · Industry intelligence: We are delivering valuable industry intelligence that benefits members’ businesses and underpins our sector’s reputation, constantly questioning what the ‘best’ data looks like and helping our suppliers to enhance their insights accordingly. Communications and marketing: We will promote and champion our category, both to retailers and their customers, adapting our approaches as the category diversifies to ensure our activities feel fresh and remain relevant. · Education: We will help consumers understand how to maximise the value of our content; help UK and EU policymakers and stakeholders to understand the drivers and economics of our category and ensure our members stay informed of ever-evolving issues. Underpinning all of this the BVA remains committed to sharing knowledge across the category. It’s a commitment that will become ever more important as our membership and partner network continues to grow and diversify in line with the shifting landscape. By bringing together representatives from traditional video formats with the voices of new, digital business models and combining proven experience with new thinking, the BVA will continue to facilitate productive and costeffective collaboration across every corner of the video category. 5 BVA YB 15 Inner AW 19/05/2015 14:11 Page 6 MARKET OVERVIEw Video worth over £6 million per day to UK retailers The UK’s video sector is worth in excess of £2.2 billion to the UK economy which equates to more than £6 million per day, every day, going through retail checkouts, both in-store and online. That’s more than double the consumer spend on music or going to the cinema and even take-home pizza! To have and to hold To have: Consumers like to own a copy rather than rent. Video purchases account for the lion’s share of the market with consumers spending twice as much on buying videos to own than on rental charges and subscription fees combined. To hold: Consumers like to hold a physical copy of their video with two thirds of spend on DVDs and Blu-ray Discs, and one third on digital forms of content. More than half of all consumer spend is on buying discs to own and to keep. On disc To own To rent Total 58% 5% 63% † On digital 7% 30% 37% Total 65% 35% 100% “Every month we’ll buy something new.” 24m 24m people bought a video to own in 2014 – the same as in 2013. “They (DVDs) are good value because we share them around, my son will borrow some or we’ll borrow from him.” †Includes both Video-on-Demand and subscription services such as Netflix and Amazon Prime. “My husband works away during the week so when I go to bed I watch films I love, like Pride and Prejudice, over and over (on DVD).” 6 £51 .03 Average spend per shopper on video discs is £51.03 per year. £19 .84 Average spend per shopper on Video-on-demand rentals is £19.84 per year. BVA YB 15 Inner AW 19/05/2015 14:11 Page 7 MARKET OVERVIEw The best of both worlds Disc with a digital copy Sales of Blu-ray Discs that included a digital UltraViolet (UV) copy rose 11% in 2014 driven by an increase in the total number of titles released with a UV copy and studios mainly including the UV copy with Blu-ray Discs and being more selective as to which DVDs included UV. By the end of 2014, 1.5m shoppers had opened a UV account in UK & RoI, up 35%, enabling them to watch their UV films and TV shows anytime, anyplace, anywhere across their favourite devices. Sainsbury’s, blinkbox movies and Cinema Now joined Flixster, Kaleidescape and Sony Pictures in providing UV services and with more than 180 million connected devices in the UK the popularity of UV is forecast to grow significantly through 2015 and 2016. “I get these in a bundle – it’s 3D, Blu-ray, DVD and digital copy.” The Lego Movie was the top selling UVenabled disc in 2014. It was made available on DVD and Blu-ray Disc. “If it (the bundle) is the same price as the digital copy, then I’ll get the bundle…it’s just good value…” Some of the biggest names in entertainment have come together to offer movies and TV shows with UltraViolet. 7 BVA YB 15 Inner AW 19/05/2015 14:11 Page 8 MARKET OVERVIEw Digital with a disc copy Sky TV’s Buy and Keep service was a welcome innovation during 2014 with the service offering films straight to the HD+ box and the DVD sent direct to the customer’s home. “The ability to download and then receive DVDs in the post is a great idea.” The gift that keeps on giving Video is the gift that just keeps on giving. Year after year a consistent one in five Blu-ray Discs are bought as a present and for DVDs this increases to one in three, showing the continued value that givers and receivers place on videos as a gift. The wide range of choice is a key factor with over 78,000 different titles selling at least one copy during 2014 whilst value for money is clearly another motivator. “I was doing another task on my iPad when I realised I'd much rather watch an episode or two of Come Fly With Me, another comedy. These were