Bva Yearbook 2015 Yearbook Bva The

BVA YB15Full Cover 19/05/2015 14:10 Page 1

B VA Y E A R B O O K

2 0 1 5 THE BVA YEARBOOK 2015 YEARBOOK BVA THE

PRICE: £599

iPad and PDF copies available for £999 from www.bva.org.uk 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

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FEATURE Chairman’s introduction

by Robert Price Chairman, British Video Association

When I stepped into the exciting leadership strongly co-exist will be one of the BVA’s key role of BVA Chairman last year it was evident goals this year. As a trade body, we’re adapting that the home entertainment arena is in one and changing to ensure we collectively lead the of the greatest periods of evolution it has ever industry and maintain our resilience in the long seen. term. It’s more important than ever that we collaborate amongst ourselves and work closely As the mix between ownership and rental shifts, with retail partners to ensure we can empower the gap between physical and digital narrows and each other and create prominence both in and customer demand for greater flexibility and out of the entertainment aisles. versatility reach an all-time high, our category isn’t just embracing change, we’re pioneering it. Ultimately, the vitality of our business remains exceptionally strong because people love video. We are an industry worth over £2bn. That’s £6m We must never lose sight of the emotional through the checkouts, in store and online, every connection people have with our products, those day. Last year, more than 143 million DVDs and connections last a lifetime because they are so Blu-rays were sold and more than 24 million deep – no wonder people go out of their way to people bought one of our products to own. These seek out and own our content. From the frazzled are incredible statistics. mum I trolley-bumped in Tesco buying Frozen for As a sector we reinvent and refresh ourselves her daughter to the film student I shared an every single week with titles that thrill and X-Men chat over the shelves with in HMV, it is a engage all ages. We operate in such a vibrant privilege and an inspiration to be a part of such and dynamic marketplace that securing a an exciting sector. landscape where all formats can successfully and

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CEO’s FOREwORd Opportunity is all around

by Liz Bales CEO, British Video Association

Since its first publication in 1994 accordingly. The result is unparalleled choice and the BVA Yearbook has provided the value for video consumers today. definitive analysis of the video This latest Yearbook reveals the extent to which consumers are valuing the variety on offer. One category. In the last 12 months week they will buy a TV box-set; the next rent a that category has evolved movie on demand, while also subscribing to a significantly, creating some tough streaming service. They are flexing our offer to meet their changing needs. new challenges for our members and partners to contend with. The concept of ownership remains central to purchase decisions, with buy-to-own accounting However, the changing landscape has also for two thirds of consumer spending – yet there brought with it new possibilities. What were just has also been a proliferation in video-on-demand the tentative shoots of new services 12 months and digital formats now represent a 37% market ago are today flourishing within a much more share. vibrant and varied video ecosystem than we Similarly, we see variety in the type of content might ever have imagined. Last year’s content our customers are choosing. The very latest platforms have become this year’s content blockbusters will always be popular – but more producers. Opportunity is all around. than half of disc sales pertain to profitable From distribution to retail, the catalyst behind all Catalogue product, often bought on impulse, of this change remains consistent: our industry’s revealing the value and importance of engaging collective commitment to putting our customers point of sale. first. As technological advances offer new This year we have refreshed the format of the viewing opportunities for consumers, their habits Yearbook to provide the clearest picture possible change – and we continue to diversify our offer of this diverse, and changing, category. It will be

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CEO’s FOREwORd

supplemented across the year with category · Education: We will help consumers highlights and forecasts providing our members understand how to maximise the value of with multiple data points and more regular our content; help UK and EU policymakers market analysis. and stakeholders to understand the drivers and economics of our category Within this evolving video landscape, the BVA and ensure our members stay informed of stands steadfast by the same high standards of ever-evolving issues. service we always have; constantly challenging ourselves to adapt and improve that service to help our members keep pace with new Underpinning all of this the BVA remains opportunities. Across 2015 our focus will be: committed to sharing knowledge across the category. It’s a commitment that will become ever more important as our membership and · Industry intelligence: We are delivering partner network continues to grow and diversify valuable industry intelligence that in line with the shifting landscape. benefits members’ businesses and underpins our sector’s reputation, By bringing together representatives from constantly questioning what the ‘best’ traditional video formats with the voices of new, data looks like and helping our suppliers digital business models and combining proven to enhance their insights accordingly. experience with new thinking, the BVA will continue to facilitate productive and cost- · Communications and marketing: We will effective collaboration across every corner of the promote and champion our category, both video category. to retailers and their customers, adapting our approaches as the category diversifies to ensure our activities feel fresh and remain relevant.

