Irish video sales slump continues

By
Richard Cooper

February 24, 2011

IHS Screen Digest has updated 2010 Ireland video software sales data and forecasts in light of year end number released by the British Video Association (BVA).

According to the BVA's reporting of Official Chart Company (OCC) data consumer spending on physical video fell by 21.6% to €119.7m in 2010, in line with IHS Screen Digest forecasts. Contrary to previous years, average pricing remained relatively stable falling only 3.2%.

Spending on DVD fell to €10.9m ($15.0m) down 19.9% compared to 2009. Blu-ray disc has thus far failed to gain traction in the Irish market accounting for just 2.6% of consumer spending on physical video compared with 10% in the UK.

The Irish economic crisis in 2008 and the introduction of austerity measures in Ireland in 2009 have had a major impact on the Irish video market.

Home video consumption in Ireland has historically been dominated by the rental business and the proportion of spending accounted for by video rental remains far higher than in other European markets. The share of market accounted for by the sector has fallen in recent years from 39% in 2004 to 29% by 2010. However, this figure remains high when compared to the equivalent share of market accounted for by rental in the UK just 9%. Historically DVD average pricing was higher than that in the neighbouring UK and retail availability of DVD product relatively low. This largely prevented the commoditisation of the DVD in Ireland enabling it to remain an affordable luxury. However it is this status which has counted against home video in more austere times.

IHS Screen Digest Irish forecasts have been reviewed and extended to 2015. These forecasts may be revised further in light of economic forecasts from our sister company, IHS Global Insight. Subscribers will be notified of any changes through the usual channels.

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Countries: Ireland