digitally bought and downloaded a couple of years ago.” Planned purchase Whilst 55% of Blu-ray sales are planned purchases, these sales account for 63% of Bluray spend, showing the premium payable for must-own content. Similarly, 44% of DVD sales are planned, accounting for 54% of DVD spend. Half of all sales of new titles are made within the first week after release, highlighting the importance of both awareness and the availability of stock to the success of a title and its profitability. In 2014, nine video distributors pooled their resources behind a campaign called ‘Bring Your Christmas Stocking To Life With Blu-rays and DVDs’. The campaign, developed by Universal Pictures, showcased 65 different video titles on TV, press, outdoor and online over four weeks, with ten leading retailers participating with shelf space and point-of-purchase material. All consumer comments are from a survey carried out by The Nursery Research & Planning. 8 “I saw a cardboard cut-out of Mrs Brown in Asda to promote the Mrs Brown DVD.” BVA YB 15 Inner AW 19/05/2015 14:11 Page 9 MARKET OVERVIEw Total video market £2.18bn To own To rent 66% 34% £1,432m £751m 12% 14% Digital £168m Disc Rental £106m 35% tVoD £264m 51% sVoD £381m 88% DVD and Blu-ray Discs £1,264m Blu-ray Discs £231m Video market £ms and % digital £3026 £2803 £2776 £2592 £2646 £2676 £2451 £2447 £2345 £2284 £2193 £2212 £2183 £1959 37% 28% 20% 1% 2% 3% 3% 0% 2001 2002 2003 2004 2005 % digital 3% 4% 2006 2007 6% 2008 10% 12% 8% 2009 2010 2011 2012 2013 2014 Value £ million Bar graph is total video market including all retail and rental, physical and digital. Line graph is % share that is digital. 9 BVA YB 15 Inner AW 19/05/2015 14:11 Page 10 OWNERSHIP Video ownership – disc and digital Retail video consumer sales £2,478 £2,256 £2,317 £2,244 £2,252 £2,229 £2,012 £1,829 £1,909 £1,896 £1,642 £1,568 £1,417 £1,432 251 £1,100 234 222 £896 251 236 221 208 £878 £784 263 229 194 £721 181 167 169 £637 £733 135 114 66 1994 73 79 1995 1996 Volume (million): 100 96 1998 1999 87 1997 VHS DVD Value (£million) 2000 2001 2002 Blu-ray 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Digital retail Source: Official Charts Company/IHS. NB. Methodology for value changed in 2007. Some figures may have been revised since previous publication. * Due to additional information becoming available, 2013 figures have been amended since publication of the 2014 Yearbook. Year-on-year comparisons use the latest data. Factfile Disc Ownership Market: 143m Sold: and Blu-ray Discs DVDs Average sales price: £8.84 Total consumer spend: £1.26bn Demand for video ownership was buoyant in 2014 with total consumer spend at £2.18 billion, compared to £2.21 billion in 2013*, a dip of just 1%. Buying videos to own and keep is overwhelmingly the preferred choice for consumers representing two thirds of all video spend. Total retail sales of physical discs were £1.26bn in 2014, slipping 9% year on year in still relatively tough economic conditions. DVDs remain the firm favourite accounting for 72% of the buy-toown segment and generating £1.033 billion in consumer spending. Blu-ray, at £231m, accounted for a further 16% of ownership. Digital Ownership Market: 24m digital copies Physical discs share remains more than robust at 88% of all video ownership. Average sales price: £6.96 The balance, 12%, is digital ownership where consumers spent c£168m, up c29%. Sold: Total consumer spend: £168m 10 BVA YB 15 Inner AW 19/05/2015 14:11 Page 11 OWNERSHIP Consumer behaviour Proportion of population who buy to own 49.1% Discs and digital downloads 49.6% DVD and Blu-ray Discs combined 7.0 Discs and digital downloads 7.2 DVD and Blu-ray Discs combined 41.9% 45.0% 8.6% 9.4% Blu-ray Discs Digital downloads Average number of purchases in year 6.1 6.5 3.5 3.4 Blu-ray Discs Digital downloads 5.7% 3.0% 40.5% Visit cinema 3.4 5.3 8.6 Visit cinema 10 36.4% 2014 2013 Average spend per buyer DVD and Blu-ray Discs combined 49% of GB population bought a video to own in 2014, either on disc or as a digital download, equivalent to some 24.4 million people, some 4 million more than visited the cinema. Most popular format to own a video is on DVD with 40% of population buying at least one in 2014. £51.03 £51.73 Blu-ray Discs £41.37 £39.55 Digital downloads £27.05 £41.26 £60.76 £68.82 Cinema Do consumers plan their purchase or buy on impulse? % of total GB population Buy DVD 28% 28% Buy Blu-ray 5% 6% DVD % of DVD sales volume 56% 46% % of spend on DVDs 44% 54% Blu-ray % of Blu-ray Disc sales volume 45% 37% % of spend on Blu-ray Discs Impulse Planned 55% 63% Source: Kantar Worldpanel. Some figures may have been revised since previous publication. 