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2020: THAT WAS THE YEAR THAT WAS
PHYSICAL DOWN. DIGITAL UP
INDUSTRY HITS RECORD HIGH
4K TEMPTS MORE CONSUMERS
STREAMING RISES ACROSS ENTERTAINMENT MARKET
BASE: PHYSICAL STILL STRONG AS INDUSTRY CHANGES
ERA: “IN 2020 WE NEEDED ENTERTAINMENT”
“RESILIENCE, ADAPTABILITY THE BYWORDS”
ANALYSTS: “TRANSACTIONAL, SVOD CAN GROW TOGETHER”
UNIVERSAL LEADS PHYSICAL MARKET SHARE
THE RAYGUN 2020 POLL
TENET FIGHTS OFF MUTANTS
BYRNING DOWN THE HOUSE
TRUSTY STEED CELEBRATED
OBVIOUSLY GIVES TO CHARITY
QUOTE OF THE WEEK
AT THE MOVIES
TWEET OF THE WEEK
TRAILERS OF THE WEEK
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In a year blighted by Covid-19 and its catastrophic effect on life in the UK and globally, the year-end figures for the home entertainment business, as revealed by trade and retailer organisations such as BASE and ERA this week, were always going to reflect the madness that was 2020. The figures only serve to confirm what many had known – physical suffered, while digital in all its myriad forms showed huge lockdown-inspired growth. Overall, according to the BASE figures, the video category soared, up by 26 per cent over the 12 months and now representing a value of a mammoth £3.3 billion. EST was one of the strong performers, attaining record new heights during lockdown and growing by 16 per cent over the year in value and 27 per cent in volume. Video on demand grew by 24 per cent. Digital now accounts for 56 per cent of transactional spend, while physical content titles are positively thriving on ultra high definition formats – 4K Ultra HD releases made up almost a quarter of Blu-ray spend and went past the 1 million mark in units terms for the first time. The customer base widened too, growing by 14 per cent between March and November, rising to 12.9 million. Another lockdown benefit saw catalogue TV disc sales rising by more than five per cent. BASE could also point to a whopping rise on subscription video on demand too, with SVOD services soaring by 42 per cent in 2020, with streaming accounting for almost three quarters of the business. Kantar’s figures – Worldpanel sits alongside Futuresource Consulting and Official Charts Company as being a key provider of year-end data – said that almost one on four households signed up to a subscription service in the first quarter of 2020, with seven and 3.5 per cent respectively signing up in the next two quarters. BASE also pointed to the success of the Indies in 2020, with non-studio distributors enjoying a five per cent increase in share of value spend on disc over the 12 months, from 25 to 30 per cent.
More detail on year-end from BASE, broken down by area. As noted, EST was up in value and volume and now makes up 43 per cent of the transactional market. During the first three-month lockdown digital film accounted for 45 per cent of the nearly £140 million spent on retail disc and film EST compared to 26 per cent the previous year. By the end of the year, film EST saw similar growth of 10 percentage points, up from 26 per cent in 2019 to more than a third of all transactions across the the year. Catalogue has grown in EST terms too, thanks in no small part to a lack of new releases coming through from cinemas. It rose from under half to 56 per cent of all film EST transactions, showing 42 per cent growth year on year and up every week since lockdown started.
The video on demand figures make for similarly fascinating reading. It saw a huge growth during the spring into summer lockdown, rising from 600,000 per week to more than 1 million after it kicked in. There were 30.8 million rental transactions to the end of October 2020, making up more than a third of the 75 million units purchased across disc, film EST and VOD. Interesting too to note the growth in premium EST and premium VOD. More than 1.1 million consumers have rented a PVOD title since March, making up six per cent of digital rentals and 20 per cent of rental spend. On the physical side, Blu-ray continues to close the gap on DVD, inching up to 30 per cent of physical sales, up by three percentage points. What’s more, the selling price was up 7.1 per cent, the average BD title now going for £15.94. Blu-ray catalogue was worth more than £73 million. 4K Ultra High Definition was up 20 per cent year-on-year, now counting for 23 per cent of total BD sales. Moreover, 4K releases of titles more than a year old now total almost £20 million in value, accounting for 73 per cent of 4K sales. TV content continued to grow too, with catalogue growing 5.7 per cent and now worth £80 million. In market share terms, Disney was the leading distributor, boasting a 19.1 per cent share of the combined disc and digital volume sale. Universal was the leading distributor for disc sales in both volume and value terms.
More figures came from the retail side, as the Entertainment Retailers Association, aka ERA. It showed streaming rising across the board – increases in digital video, music and games activity helped revenues rise by 16.8 per cent to more than £9 billion across the entire sector. Digital revenues grew by £1.4 billion to £7.8 billion. Digital video revenue, boosted by the Disney+ launch, Indies such as Acorn TV and the giants Netflix and Amazon Prize, rose by 37.7 per cent. Music had its best year since 2006, while games, with more than £4 billion in revenue, is the biggest o the trinity. More than 80p in every entertainment pound spent is on digital. Vinyl was the only physical sector to grow, up more than 13 per cent. ERA said physical retail video was down 25.5 per cent, but still worth £355.7 million. Physical rental was down 27.6 per cent to £16.9 million. Digital, as noted in the BASE figures, as up 37.7 per cent and the overall market was up 25.6 per ent. Physical sales across entertainment were down a touch over 10 per cent, digital was up 22.8 per cent.