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MARKET OVERVIEw Video worth over £6 million per day to UK retailers

The UK’s video sector is worth in excess of £2.2 “Every month we’ll buy billion to the UK economy which equates to more than £6 million per day, every day, going through something new.” 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 24m share of the market with consumers spending twice as much on buying videos to own than on rental charges and subscription fees combined. 24m people bought a video to own To hold: Consumers like to hold a physical copy in 2014 – the same as in 2013. 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. “They (DVDs) are good value because we share To own To rent Total them around, my son will On disc 58% 5% 63% borrow some or we’ll On digital 7% 30%† 37% Total 65% 35% 100% borrow from him.”

†Includes both Video-on-Demand and subscription services such as Netflix and Amazon Prime.

“My husband works .84 away during the week so £51£51.03.03 £19 when I go to bed I watch films I love, like Pride and Prejudice, over and Average spend per Average spend per shopper shopper on video discs on Video-on-demand rentals over (on DVD).” is £51.03 per year. is £19.84 per year.

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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 The Lego Movie was 3D, Blu-ray, DVD and digital the top selling UV- enabled disc in 2014. It copy.” 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.

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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 “I was doing another task on my Video is the gift that just keeps on giving. Year iPad when I realised I'd much after year a consistent one in five Blu-ray Discs rather watch an episode or two of are bought as a present and for DVDs this Come Fly With Me, another increases to one in three, showing the continued value that givers and receivers place on videos comedy. These were digitally as a gift. The wide range of choice is a key factor bought and downloaded a couple with over 78,000 different titles selling at least of years ago.” one copy during 2014 whilst value for money is clearly another motivator.

Planned purchase Whilst 55% of Blu-ray sales are planned purchases, these sales account for 63% of Blu- ray 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.

“I saw a cardboard In 2014, nine video distributors pooled their cut-out of resources behind a campaign called ‘Bring Your Christmas Stocking To Life With Blu-rays and Mrs Brown DVDs’. The campaign, developed by Universal Pictures, showcased 65 different video titles on in Asda to TV, press, outdoor and online over four weeks, promote the with ten leading retailers participating with shelf space and point-of-purchase material. Mrs Brown DVD.”

All consumer comments are from a survey carried out by The Nursery Research & Planning.

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MARKET OVERVIEw

Total video market £2.18bn To own To rent

66% 34%

£1,432m £751m 12%

Digital 14% £168m Disc 35% Rental tVoD £106m £264m

51% 88% sVoD £381m DVD and Blu-ray Discs £1,264m

Blu-ray Discs £231m

Video market £ms and % digital

£3026 £2776 £2803 £2592 £2646 £2676 £2447 £2451 £2345 £2284 £2193 £2212 £2183 £1959 37%

28% 20%

10% 12% 6% 8% 2% 3% 3% 3% 4% 0% 1%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 % digital 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

£2,317 £2,256 £2,244 £2,252 £2,229 £2,012 £1,829 £1,909 £1,896

£1,642 £1,568

£1,417 £1,432

263 £1,100 251 251 234 229 236 £896 222 221 208 194 £784 £878 181 £721 £637 169 167 £733 135 114 100 96 87 79 66 73

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011201220132014

Volume (million): VHS DVD Blu-ray Digital retail

Value (£million) 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 Demand for video ownership was buoyant in 2014 with total consumer spend at £2.18 billion, compared to £2.21 billion in 2013*, Disc Ownership Market: a dip of just 1%. Buying videos to own and keep is overwhelmingly the preferred Sold: 143m DVDs choice for consumers representing two thirds of all video spend. and Blu-ray Discs Total retail sales of physical discs were £1.26bn in 2014, slipping 9% Average sales price: £8.84 year on year in still relatively tough economic conditions. Total consumer spend: DVDs remain the firm favourite accounting for 72% of the buy-to- £1.26bn own segment and generating £1.033 billion in consumer spending. Blu-ray, at £231m, accounted for a further 16% of ownership. Digital Ownership Market: Physical discs share remains more than robust at 88% of all video Sold: 24m digital copies ownership.