11 BVA YB 15 Inner AW 19/05/2015 14:11 Page 12 OWNERSHIP Consumer behaviour Age Gender Social class 63% of DVD buyers buy 1-4 DVDs per year and represent 24% of market value 57% 53% 60% DVD 25-54 Male C1, C2 13% of DVD buyers buy 12+ DVDs per year and represent 49% of market value 64% of Blu-ray buyers buy 1-4 Blu-ray Discs per year and represent 25% of market value 53% 74% 60% Blu-ray 25-44 Male ABC1 16% of Blu-ray buyers buy 12+ Blu-ray Discs per year and represent 53% of market value 71% of downloaders buy 1-4 digital copies per year and represent 30% of market value 60% 72% 72% Digital Download 25-44 Male ABC1 8% of downloaders buy 7+ Blu-ray Discs per year and represent 45% of market value Source: Kantar Worldpanel Retailer market share 2014 Distributor market share 2014 Amazon Warner 21% HMV 20% 18% Tesco ASDA 13% 13.7% 20th Century Fox 12.9% Universal Pictures 12.4% Elevation Sales 10% Sainsbury’s 14.1% Walt Disney 7.3% Entertainment One Morrisons 7.1% 4% Sony Pictures Play 6.6% 3% BBC Worldwide Other 12% 5.3% Paramount Channel 4 4.9% 1.8% Other 13.1% Source: Official Charts Company 2014 DVD and Blu-ray top 10 Volume 6 discs per annum The typical DVD buyer is male, 25-54, C1, C2. Pos Title 1 Frozen The Hobbit – The Desolation Of 2 Smaug The Hunger Games – 3 Catching Fire* 4 The Lego Movie Company Walt Disney Warner Lionsgate/Elevation Sales Warner 5 Mrs Brown’s Boys – D’Movie Universal Pictures 6 7 8 9 10 Guardians Of The Galaxy The Inbetweeners Movie - 2* Gravity The Wolf Of Wall Street Thor – The Dark World* Walt Disney Channel 4 Warner Universal Pictures Walt Disney *Includes box-sets. Source: Official Charts Company 12 BVA YB 15 Inner AW 19/05/2015 14:11 Page 13 OWNERSHIP Digital retail Retail sales – digital £168 £130 £99 £80 24.1 £71 19.2 £35 £17 15.5 12.2 13.6 £2.6 7.8 5.2 1.0 2007 2008 2009 2010 2011 2012 2013 2014 Source: IHS Value £ million Volume million Digital retail market shares - 2013 Value % Digital retail market shares - 2014 Value % iTunes 79% iTunes 57% Blinkbox 8% Blinkbox 8% Google Play 5% Store Google Play 7% Store Xbox Live 3% Sky 4% Sainsbury's 2% Amazon 19% Instant Total Sony 1% Other 3% Other 5% Source: Kantar Worldpanel The volume of digital copies downloaded to own increased 25% with consumer spend increasing 29%. Whilst New Release films in SD and HD retail at around £10 and £14 respectively, average prices remain below £7 per copy due to the high volume of individual TV episodes. Two major new retailers, Amazon and Sky, entered the market and Blinkbox was bought by TalkTalk from Tesco. copies per annum Superfast broadband is in reach of 82% of households and is forecast to be 95% within two years which will no doubt help the market. The typical digital buyer is male, 25-34, ABC1. 3 13 BVA YB 15 Inner AW 19/05/2015 19:16 Page 14 OWNERSHIP Video ownership – DVD Retail sales – DVD Company shares 2014 DVD Value £2,227 £2,164 Warner £1,839 £1,639 248 13.3% Universal Pictures £1,526 253 13.4% Walt Disney £1,314 235 210 £1,186 192 13.0% 20th Century Fox 12.6% Entertainment One 7.1% £1,033 Elevation Sales 6.8% 125 BBC Worldwide Sony Pictures 162 143 6.6% 6.1% Paramount Channel 4 4.7% 2.0% Other 2007 2008 2009 2010 Volume (million) 2011 2012 2013 14.4% 2014 Value (million) Factfile 31% DVD Market: Sold: 125.5m Average sales price: £8.23 Total consumer spend: 1/3 of DVDs are bought as gifts. £1.033bn DVDs remain the firm favourite accounting for 72% of the buy-to-own segment and generating £1.033 billion in consumer spending. 2014 DVD top 10 Volume Pos Title 1 Frozen The Hobbit – The Desolation Of 2 Smaug The Hunger Games – 3 Catching Fire* 4 Mrs Brown’s Boys – D’Movie 5 The Lego Movie 6 The Inbetweeners Movie - 2* 7 The Wolf Of Wall Street 8 Guardians Of The Galaxy 9 Maleficent 10 Gravity Company Walt Disney Warner Lionsgate/ Elevation Sales Universal Pictures Warner Channel 4 DVD Universal Pictures Walt Disney Walt Disney Warner *Includes box-sets. Source: Official Charts Company 14 BVA YB 15 Inner AW 19/05/2015 19:16 Page 15 OWNERSHIP Video ownership – Blu-ray Retail sales – Blu-ray £252 £229 £223 £231 £199 18.8 £135 17.5 16.7 15.3 13.0 £65 8.4 £16 3.7 0.8 2007 2008 2009 Volume (million) 2010 2011 2012 2013 2014 Value (million) Company shares 2014 Blu-ray Value Warner 21.5% Walt Disney 15.5% 20th Century Fox 13.9% Universal Pictures 9.6% Elevation Sales 9.1% Entertainment One 7.1% Sony Pictures 6.5% Paramount EIV BBC Worldwide 5.9% 2.3% 1.7% Other 6.9% Factfile Disc Ownership Market: Blu-ray Discs: Sold: 2014 Blu-ray top 10 Volume 17.5m Average sales price: £13.20 Pos Title The Hobbit – The Desolation Of 1 Smaug 2 Frozen 3 Gravity 4 Guardians Of The Galaxy The Hunger Games – 5 Catching Fire* 6 Thor - The Dark World* Captain America - The Winter 7 Soldier* 8 X-Men - Days Of Future Past* Transformers - Age Of 9 Extinction* 10 The Amazing Spider-Man 2* Company Warner Walt Disney Warner Walt Disney Lionsgate/ Elevation Sales Walt Disney Walt Disney 20th Century Fox Paramount Sony Pictures *Includes box-sets. Source: Official Charts Company Total consumer spend: £231m Blu-ray, at £231m, accounted for 16% of ownership. 