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Digital Distribution Helps Make up for Declining Retail Sales

Tue Jan 03, 2012 at 10:30 AM ET
Tags: Digital Distribution, NPD Group, Steam, GameStop, Industry Trends (all tags)

In the first three quarters, alternate distribution methods run neck and neck with retail. In the fourth quarter, retail is still king.

Digital distribution has been picking up significantly thanks to the widespread adoption of smart phones. The iPhone, for example, gets people new to digital delivery used to the idea and encourages inexpensive games that can sell quite well. Those sales have helped to drive the game industry despite lagging retail numbers, but just how much is a mystery.

Tracking digital sales of games is tricky. On the PC side of things, Steam doesn't release sales numbers. Since that seems to be the game store of choice, figuring out just how well digital distribution is doing is folly. But that's just the PC side of things - trying to take into account iPhone games, Android games, social games like 'Farmville,' free to play games like 'League of Legends' and the rest makes things get very complicated very fast.

The NPD Group isn't great at tracking this sort of thing but they do make the effort. Unfortunately, they don't deliver that data in an entirely helpful way. Instead, things are split into retail and non-retail. Retail essentially means the sale of new games through traditional means - Best Buy, Walmart, Amazon, etc. Non-retail adds in used game sales from GameStop and others as well as digital delivery.

Non-retail sales are on the rise and it's not all GameStop. Taking the company's sales numbers out of the equation results in a definite increase in non-traditional sales. It's impossible to break that down further at this point, but things are looking good for the digital market.

Source: Gamasutra

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Digital Distribution Helps Make up for Declining Retail Sales

Tue Jan 03, 2012 at 10:30 AM ET
Tags: Digital Distribution, NPD Group, Steam, GameStop, Industry Trends (all tags)

In the first three quarters, alternate distribution methods run neck and neck with retail. In the fourth quarter, retail is still king.

Digital distribution has been picking up significantly thanks to the widespread adoption of smart phones. The iPhone, for example, gets people new to digital delivery used to the idea and encourages inexpensive games that can sell quite well. Those sales have helped to drive the game industry despite lagging retail numbers, but just how much is a mystery.

Tracking digital sales of games is tricky. On the PC side of things, Steam doesn't release sales numbers. Since that seems to be the game store of choice, figuring out just how well digital distribution is doing is folly. But that's just the PC side of things - trying to take into account iPhone games, Android games, social games like 'Farmville,' free to play games like 'League of Legends' and the rest makes things get very complicated very fast.

The NPD Group isn't great at tracking this sort of thing but they do make the effort. Unfortunately, they don't deliver that data in an entirely helpful way. Instead, things are split into retail and non-retail. Retail essentially means the sale of new games through traditional means - Best Buy, Walmart, Amazon, etc. Non-retail adds in used game sales from GameStop and others as well as digital delivery.

Non-retail sales are on the rise and it's not all GameStop. Taking the company's sales numbers out of the equation results in a definite increase in non-traditional sales. It's impossible to break that down further at this point, but things are looking good for the digital market.

Source: Gamasutra

See what people are saying about this story in our forums area, or check out other recent discussions.


Digital Sales Reach a High on Christmas Day

Tue Jan 03, 2012 at 10:00 AM ET
Tags: Digital Distribution, Industry Trends (all tags)

An impressive 20 percent of all sales on Christmas Day were for digital content.

Who says companies can't make some money on a day where practically every business is closed? Digital distribution is changing the way Christmas day works in terms of consumer spending and this year shows just how big that change can be.

Sales of digitally delivered content like movies, games, books and apps made up 2.8 percent of holiday spending this year. It's a decent chunk and not something to be ignored but it's not huge. By comparison, 20 percent of all purchases on Christmas Day were for digital content.

Internet based sales as a whole were up this year too. eCommerce retailers pulled in over $35 billion - a $5 billion increase from last year.

Source: Home Media MagazineSee what people are saying about this story in our forums area, or check out other recent discussions.


The New iTunes Edition of Avatar Brings Special Features to Digital Distribution

Tue Dec 20, 2011 at 12:00 PM ET
Tags: Avatar, iTunes, Digital Distribution (all tags)

One of the big things missing from movies purchased online is coming to iTunes

Buying movies online is convenient, quick and - sometimes anyway - cheaper. But you're giving up a few things when buying digital copies, not the least of which is special features. It may not matter for some flicks, but big budget fan favorites require them.