Comment came from across the board. Liz Bales, Chief Executive, BASE said: “With the pandemic affecting all corners of life across 2020, evolution in the video category has undoubtedly advanced. Digital transactional video has arguably been a beneficiary of conditions that forced people to stay home, as more than two million new customers joined millions more already engaging with EST and VOD content, uncovering a depth and breadth of diverse catalogue and new release content available without subscription. This shift to digital doesn’t diminish the resilience of physical formats, though, as evidenced by the performance of TV and catalogue content on disc, and by the strength of premium formats like Blu-ray and 4K UHD both underlining that many viewers are still driven by collection and the access to the best possible home viewing experience that disc provides. 2021 is clearly set to be a year of unknowns as a post-pandemic normality develops, but it is clear that the transactional market, in its established and newer distribution models, continues to be a significant part of the picture across an industry well versed in dealing with change.”
ERA’s Kim Bayley said: “If there was ever a year in which we needed entertainment, it was 2020. The trend towards an increasingly digital entertainment market may be long established, but no one could have foreseen this dramatic leap as digital services filled the gap left by shuttered cinemas, concert halls and retail stores. With much of the country shut down, ERA’s members provided a welcome revenue stream for thousands of musicians, actors, directors and countless backroom staff.” More comment from Kevin Dersley, Co-Vice Chair, BASE / Managing Director, Elevation Sales who said: “Resilience and adaptability remain bywords for the transactional video category, a fact underlined by the innovations in digital distribution seen throughout 2020 as much as it is by the ability demonstrated by the disc market to weather a storm that has seen much of the retail estate either closed or focused on ensuring the supply chain of essential purchases. Amid all the conjecture as to how the entertainment industry as a whole will respond to ‘the new normal’, it remains clear from the performance of a diverse slate across diverse methods of consumption, that ready access to film and TV content for purchase or rental persists in being a priority for audiences appreciative of the fact that transactional video really does give them what they want when, and how, they want it.”
David Sidebottom, Principal Analyst, Entertainment, at Futuresource Consulting said: “2020 saw digital home video reach new heights, with digital sell-through and rental growth accelerating despite pandemic enforced movie delays. The strength of library content has been truly impressive and sustained throughout the year, even more notable given the continued proliferation of wider video streaming services. Despite the continuing challenging conditions and diverse release strategies, the increased digital rental and sell-through consumer base achieved in 2020 provides a strong bedrock for further market progression.” Craig Armer, Strategic Insight Director, Worldpanel Entertainment, said: “Amongst the many seismic changes in consumption habits that 2020 has seen, the most encouraging for Home Entertainment is the indication that subscription services and transactional formats can not only co-exist, but grow in tandem. For the first time in at least 8 years the number of buyers and renters of transactional formats has grown, helped by a complete resurgence in the popularity of VOD. Encouraging levels of return for a second purchase amongst new consumers suggests habits being formed that should continue into 2021.”
And final comment from physical market share leader in both value and volume terms, Universal, whose md Ian Foster said: “We are proud of Universal’s performance during this truly extraordinary year and thank all our retail partners for their support. Our category has once again demonstrated remarkable resilience and we look forward to bringing our strong slate of content to market this year.”
Meanwhile, we’ll have more figures next week, as well as on our website shortly, where we’ll be breaking down a whole bunch of year-end top 10s and running through The Year in Numbers. Keep an eye on our scurrilous and libellous Twitter feed for updates as to when it goes live. Oh, and if you fancy letting us know your best of the year, as well as your hopes and fears for the coming year. Yes, it’s our annual survey looking at the best and worst of the 12 months just gone, as well as looking ahead to the next year. Here are the all important questions – answer them and send via email to tim@theraygun.co.uk
Favourite three releases of the year:
Highlight of 2020:
Lowpoint of 2020:
Event of the year:
Biggest challenge in 2021:
What I’m most looking forward to in 2021:
We’ll be looking at the bestselling titles of 2020 on our website and here next week, but in the first Official Film Chart of 2021, Tenet is still leading the way, the Christopher Nolan-directed title selling more than double the units across digital and physical of its nearest rival. That title is a new entry from Disney with the much-delayed The New Mutants finally bowing into the home entertainment sector. The pre-December 25 seasonal glut is drying up, with Last Christmas and Love Actually the only Christmassy titles in the top 10 listing…
One of our favourite films of the past 12 months is getting a physical release on Monday January 11 courtesy of Dogwoof, and the release also marks the first title under a new sales deal too. The DVD and Blu-ray of LFF hit David Byrne's American Utopia (in partnership with Universal Pictures UK, and directed by Spike Lee) follows its digital release last December. The film's bow is also one of the company's first releases via Elevation, which is now handling physical sales. On the film and Dogwoof's new relationship with Elevation, here's head of home entertainment Daniel Green: "We couldn't have wished for a better title to lift the current gloom and toast our new working relationship with Kevin and the team at Elevation. It's certainly a career highlight to be releasing a Spike Lee joint, and David Byrne's American Utopia is just the optimistic, rousing tonic to kick things off with! Pre-orders have been outstanding to date and we look forward to a long and fruitful relationship with Elevation after so many wonderful years with the team at Network.” Further comment came from Elevation’s Kevin Dersley who said: "Having thoroughly enjoyed the brilliant output from Dogwoof as consumers, we are delighted to be working with Dan and the team. The Dogwoof catalogue blends quality, critically acclaimed content with commerciality - we look forward to driving this across our retail partners alongside the future content flow."