15 BVA YB 15 Inner AW 19/05/2015 14:11 Page 16 OWNERSHIP Video ownership – DVD and Blu-ray – seasonality Retail seasonality by month - 2014 £12.19 £11.36 £12.16 £11.90 £11.22 £11.22 £11.28 £10.99 £11.08 £12.10 £11.43 £11.90 £7.17 £6.93 £7.20 £7.19 Jan Feb Mar Apr May Jun Jul Aug New Release volume New Release average sale price Catalogue volume Catalogue average sale price Oct 8% 10% Sep 7% 5% 8% 6% 7% 6% 6% 5% 7% 6% 6% 5% 7% 8% 7% 7% 9% 7% 23% £7.10 £7.71 £7.34 19% £7.31 10% £6.70 £6.76 9% £8.47 £7.51 Nov Dec Factfile 20% of all video disc sales are in December, more than double any other month. Average sales prices in December were £1.21 more per disc than the average of the other eleven months. Q4 accounted for 36% of sales in 2014, down from 39% in 2013 and a peak of 42% in 2012. Average sales prices in Q4 were higher than the rest of the year with DVDs attracting a 7% premium with 5% on Blu-ray Discs. 38% of New Release sales in 2014 were in Q4, showing the importance of the season to fresh content. % Share of sales in December Live comedy – Music – 61% 32% 26% Film – 19% TV – 18% Children’s Sport, health & fitness – 14% 24% 20% 20% Q1 Q2 Q3 36% Q4 Source: Official Charts Company 16 BVA YB 15 Inner AW 19/05/2015 14:11 Page 17 BVA YB 15 Inner AW 19/05/2015 14:11 Page 18 OWNERSHIP Title of the year Frozen Walt Disney’s Frozen was the best-selling video on disc in 2014, selling 4m copies and generating £41.1m. This included £6.7m in Blu-ray sales. Launched on 31st March, it became the biggest selling video this decade overtaking Skyfall. Factfile Release date: 31 March 2014 Weeks at number one in the Official Video Charts: Nine Sold: 4m Consumer spend: £41.1m Average sales price weeks 1-13: £11.36 Average sales price after week 13: £9.09 Week One sales: 899k Month One sales: 1.5m Sales to Week 13*: 2m Cumulative disc sales to year end 3949k 1500k 2970k 2646k 2138k 2272k 2375k 1983k 979k 1747k 1500k 247k Apr May 2014 Monthly sales 236k Jun 155k 134k 103k Jul Aug Sep 271k 324k Oct Nov Dec Cumulative sales *After 13 weeks a title is categorised as Catalogue and no longer New Release. Source: Official Charts Company 18 BVA YB 15 Inner AW 19/05/2015 14:11 Page 19 BVA YB 15 Inner AW 19/05/2015 14:12 Page 20 OWNERSHIP Video ownership – DVD and Blu-ray – new release 2014 video top 10 - new release Volume Pos Title 1 Frozen The Hobbit – The Desolation Of 2 Smaug 3 Mrs Brown’s Boys – D’Movie 4 Guardians Of The Galaxy 5 *The Inbetweeners Movie - 2 *The Hunger Games – 6 Catching Fire 7 The Lego Movie 8 *X-Men – Days Of Future Past 9 Gravity 10 Maleficent Company Walt Disney Company shares – new release 2014 Value 14.5% 20th Century Fox 12.6% Warner 14.2% Universal Pictures Universal Pictures Walt Disney Channel 4 Lionsgate/Elevation Sales 8.3% 12.5% Warner 21.9% 11.8% Walt Disney 16.1% Warner 20th Century Fox Warner Walt Disney 8.9% Entertainment One 9.4% 8.0% Elevation Sales 10.4% *Box-sets included. 5.5% Sony Pictures 6.4% 4.8% BBC Worldwide 1.6% 4.0% Paramount 5.7% Factfile 3.1% Channel 4 1.5% New Release represents 44% of physical market value Total consumer spend on New Release: £559m DVD Blu-ray Disc Source: Official Charts Company 77% DVD, 23% Blu-ray Sold: 47.9m copies Average DVD sales price: £10.85 Average Blu-ray sales price: £15.64 67% of New Release volume is Film 49% of New Release sales are in Week One 20 New Release rankings by title and distributor vary with the rankings for all video across the year. New Release is defined as any sale within the first 13 weeks of the release date. Half of all sales of New Release titles are made within the first week after release. TV genre commands the highest average sales price at £19.87. BVA YB 15 Inner AW 19/05/2015 14:12 Page 21 OWNERSHIP Video ownership – DVD and Blu-ray - catalogue 2014 video top 10 - catalogue Volume Pos Title 1 Frozen The Hobbit – The Desolation Of 2 Smaug 3 The Little Mermaid The Hobbit – An Unexpected 4 Journey 5 The Jungle Book 6 Despicable Me 2 Company shares – catalogue 2014 Value Company Walt Disney 14.5% Walt Disney 14.7% Warner 13.8% Warner Home Video 20.9% Walt Disney Warner 12.2% Universal Pictures 11.1% Walt Disney Universal Pictures 11.3% 20th Century Fox HE 15.4% 7 The Wolf Of Wall Street 8 Sleeping Beauty 9 The Hunger Games 10 Rio Universal Pictures Walt Disney Lionsgate/Elevation Sales 20th Century Fox 7.5% Sony Pictures HE 6.5% 7.0% BBC Worldwide 1.8% 6.0% Elevation Sales 7.6% Factfile 5.7% Entertainment One 4.4% 95m Catalogue video discs sold, representing 67% of total physical market Total consumer spend on Catalogue: 5.3% Paramount Home Ent 6.2% 2.2% FremantleMedia 0.7% DVD £705m Blu-ray Disc Source: Official Charts Company 85% DVD, 15% Blu-ray Average DVD sales price: £7.01 Average Blu-ray sales price: £11.13 57% of volume is Film Disney increased share from 10.7% to 14.5% C AT The Hobbit – An Unexpected Journey, The Jungle Book and Rio all appeared in the 2013 Catalogue Top 10 showing their enduring appeal. Walt Disney re-released its classic titles in the year increasing its share of the Catalogue segment. TV genre commands the highest average sales price at £14.68. E 55% Catalogue is defined as any sale more than 13 weeks after release date. This means the chart includes titles released in 2013, or before, and excludes any titles released in Q4 of 2014 as they would still be regarded as New Release. ALOGU 55% of all disc sales are for Catalogue product. 