The latest release of 'Avatar' brings some of those special features to iTunes. You'll be able to play around with 17 different scenes and see the motion capture and various stages of visual effects. You'll be able to split the screen up or watch picture-in-picture.

The 'iTunes Extras Special edition' also includes James Cameron's scriptment - a mix between a script and a treatment - a massive image gallery and plenty more.

You can pick up the standard definition version for $14.99 while the high definition 'Avatar' will run you $19.99.

Source: Engadget

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PlayStation Vita Games Will be Cheaper to Download than at Retail

Tue Dec 06, 2011 at 09:30 AM ET
Tags: PlayStation Vita, Vita Memory Cards, Digital Distribution (all tags)

Sony's expensive memory cards are a bummer, but games purchased digitally will run between 20% and 40% cheaper.

Last week we found out that Sony's proprietary Vita memory cards would be prohibitively expensive. And even did a bit of doomsaying on the subject. Happily, it turns out that there's more to the story.

PlayStation Vita memory cards may be expensive, but the games sold for the Vita will be cheaper when purchased as a download than as a physical copy at retail. Eliminating the need for packaging and shipping spurs cheaper prices - it just makes sense.

The price difference hasn't been nailed down exactly yet. In Japan, the difference is around 20%, but according to a source that spoke to Joystiq, we could be seeing games at a 40% discount.

Source: Joystiq

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PlayStation Vita Games Will be Cheaper to Download than at Retail

Tue Dec 06, 2011 at 09:30 AM ET
Tags: PlayStation Vita, Vita Memory Cards, Digital Distribution (all tags)

Sony's expensive memory cards are a bummer, but games purchased digitally will run between 20% and 40% cheaper.

Last week we found out that Sony's proprietary Vita memory cards would be prohibitively expensive. And even did a bit of doomsaying on the subject. Happily, it turns out that there's more to the story.

PlayStation Vita memory cards may be expensive, but the games sold for the Vita will be cheaper when purchased as a download than as a physical copy at retail. Eliminating the need for packaging and shipping spurs cheaper prices - it just makes sense.

The price difference hasn't been nailed down exactly yet. In Japan, the difference is around 20%, but according to a source that spoke to Joystiq, we could be seeing games at a 40% discount.

Source: Joystiq

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Vudu-To-Go Lets You Download Movies to Watch Later

Mon Nov 21, 2011 at 12:00 PM ET
Tags: VUDU, Digital Distribution (all tags)

The company has announced a few deals as well, like $5 credit when you buy a DVD or Blu-ray at Walmart.

The folks at Vudu tend to be held up as the one group that's doing digital distribution right - at least when it comes to video and audio quality. Today they've stepped over another significant hurdle in the online video world.

If you bought a movie from Vudu, you can now download that movie to your computer for future watching. That means you don't have to be online to watch the movie you bought online - a really nice step forward.

The downside of course, is that since it's a PC version you'll be stuck with standard definition. On the plus side, if the format is right this could be transferrable to smartphones, game systems and tablets.

The company announced a few cool deals too. If you buy select films from Walmart you'll be getting a $5 Vudu credit or a free Vudu rental from a list of selected titles.

To download, simply go to VUDU, head over to your purchased movies and hit "Download"


Today VUDU launched VUDU-To-Go, a new feature that allows customers to download purchased movies and television shows to their computers and watch them later. Any purchased title within VUDU’s catalog of 40,000 blockbusters, Hollywood classics, independent films, and TV shows can now be downloaded to your PC or Mac to watch at a later time.

In addition to VUDU streaming, now customers can also enjoy their VUDU movie libraries on their computer whenever they want – and without an Internet connection. Perfect for plane trips, car rides and more, the new feature allows you to take your VUDU entertainment with you.

To download your purchased VUDU content, simply visit www.vudu.com/movies, navigate to purchased movies and television shows and click the “Download” button. VUDU movie purchases start at $4.99 and TV show purchases start at $1.99 per episode and start at $7.99 –for a complete season. There is no additional download fee.