Average sales price: £6.96 The balance, 12%, is digital ownership where consumers spent c£168m, up c29%. Total consumer spend: £168m

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Consumer behaviour OWNERSHIP

Proportion of population who buy to own Average number of purchases in year

Discs and digital 49.1% Discs and digital 7.0 downloads 49.6% downloads 7.2 DVD and DVD and 41.9% 6.1 Blu-ray Discs Blu-ray Discs combined 45.0% combined 6.5

8.6% 3.5 Blu-ray Discs Blu-ray Discs 9.4% 3.4

Digital 5.7% Digital 3.4 downloads 3.0% downloads 5.3

40.5% 8.6 Visit cinema Visit cinema 36.4% 10

2014 2013 Average spend per buyer

DVD and Blu-ray Discs £51.03 combined £51.73 49% of GB population bought a video £41.37 to own in 2014, either on disc or as a Blu-ray Discs digital download, equivalent to some £39.55 24.4 million people, some 4 million Digital £27.05 more than visited the cinema. Most downloads £41.26 popular format to own a video is on DVD with 40% of population buying at Cinema £60.76 £68.82 least one in 2014.

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% 44%

% of spend on DVDs 46% 54%

Blu-ray

% of Blu-ray Disc sales volume 45% 55%

% of spend on Blu-ray Discs 37% 63%

Impulse Planned Source: Kantar Worldpanel. Some figures may have been revised since previous publication.

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OWNERSHIP Consumer behaviour

Age Gender Social class

63% of DVD buyers buy 1-4 DVDs per year and represent 24% of market value DVD 57% 53% 60% 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 Blu-ray 53% 74% 60% 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 Digital 60% 72% 72% 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 21% Warner 14.1%

HMV 20% Walt Disney 13.7% Tesco 18% 20th Century Fox 12.9% Universal Pictures 12.4% ASDA 13% Elevation Sales 7.3% Sainsbury’s 10% Entertainment One 7.1% Morrisons 4% Sony Pictures 6.6% Play 3% BBC Worldwide 5.3% Other 12% Paramount 4.9% Channel 4 1.8% Other 13.1%

Source: Official Charts Company

2014 DVD and Blu-ray top 10 Volume

Pos Title Company 1 Frozen Walt Disney The Hobbit – The Desolation Of 2 Warner Smaug The Hunger Games – 3 Lionsgate/Elevation Sales Catching Fire* 4 The Lego Movie Warner 6 5 Mrs Brown’s Boys – D’Movie Universal Pictures discs per 6 Guardians Of The Galaxy Walt Disney annum 7 The Inbetweeners Movie - 2* Channel 4 8 Gravity Warner The typical DVD buyer 9 The Wolf Of Wall Street Universal Pictures is male, 25-54, C1, C2. 10 Thor – The Dark World* Walt Disney

*Includes box-sets. Source: Official Charts Company

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Digital retail OWNERSHIP

Retail sales – digital £168

£130

£99 £80 24.1 £71

19.2 £35 15.5 13.6 £17 12.2 £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 Digital retail market shares - 2014 Value % Value %

iTunes 79% iTunes 57%

Blinkbox 8% Blinkbox 8%

Google Play 5% Google Play 7% Store 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 3 by TalkTalk from Tesco. copies per annum Superfast broadband is in reach of 82% of households and is forecast to be 95% within The typical digital buyer two years which will no doubt help the market. is male, 25-34, ABC1.

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OWNERSHIP Video ownership – DVD

Retail sales – DVD Company shares 2014 DVD Value £2,227 £2,164 Warner 13.4% Walt Disney 13.3% £1,839 £1,639 Universal Pictures 13.0% £1,526 248 253 20th Century Fox 12.6% 235 £1,314 Entertainment One 7.1% 210 £1,186 192 £1,033 Elevation Sales 6.8% 162 Sony Pictures 6.6% 143 125 BBC Worldwide 6.1% Paramount 4.7% Channel 4 2.0% Other 14.4%

2007 2008 2009 2010 2011 2012 2013 2014

Volume (million) Value (million)

Factfile DVD Market: % Sold: 125.5m 31 Average sales price: £8.23

Total consumer spend: 1/3 of DVDs £1.033bn are bought as gifts.

DVDs remain the firm favourite accounting for 72% of the buy-to-own segment and generating £1.033 billion 2014 DVD top 10 in consumer spending. Volume Pos Title Company 1 Frozen Walt Disney The Hobbit – The Desolation Of 2 Warner Smaug The Hunger Games – Lionsgate/ 3 Catching Fire* Elevation Sales 4 Mrs Brown’s Boys – D’Movie Universal Pictures 5 The Lego Movie Warner 6 The Inbetweeners Movie - 2* Channel 4 DVD 7 The Wolf Of Wall Street Universal Pictures 8 Guardians Of The Galaxy Walt Disney 9 Maleficent Walt Disney 10 Gravity Warner

*Includes box-sets. Source: Official Charts Company

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Video ownership – Blu-ray OWNERSHIP