21 BVA YB 15 Inner AW 19/05/2015 14:12 Page 22 OWNERSHIP Film – DVD and Blu-ray 2014 video top 10 - film on DVD and Blu-ray Volume Pos Title The Hobbit – The Desolation Of 1 Smaug *The Hunger Games – 2 Catching Fire 3 Mrs Brown’s Boys – D’Movie 4 Guardians Of The Galaxy 5 *The Inbetweeners Movie - 2 6 Gravity 7 The Wolf Of Wall Street 8 *X-Men – Days Of Future Past 9 *Thor – The Dark World 10 Maleficent Company Warner Company shares – film 2014 Value 20th Century Fox 14.7% Warner 14.5% Universal Pictures 12.8% Lionsgate/Elevation Sales Elevation Sales Universal Pictures Walt Disney Channel 4 Warner Universal Pictures 20th Century Fox Walt Disney Walt Disney 12.0% Entertainment One 10.4% 8.5% Walt Disney 7.2% Sony Pictures 6.2% Paramount 3.1% EIV Channel 4 1.8% *Box-sets included. Factfile Sold: 86.8m Film represented 43% of titles released in 2014, 54% of total disc market value and 61% of sales by volume. The Top 10 sold over 10m copies between them with the top 3 films each selling more than 1m copies each. copies Average selling price: £7.81 The Hobbit – The Desolation Of Smaug was the top-selling title on both DVD and Blu-ray. 63% of sales volume Action/adventure (23%), comedy (21%), drama (16%) and sci-fi (13%) are the most popular sub-genres within Film whilst sci-fi commands a 25% premium over the average selling prices of films with action/adventure at 16%. Family titles sell at 20% below the average of other Film titles. is Catalogue 52% of sales value is New Release Company shares – film on Blu-ray 2014 Value Warner 20.3% 20th Century Fox 15.1% Elevation Sales 11.9% Walt Disney 11.5% Universal Pictures 10.2% Factfile Sold: 14m copies Company shares – film on DVD 2014 Value 20th Century Fox 14.6% Universal Pictures 13.6% Warner 12.5% Elevation Sales 12.1% Walt Disney 7.5% Factfile Sold: 73m Consumer spend: £171m Consumer spend: £507.3m Average selling price: £12.23 Average selling price: £7.81 Film makes up 80% of all Blu-ray Discs sold by volume Film makes up 58% of all DVDs sold by volume Source: Official Charts Company 22 BVA YB 15 Inner AW 19/05/2015 14:12 Page 23 THE WALT DISNEY COMPANY WISHES YOU A JOYFUL SUMMER WITH OUR MAJOR EMOTION PICTURE MEET THE LITTLE VOICES INSIDE YOUR HEAD. /DisneyPixarUK ©2015 Disney/Pixar BVA YB 15 Inner AW 19/05/2015 14:12 Page 24 OWNERSHIP Children’s – DVD and Blu-ray 2014 video top 10 - children’s animated film Volume Pos Title 1 Frozen 2 3 4 5 The Lego Movie *How To Train Your Dragon 2 *Despicable Me 2 The Croods *Cloudy With A Chance Of 6 Meatballs 2 7 *The Little Mermaid 8 *Rio 2 9 Turbo 10 *Monsters University Company Walt Disney Warner 20th Century Fox Universal Pictures 20th Century Fox Sony Pictures Walt Disney 20th Century Fox 20th Century Fox Walt Disney Company shares – children’s animated film 2014 Value Walt Disney 58.7% 20th Century Fox 15.6% Warner Universal Pictures Sony Pictures Paramount 8.5% 6.4% 3.5% 2.3% Entertainment One 1.9% Elevation Sales 1.5% *Box-sets included. Source: Official Charts Company Factfile 20m copies sold 70% Catalogue = 59% 30% New Release Consumer spending £165m market share 59% Catalogue 41% New Release Walt Disney’s Frozen became the bestselling video this decade with sales of over 4m copies on DVD and Blu-ray propelling the studio to nearly 59% market share of the animated film genre market. Box-sets perform well within this genre with six of the top ten titles including multiple discs. Amongst these, the How to Train Your Dragon franchise (20th Century Fox) performed strongly, securing third place in the Top Ten by Volume chart. 24 Frozen accounted for 1:5 of all copies sold BVA YB 15 Inner AW 19/05/2015 14:12 Page 25 OWNERSHIP Children’s – DVD and Blu-ray 2014 video top 5 - pre-school Volume Pos Title Thomas And Friends – Tale Of 1 The Brave Peppa Pig – Fire Engine And 2 Other Stories 3 Peppa Pig – Princess Peppa 4 Peppa Pig – Peppa’s Circus Peppa Pig – The Holiday And 5 Other Stories Company shares – pre-school 2014 Value Company Entertainment One Hit Entertainment HiT Entertainment 29.4% 27.3% BBC Worldwide 10.5% Entertainment One Universal Pictures Entertainment One Entertainment One 8.0% Walt Disney 7.2% 6.2% Abbey Home Media Entertainment One 3.3% Elevation Sales BVA Volume Sales. Paramount 1.7% FremantleMedia 1.3% Factfile 2.6m copies sold 85% Catalogue 15% New Release Consumer spending £13.1m 2014 video top 5 - school age Volume Pos Title 1 Lego Batman 2 Toy Story Of Terror Dragons – Riders Of Berk Part 3 2 Monster High – Frights Camera 4 Action 5 Scooby Doo Meets Batman Company Warner Walt Disney 20th Century Fox Universal Pictures Warner BVA Volume Sales. *Box-sets included. Company shares – school