As ever, our industry is quick to seize on any anniversaries in the coming year, and one franchise marking a key birthday this year is Brit-spy action series The Avengers, with Steed and co celebrating their 60th anniversary. Studiocanal has this week announced a key event due to take place on January 29. The event, organised with ourscreen, offers 5,000 Avengers fans the chance to view episodes from the series online, and celebrate the event with special guests, Q&As and more appearing between the episodes. Fans will be able to join in and interact in real time using the oursceeen live chat bar. Commenting on the event, Studiocanal’s Alison Arber said: “This year marks the 60th anniversary of the cultural beacon of British TV history, The Avengers. To pay tribute to this momentous occasion we will be donning our Bowler hats and raising champagne glasses at a special anniversary event in association with virtual shared viewing platform OurScreen. Fans will be able to watch three key episodes with guests popping up in between talking about the show, the people that made it special and why it's still so loved across the world. Take a break from reality for a few hours and pop January 29 in your diary, it's guaranteed to go off with a bang bang.”
And finally, some New Year cheer from our pals at Obviously Creative. For the agency came up with an interesting initiative for the Christmas season, raising cash for charity and rather than sending stuff to clients, gave to good causes instead. Commenting on its work, the company’s Alex Carter said: "After a tumultuous 2020, OC wanted to ring in the new year with a dose of positivity. The consistent support of our clients enabled us to continue our charitable work, donating around £8k in support and services to our amazing charity partners, MediCinema and Action for Children, as well as to our own Thankful Hearts campaign, in aid of NHS Charities Together. At Christmas, instead of our usual gifts, we invited clients to allow us to donate on their behalf. We’re so proud of the response, resulting in an additional £3k for these deserving charities. Both causes are close to our hearts, with MediCinema bringing mood-boosting films to hospital patients, while Action for Children provides practical and emotional support to improve the lives of children. Despite uncertainty for the industry, it’s entertainment that helped us all through lockdown by transporting us beyond our sofas. We want to ensure that as an agency we are committed to the growth and adaptability that will allow us to continue supporting our entertainment clients, and meeting their needs no matter where the times take us. So, here’s to a brighter 2021…”
QUOTE OF THE WEEK
“Wonder Woman 1984 broke records and exceeded our expectations across all of our key viewing and subscriber metrics in its first 24 hours on the service and the interest and momentum we’re seeing indicates this will likely continue well beyond the weekend. During these very difficult times, it was nice to give families the option of enjoying this uplifting film at home where theater viewing wasn’t an option.”
Andy Forssell, executive vice president and general manager of Warner Media Direct-to-Consumer talking about the film’s debut on HBO Max, which said half of direct subscribers in the US watched the film on its debut…
“Congratulations to Patty Jenkins, Gal Gadot, Chuck Roven and the entire cast and crew who made ‘Wonder Woman 1984,’ allowing fans and film lovers to return to the thrilling experience of being at the movies. Audiences around the world where markets are open have been showing up to watch the next chapter in Diana Prince’s action-packed story.”
Warner Bros Domestic Distribution President Jeff Goldstein and International Distribution President Andrew Cripps in a joint statement on New Year’s Eve.
AT THE MOVIES
Another new year dawns and thoughts do, as they do in any January, to Lethal Weapon and the long-rumoured sequel. A Richard Donner interview in the Telegraph has kicked everything off again, for the director teased once more the much talked about and much delayed final outing for Mel Gibson and co. Seems he’s not concerned in the slightest that, by the time the film comes out, he’ll be in his early 90s, noting: ""This is the final one. It’s both my privilege and duty to put it to bed. It’s exciting, actually…"
Wonder Woman 3 is go. With the first film earning some $85 million at cinemas worldwide, with HBO Max revenue and more to come, the third film was somewhat inevitable despite the pandemic, and both star Gal Gadot and director Patty Jenkins are on board. Warner’s Tobey Emmerich said: "As fans around the world continue to embrace Diana Prince, driving the strong opening weekend performance of Wonder Woman 1984, we are excited to be able continue her story with our real life Wonder Women – Gal and Patty – who will return to conclude the long-planned theatrical trilogy."
TWEET OF THE WEEK
Follow us on www.twitter.com/theraygun…
TRAILERS OF THE WEEK
Much talked about…
Wanda, not Chuckle…
Due from Altitude…
After the premiere…
THE OBLIGATORY GDPR BIT
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