DVD sales have been falling since 2007, but the Digital Entertainment Group (DEG) has reported that sales in the US have fallen by a staggering 19% ($2.2bn) in the first quarter of this year. High-street rental plunged by 36% ($440m).

Sell-through was down 18% for the quarter, as anticipated, since there were four tentpoles accounting for $1 billion of box office released on Blu-ray and DVD in first quarter 2010, but no such equivalent for first quarter 2011.

In Blu-ray Disc software sales, consumer spending was up nearly 10% over the same period 2010. Blu-ray 3D software is also beginning to show signs of material growth, with anticipated retail sales of more than $100 million for the year.

Digital distribution provided additional growth for the industry with electronic sell-through spending up nearly 11% and consumer spend on VOD up 9% in the quarter. In total, digital movie transactions were up close to 10% over the same period last year.

Additionally, Blu-ray Disc hardware increased, with sales (inclusive of BD set-tops, PS3s and Home Theaters) up more than 13% over first quarter 2010. This brings total household penetration of all Blu-ray compatible devices to nearly 30 million US homes.

Further, nearly seven million HDTVs were sold to US consumers in the first quarter 2011, up 11% over the first quarter 2010. Some 64.5 million US households are equipped with a HDTV set.

Due in part to a 25% reduction in box-office revenue of the home entertainment new release slate for the first quarter of 2011, US home entertainment spending in the period was down 9.8%, according to DEG

Story filed 11.05.11