age 2014 Value Warner Factfile 24.9% Universal Pictures 21.9% Walt Disney 8m copies sold Paramount 84% Catalogue 16% New Release Consumer spending £41.9m 20.4% 20th Century Fox FremantleMedia 7.2% 3.5% 2.9% Abbey Home Media 2.9% Sony Pictures 2.8% Entertainment One Elevation Sales 2.8% 2.7% Source: Official Charts Company 25 BVA YB 15 Inner AW 19/05/2015 14:12 Page 26 OWNERSHIP TV – DVD and Blu-ray 2014 video top 10 - TV Volume Pos 1 2 3 4 5 6 7 8 9 10 Title *Game Of Thrones – Season 3 *Breaking Bad – Final Season *Sherlock – Season 3 Top Gear – Perfect Road Trip 2 *The Big Bang Theory – Season 7 Breaking Bad – Seasons 1-3 Mrs Brown’s Boys – Seasons 1-3 Breaking Bad – Season 5 Breaking Bad – Season 4 Game Of Thrones – Season 1 Company shares – TV 2014 Value Company Warner Sony Pictures BBC Worldwide BBC Worldwide Warner Sony Pictures Universal Pictures Sony Pictures Sony Pictures Warner Warner 21.5% BBC Worldwide 18.4% 11.1% 20th Century Fox Universal Pictures 10.1% Sony Pictures 8.5% 4.8% Paramount 3.7% FremantleMedia Entertainment One 3.3% Walt Disney 3.0% RLJ Entertainment 2.9% *Box-sets included. 2014 top TV franchises Volume Pos 1 2 3 4 5 Title Breaking Bad Game Of Thrones Mrs Brown's Boys Top Gear Downton Abbey Factfile Sold: 18.9m copies Consumer spend: £303m Average selling price: £16 One in 4 £ is spent on TV 75% of sales are Catalogue New Release average sales price: £19.87 Source: Official Charts Company 26 BVA YB 15 Inner AW 19/05/2015 14:12 Page 27 OWNERSHIP Music – DVD and Blu-ray 2014 video top 10 - music Volume Pos Title Company shares – music 2014 Value Artist Company Sony 1 This Is Us One Direction Pictures Where We Are – Live Sony 2 One Direction From San Siro Stadium Music Live At The O2 and Universal 3 McBusted Tour Play Pictures Entertainment 4 Through The Never Metallica One Ghost Stories – Live Warner 5 Coldplay 2014 Music Lord Of The Dance – Michael Universal 6 Dangerous Games Flatley Pictures Original 20th 7 Shrek The Musical Broadway Cast Century Fox Universal 8 Magic Of The Musicals André Rieu Music The War Of The Worlds – Universal 9 Jeff Wayne New Generation Pictures Searching For Sugar Studio Canal/ 10 Rodriguez Man Elevation Sales Universal Music 23.8% Sony Music 13.3% Universal Pictures 9.2% Warner Music 7.2% Sony Pictures 7.1% Opus Arte 3.3% Eagle Rock 3.0% Channel 4 2.2% BBC Worldwide 2.0% 20th Century Fox 1.4% Source: Official Charts Company Factfile Sold: 1.8m Consumer spend: £17.9m In April 2014, Vivendi-owned Universal Music, who own labels from A&M Records to Virgin EMI, acquired UK-based Eagle Rock for an undisclosed sum. Eagle Rock’s library includes nearly 2000 hours of programming and more than 800 titles and shows their confidence in the UK music video market. Average selling price: £9.79 Top selling artists: One Direction One-in-five of all music videos sold Andre Rieu 5% of all music video discs sold One Direction 27 BVA YB 15 Inner AW 19/05/2015 14:12 Page 28 BVA YB 15 Inner AW 19/05/2015 14:12 Page 29 OWNERSHIP Sport and fitness – DVD and Blu-ray 2014 video top 5 - fitness Volume Pos Title 1 Davina – Fit in 15 Company shares – fitness 2014 Value Company BBC Worldwide Lionsgate /Elevation Sales Universal Pictures Universal Pictures 2 Jillian Michaels – 30 Day Shred 3 4 Vicky’s 7 Day Slim Josie Gibson’s 30 Second Slim 10 Minute Solution – Blast Off Anchor Bay Belly Fat 5 BBC Worldwide 26.9% Universal Pictures 22.1% Elevation Sales 12.7% Anchor Bay RLJ Entertainment 9.8% 5.8% Source: Official Charts Company Factfile Sold: Whilst Jillian Michaels sold the most videos in 2014, Davina McCall commanded a significantly higher price for her titles generating 61% more revenue on 8% fewer sales. 1.02m Consumer spend: £8.9m Average selling price: £8.79 79% of sales are Catalogue 99.9% are on DVD 47% of all fitness videos accounted for by just three brands: Jillian Michaels: 188k - £1.3m Davina McCall: 174k - £2.1m 10 Minute solution: 114K - £602k 2014 video top 5 - sport and other Volume Pos 1 2 3 4 5 Title WWE – Wrestlemania 30 London 2012 Olympic Games Ryder Cup 2014 Official Film The British & Irish Lions 2013 Liverpool FC Season Review 2013/14 Company FremantleMedia BBC Worldwide Lace DVD Lace DVD Company shares – sport and other 2014 Value FremantleMedia 41.5% Lace DVD Duke BBC Worldwide Go Entertain 12.3% 7.7% 6.7% 6.1% BBC Worldwide Source: Official Charts Company Factfile Sold: 573k Consumer spend: £6.5m Average selling price: £11.34 62% of sales are Catalogue 93% are on DVD WWE accounts for 30% of sales in Sport & Other (171k). 