Also new and in time for the holidays, VUDU has special offers on more than 25 DVDs and Blu-ray titles at Walmart stores. Specific offers include:

$5 Credit: VUDU offers a $5 credit on select DVD or Blu-ray purchases at Walmart. Beginning on Dec. 2, families purchasing The Smurfs at Walmart stores will receive a $5 VUDU credit. Additional movies with a $5 VUDU credit include Megamind (through Nov. 30), No Strings Attached (through Nov. 30), Ghostbusters, Spiderman, Men in Black and more.

Digital E-copy: Families who purchase a variety of Blu-ray Discs or DVDs including When Harry Met Sally (through Nov. 30), Scream 4, and Stake Land will also receive a digital copy of the movie.

BOGO: VUDU has a “Buy One, Get One” offer for families who purchase Despicable Me, Crazy Heart or any of the X-Men movies (including X-Men I, X-Men II, X-Men III, X-Men Wolverine). After purchasing one of these DVDs or Blu-ray Discs at Walmart, customers can choose from a selection of free VUDU rentals.

In addition, select HP PCs and laptops at Walmart stores will provide direct access to VUDU on the home screen. Customers simply click on the VUDU icon to be connected directly to VUDU.com where they can stream more than 40,000 blockbusters, Hollywood classics, independent films and TV episodes.

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VUDU is Now Renting and Selling TV Shows

Thu May 05, 2011 at 10:00 AM ET
Tags: VUDU, Digital Distribution, Industry Trends (all tags)

Unfortunately, many of the shows are only available in standard definition.

If you're an avid VUDU user, you'll be happy to know that the service is now offering television shows as part of its selection. You might be a bit unhappy, though, when you find out that many of the shows are only offered in standard definition.

The catalog update brings titles like 'Modern Family,' 'Glee,' 'Weeds' and AMC's 'The Walking Dead,' based on the comic book series of the same name.

The VUDU interface has been updated to make picking up shows simpler. You can sort by individual network or search by show as normal. They've also enabled a new feature that allows you to buy entire seasons at once.

The folks at Engadget did a little comparison shopping and recommend that you do the same. While 'The Walking Dead' is actually a really good deal, buying season six of 'Weeds' will set you back more than the Blu-ray.

Source: VUDU Blog

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YouTube Channels and Original Content on the Way

Fri Apr 08, 2011 at 12:00 PM ET
Tags: YouTube, Digital Distribution, Industry Trends (all tags)

Web exclusive programming is in the works for YouTube. The company helps to compete with television for viewers.

YouTube has proven itself to be the most popular, if not necessarily the best, site for watching short video clips online. Whether it's a music video from your favorite artist or from an internet sensation that you're secretly addicted to, YouTube has it.

The site isn't satisfied with just being the place where you goof off at work though. YouTube wants to compete directly with television for your time and is spending upwards of $100 million dollars to do it.

According to the Wall Street Journal, the company is going to be producing original programming, exclusive to YouTube. They'll also be revamping the site to include channels that help organize content.

There's no word on when this will all roll out, but when it does - especially considering the amount of Blu-ray Players, TVs and set-top boxes that include YouTube - it could be huge.

Source: Wall

Street Journal (via Engadget

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Discs Will Dominate Until At Least 2015, Says Study

Fri Apr 08, 2011 at 10:00 AM ET
Tags: Blu-ray Discs, DVDs, Streaming, Digital Distribution, Industry Trends (all tags)

The lowering price point of rentals and lack of broadband across the country means physical media is sticking around for a while.

Digital distribution gets a lot of love, and though Netflix has gained quite a bit of popularity, a recent study by the Digital Entertainment Group (DEG) says that digital distribution isn't taking over any time soon.

Part of the reason is that there's no clear point of transition. When DVDs came out, you only really had one choice - get a DVD player. With digital distribution, you have a number of choices in both hardware and sources. It's a much more complex environment.

The study also cited Redbox as a big help in keeping discs alive. Though studios don't always see eye to eye with the rental company, it's the low prices from Redbox that are driving disc rentals.

Another concern, of course, is 3D. "3D content requires about twice the bandwidth as conventional 2D," says the study, adding that most homes won't have access to that kind of bandwidth in the near future.

Source: Home Media Magazine

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