Retail sales – Blu-ray

£252 £223 £229 £231 £199

18.8 £135 17.5 16.7 15.3 £65 13.0 8.4 £16 3.7 0.8

2007 2008 2009 2010 20112012 2013 2014

Volume (million) 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% 2014 Blu-ray top 10 Paramount 5.9% Volume EIV 2.3% Pos Title Company BBC Worldwide 1.7% The Hobbit – The Desolation Of 1 Warner Other 6.9% Smaug 2 Frozen Walt Disney 3 Gravity Warner 4 Guardians Of The Galaxy Walt Disney The Hunger Games – Lionsgate/ 5 Catching Fire* Elevation Sales 6 Thor - The Dark World* Walt Disney Factfile Captain America - The Winter 7 Walt Disney Soldier* Disc Ownership Market: 8 X-Men - Days Of Future Past* 20th Century Fox Blu-ray Discs: Transformers - Age Of 9 Paramount Extinction* Sold: 17.5m 10 The Amazing Spider-Man 2* Sony Pictures

*Includes box-sets. Average sales price: £13.20 Source: Official Charts Company Total consumer spend: £231m

Blu-ray, at £231m, accounted for 16% of ownership.

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OWNERSHIP Video ownership – DVD and Blu-ray – seasonality

Retail seasonality by month - 2014

£12.19 £11.90 £12.16 £12.10 £11.90 £11.36 £11.43 £11.22 £11.22 £11.28 £10.99 £11.08

£8.47 £7.71 £7.31 £7.10 £7.51 £7.19 £7.20 £7.34 £6.70 £6.76 £7.17 £6.93 23% 19% 10% 10% 9% 9% 8% 8% 8% 7% 7% 7% 7% 7% 7% 7% 6% 6% 6% 6% 6% 5% 5% 5%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec New Release volume New Release average sale price Catalogue volume Catalogue average sale price

Factfile Q4 accounted for 36% of sales in 2014, down 20% of all video disc sales from 39% in 2013 and a peak of 42% in 2012. are in December, more than Average sales prices in Q4 were higher than double any other month. the rest of the year with DVDs attracting a Average sales prices in 7% premium with 5% on Blu-ray Discs. December were £1.21 more per disc than the average of 38% of New Release sales in 2014 were in Q4, the other eleven months. showing the importance of the season to fresh content. % Share of sales in December

Live comedy – 61%

Music – 32%

TV – 26% Film – 19% Children’s - 18% 24% 20% 20% 36% Sport, health & fitness – 14% Q1 Q2 Q3 Q4

Source: Official Charts Company

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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 Sales to Week 13*: 2m Cumulative disc sales to year end Month One sales: 1.5m

3949k 1500k

2970k 2646k 2272k 2375k 2138k 1983k 979k 1747k 1500k

271k 324k 247k 236k 155k 134k 103k Apr May Jun Jul Aug Sep Oct Nov Dec 2014 Monthly sales Cumulative sales

*After 13 weeks a title is categorised as Catalogue and no longer New Release. Source: Official Charts Company

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OWNERSHIP Video ownership – DVD and Blu-ray – new release

2014 video top 10 - new release Company shares – new release 2014 Volume Value

Pos Title Company 14.5% 20th Century Fox 1 Frozen Walt Disney 12.6% The Hobbit – The Desolation Of 2 Warner 14.2% Smaug Universal Pictures 3 Mrs Brown’s Boys – D’Movie Universal Pictures 8.3% 4 Guardians Of The Galaxy Walt Disney 12.5% Warner 5 *The Inbetweeners Movie - 2 Channel 4 21.9% *The Hunger Games – 6 Lionsgate/Elevation Sales 11.8% Catching Fire Walt Disney 16.1% 7 The Lego Movie Warner 8.9% 8 *X-Men – Days Of Future Past 20th Century Fox Entertainment One 9 Gravity Warner 9.4% 10 Maleficent Walt Disney 8.0% Elevation Sales *Box-sets included. 10.4%

5.5% Sony Pictures 6.4%

4.8% BBC Worldwide 1.6%

4.0% Paramount 5.7%

3.1% Factfile Channel 4 1.5% New Release represents 44% of physical market value DVD Blu-ray Disc

Total consumer spend Source: Official Charts Company on New Release: £559m

77% DVD, 23% Blu-ray

Sold: 47.9m copies New Release rankings by title and distributor Average DVD sales price: vary with the rankings for all video across the £10.85 year. New Release is defined as any sale within the first 13 weeks of the release date. Average Blu-ray sales price: £15.64 Half of all sales of New Release titles are made within the first week after release. 67% of New Release TV genre commands the highest average sales volume is Film price at £19.87. 49% of New Release sales are in Week One