29 BVA YB 15 Inner AW 19/05/2015 14:12 Page 30 OWNERSHIP Special interest (live comedy) – DVD and Blu-ray 2014 video top 10 - special interest: comedy Volume Pos Title My, What I Call - Live Show For The Love of Mrs Brown - Live Tour Company Universal Lee Evans Pictures BBC Miranda Hart Worldwide Mrs Brown’s Universal Boys Pictures Home Bird - Live Sarah Millican Channel 4 Mrs Brown Rides Again Back In The Game Live Mrs Brown’s Boys Micky Flanagan Universal Pictures 7 Hit The Road Mack Lee Mack 8 Wonderbox Live 1 2 3 4 5 6 Artist Monsters - Live Jack Whitehall Gets 9 Around - Live Kevin Bridges – The 10 Full Story Boxset Russell Howard Jack Whitehall Kevin Bridges Distributor shares 2014 Value Universal Pictures 58% BBC Worldwide 19% Channel 4 Universal Music Anchor Bay 17% 2% 1% Channel 4 BBC Worldwide Channel 4 Channel 4 Universal Pictures Factfile Sold: 3m Consumer spend: £28.3m Average sales price: £9.49 Comedy is COMEDY 87% of market New Release is two of market 61% sales thirds DECEMBER 2014 video top 4 - special interest: other Volume Pos Title 1 The Secret Best of 3D – The Ultimate 3D 2 Collection 3 Midnight Tango 4 Shakespeare’s Richard III Company Brightspark Universal Pictures Kaleidoscope Opus Arte Distributor shares 2014 Value Opus Arte 7.9% Universal Pictures 6.3% BFI 6.2% Go Entertain FremantleMedia 4.3% 4.1% Simply Media 3.3% Kaleidoscope 3.2% Source: Official Charts Company 30 BVA YB 15 Inner AW 19/05/2015 14:12 Page 31 BVA YB 15 Inner AW 19/05/2015 14:12 Page 32 R E N TA L Rental overview 2014 video rental split Digital rental sVoD £381 Million 34 % tVoD £264 Million Digital rental revenues have risen to £645 million. Disc rental £106 Million Source: IHS Proportion of GB renting annually 16.4% Total rental excluding sVoD 16.2% 13.8% VoD 9.5% 10.2% sVoD 6.4% 6.1% Disc rental 10.0% 2014 2013 Source: Kantar Worldpanel. GB only. The digital rental market continues to grow and was worth £645 million in 2014 according to IHS an increase of 34%. This increase has been driven by services from companies such as Netflix, Amazon and iTunes offering content either on a subscription basis with a monthly fee or on a transactional basis for limited time viewing. Factfile 8.1m people rented a video 46% more people rented VoD Consumer spending grew 25% on VoD and 35% on sVoD 32 BVA YB 15 Inner AW 19/05/2015 14:12 Page 33 R E N TA L Rental consumer behaviour Average number of VoD rentals 4.6 Transactional VoD 5.7 3.5 iVoD 3.5 4.6 TV-VoD 5.3 2014 2013 Source: Kantar Worldpanel 2.2 million more people rented VoD in 2014 than in 2013. With more new consumers in the market. Factfile Average spend per consumer on iVoD The VoD renter is typically male (70%), aged between 25 and 44 years (55%) and in ABC1 demographic (65%). £14.16 and on TV-VoD £20.41 Digital rental market Share of digital rental market 70% 50% 2010 77% 23% 2011 71% 29% 2012 52% 48% 2013 43% 57% 2014 41% 59% 30% 21% 645 495 329 159 193 tVoD 2010 2011 2012 growth rate year on year 2013 sVoD 2014 £ million Source: IHS 33 BVA YB 15 Inner AW 19/05/2015 14:12 Page 34 R E N TA L Rental market share tVoD - value market share sVoD - volume market share Sky 54.5% Netflix 71.1% iTunes 9.4% Now TV 12.8% Blinkbox 8.6% Virgin Media 7.0% Amazon 16.1% BT 6.5% Amazon 5.3% Google 2.6% Other 6.1% Transactional VoD (tVoD and iVoD), where you pay to watch but do not own the content, is dominated by Sky with a market share 53.5% according to Kantar Worldpanel. The transactional VoD market grew by 25% in 2014 and was worth £260 million. The VoD consumer is typically male (69.7%) and aged 25-44 years old (55%) although 10.9% are aged under 20. The sVoD market, where you pay a monthly subscription and can watch a range of content when you want but do not own the content, is dominated by Netflix with a market share 71.1%. The sVoD market was worth £380m in 2014 which was a 31% increase on 2013. UNDER 25-34 ABC1 The typical VoD renter is male, 25-44, ABC1. 20 14% 6.9 million people rented a video via a transactional VoD service. Nearly 11% of VoD consumers are aged under 20. Source: Kantar Worldpanel 34 BVA YB 15 Inner AW 19/05/2015 14:12 Page 35 BVA YB 15 Inner AW 19/05/2015 14:12 Page 36 H A R D WA R E Hardware Average TV screen size 18.9” 25.4” 1994 2004 We are experiencing a big screen revolution. Average screen sizes have been growing 1 inch per year. However in 2014 they grew 3 inches to 36”. The 50”+ category was c13% by volume and the largest by value at c30%. The FIFA World Cup and ‘Black Friday’ helped bring forward TV volume sales, according to GfK, although it is not thought that the two events increased sales overall. 36.3” 2014 Factfile AV hardware spend up 8% including games consoles. TV volume sales up 4% Average screen size up to 36” 3” 50”+ now 30% of consumer spend. Factfile 200k UHD TVs sold. 2.7m DVD players sold. 1.1m Blu-ray players sold. Source: GfK 36 BVA YB 15 Inner AW 19/05/2015 14:12 Page 37 BVA YB 15 Inner AW 19/05/2015 14:12 Page 38 DIRECTORY BVA Full Members Abbey Home Media Group Ltd 435-437 Edgware Road, London W2 1TH Tel: 020 7563 3910 www.abbeyhomemedia.com Managing Director: Anne Miles BBC Worldwide Consumer Products 33 Foley Street, London W1W 7TL Tel: 020 7612 3000 www.bbcworldwide.com Head of Sales: Rhidian Bragg British Film Institute (BFI) 21 Stephen Street, London W1T 1LN Tel: 020 7255 1444 www.bfi.org.uk Head of DVD: Sam Dunn Channel 4 DVD 124 Horseferry Road, London SW1P 2TX Tel: 020 7396 4444 www.channel4.com Head of DVD: David Root Eagle Rock Entertainment Ltd Eagle House, 22 Armoury Way, Wandsworth, London SW18 1EZ Tel: 020 8870 5670 www.eagle-rock.com UK & International Marketing Manager: Ian Rowe Elevation Sales Ltd 4th Floor, 172 Tottenham Court Road, London W1T 7DL Tel: 020 3006 8383 www.elevationsales.co.uk Managing Director: Kevin Dersley Entertainment One 45 Warren Street, London W1T 6AG Tel: 020 3691 8600 www.entertainmentone.co.uk Head of Home Entertainment: Ken McMahon FremantleMedia 1 Stephen Street, London W1T 1AL Tel: 020 7691 6000 www.fremantlemedia.com Catalogue and Market Insight Manager: Grahame Davidson 38 HiT Entertainment 5th Floor, Maple House, 149 Tottenham Court Road, London W1T 7NF Tel: 020 7554 2500 www.hitentertainment.com Director UK Home Entertainment, UK & Eire: Simon Riches ITV Studios Home Entertainment The London Television Centre, Upper Ground, London SE1 9LT Tel: 020 7157 3000 www.itvstudios.com Director of Home Entertainment: Kevin Morgan Kaleidoscope Home Entertainment 104-108 Oxford Street, London W1D 1LP Tel: 020 3397 4410 www.kaleidoscopehomeentertainment.com CEO: Spencer Pollard Koch Media Ltd 2nd Floor, Building 5, 50 Brook Green, Hammersmith W6 7BJ Tel: 01256 385 200 www.kochmedia.co.uk Managing Director: Craig McNicol Lionsgate Home Entertainment 60 Charlotte Street, London W1T 2NU Tel: 020 7299 8800 www.lionsgatefilms.co.uk Managing Director Home Entertainment: Nicola Pearcey Paramount Home Media Distribution UK Building 5, Chiswick Park, 566 Chiswick High Road, London W4 5YF Tel: 020 3184 2300 www.paramountpictures.co.uk Managing Director: Charlie McAuley Simply Media Highlight House, 57 Margaret Street, London W1W 8SJ Tel: 020 3542 3722 www.simplymedia.tv Head of Logistics & Licensing: Debbie Ormerod BVA YB 15 Inner AW 19/05/2015 14:12 Page 39 DIRECTORY Sony Pictures Home Entertainment Sony Pictures Europe House, 25 Golden Square, London W1F 9LU Tel: 020 7533 1000 www.sonypictures.co.uk Senior Vice President Northern Europe: Kim Overall Universal Pictures (UK) Ltd 1 Central St Giles, St Giles High Street, London WC2H 8NU Tel: 0203 618 8000 www.universalpictures.co.uk Managing Director: Ian Foster StudioCanal 50 Marshall Street, London W1F 9BQ Tel: 020 7534 2700 www.studiocanal.co.uk General Manager Home Entertainment: John Rodden The Walt Disney Company Limited 3 Queen Caroline Street, London W6 9PE Tel: 020 8222 1000 www.disney.co.uk Category Commercial Director: Dean Pappadakis Twentieth Century Fox Home Entertainment Twentieth Century House, 31-32 Soho Square, London W1D 3AP Tel: 020 7753 8686 www.fox.co.uk Managing Director: Robert Price Warner Home Entertainment Warner House, 98 Theobald’s Road, London WC1X 8WB Tel: 020 7984 5000 www.warnerbros.co.uk Managing Director: John Stanley Associate Members Once Upon A Time Tel: 020 7534 8800 www.onceuponlondon.com The Delta Group Tel: 020 8498 4400 www.thedeltagroup.co.uk Samsung Electronics (UK) Ltd Tel: 01932 455 551 www.samsung.com Blueprint London Tel: 020 7183 9666 www.blueprint-london.com MPO UK Ltd 020 3567 1135 www.mpo.co.uk Sony DADC Tel: 020 7462 6222 www.sonydadc.com Cinram Operations UK Ltd Tel: 01473 271 010 www.cinramgroup.com Panasonic UK Ltd Tel: 01344 862 444 www.panasonic.co.uk Technicolor Disc Services International Tel: 020 8987 7800 www.technicolor.com Delga Press Tel: 01634 227 000 www.delga.co.uk Premier Tel: 020 7292 8330 www.premiercomms.com West10 Entertainment Tel: 020 3393 8291 www.west10entertainment.com 39 BVA YB 15 Inner AW 19/05/2015 14:12 Page 40 ACKNOWLEDGEMENTS With grateful thanks Written by Giles Finnemore, Insight Consultant to the BVA Yearbook published by British Video Association (BVA) 3 Soho Square LONDON W1D 3HD Tel: 020 7439 8817 www.bva.org.uk For general BVA enquiries, contact [email protected] The BVA would like to thank the following for their help in compiling this Yearbook: Blue Rubicon David Burrill GfK IHS Julie Harriss Kantar Worldpanel Millward Brown Official Charts Company Patricia Lennon Simon Heller The Nursery Research & Planning West10 Entertainment Grateful thanks to BVA members for providing images. Publishing Editor: Liz Bales, Chief Executive, BVA. DESIGN BY GNB Communications www.gnbcommunications.co.uk 40 No part of this publication may be transmitted in any form or by any means electronic or mechanical including photocopying and recording without permission in writing. BVA members receive complimentary copies of the Yearbook. If you are interested in joining the British Video Association, please contact us. © British Video Association All rights reserved ISBN 978-0-9932240-8-9 BVA YB15 Inside Cover 19/05/2015 14:07 Page 1 BVA YB15Full Cover 19/05/2015 14:10 Page 1 B VA YEARBOOK 2015 TH E BVA YE A R BOOK 2015 PRICE: £599 iPad and PDF copies available f o r £ 9 9 9 f r o m w w w. b v a . o r g . u k British Video Association
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