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Video ownership – DVD and Blu-ray - catalogue OWNERSHIP

2014 video top 10 - catalogue Company shares – catalogue 2014 Volume Value

Pos Title Company 14.5% Walt Disney 1 Frozen Walt Disney 14.7% The Hobbit – The Desolation Of 2 Warner 13.8% Smaug Warner Home Video 3 The Little Mermaid Walt Disney 20.9% The Hobbit – An Unexpected 12.2% 4 Warner Universal Pictures Journey 11.1% 5 The Jungle Book Walt Disney 11.3% 6 Despicable Me 2 Universal Pictures 20th Century Fox HE 15.4% 7 The Wolf Of Wall Street Universal Pictures 7.5% Sony Pictures HE 8 Sleeping Beauty Walt Disney 6.5% 9 The Hunger Games Lionsgate/Elevation Sales 7.0% 10 Rio 20th Century Fox BBC Worldwide 1.8%

6.0% Elevation Sales 7.6%

Factfile 5.7% Entertainment One 4.4%

95m Catalogue video 5.3% Paramount Home Ent discs sold, representing 6.2% 67% of total physical 2.2% FremantleMedia market 0.7%

Total consumer spend on Catalogue: DVD Blu-ray Disc

£705m Source: Official Charts Company 85% DVD, 15% Blu-ray

Average DVD sales price: £7.01

Average Blu-ray Catalogue is defined as any sale more than 13 sales price: £11.13 weeks after release date. This means the chart includes titles released in 2013, or before, and 57% of volume is Film excludes any titles released in Q4 of 2014 as they would still be regarded as New Release. Disney increased share from The Hobbit – An Unexpected Journey, The Jungle 10.7% to 14.5% 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 55% price at £14.68. C A E T A L O G U

55% of all disc sales are for Catalogue product.

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OWNERSHIP Film – DVD and Blu-ray

2014 video top 10 - film on DVD and Blu-ray Company shares – film 2014 Volume Value

Pos Title Company 20th Century Fox 14.7% The Hobbit – The Desolation Of 1 Warner Warner 14.5% Smaug *The Hunger Games – Universal Pictures 12.8% 2 Lionsgate/Elevation Sales Catching Fire Elevation Sales 12.0% 3 Mrs Brown’s Boys – D’Movie Universal Pictures Entertainment One 10.4% 4 Guardians Of The Galaxy Walt Disney Walt Disney 8.5% 5 *The Inbetweeners Movie - 2 Channel 4 Sony Pictures 7.2% 6 Gravity Warner Paramount 6.2% 7 The Wolf Of Wall Street Universal Pictures 8 *X-Men – Days Of Future Past 20th Century Fox EIV 3.1% 9 *Thor – The Dark World Walt Disney Channel 4 1.8% 10 Maleficent Walt Disney

*Box-sets included.

Factfile 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 Sold: 86.8m copies 10m copies between them with the top 3 films each selling more than 1m copies each. 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 is Catalogue Action/adventure (23%), comedy (21%), drama (16%) and sci-fi (13%) are the most popular sub-genres within Film whilst sci-fi 52% of sales value commands a 25% premium over the average selling prices of films is New Release with action/adventure at 16%. Family titles sell at 20% below the average of other Film titles.

Company shares – film on Blu-ray 2014 Company shares – film on DVD 2014 Value Value

Warner 20.3% 20th Century Fox 14.6%

20th Century Fox 15.1% Universal Pictures 13.6%

Elevation Sales 11.9% Warner 12.5%

Walt Disney 11.5% Elevation Sales 12.1%

Universal Pictures 10.2% Walt Disney 7.5%

Factfile Factfile

Sold: 14m copies 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 Film makes up 58% of all Blu-ray Discs sold by volume 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

OWNERSHIP Children’s – DVD and Blu-ray

2014 video top 10 - children’s animated film Company shares – children’s animated film 2014 Volume Value

Pos Title Company Walt Disney 58.7% 1 Frozen Walt Disney 20th Century Fox 15.6%

2 The Lego Movie Warner Warner 8.5% 3 *How To Train Your Dragon 2 20th Century Fox Universal Pictures 6.4% 4 *Despicable Me 2 Universal Pictures Sony Pictures 3.5% 5 The Croods 20th Century Fox Paramount 2.3% *Cloudy With A Chance Of 6 Sony Pictures Entertainment One 1.9% Meatballs 2 Elevation Sales 1.5% 7 *The Little Mermaid Walt Disney 8 *Rio 2 20th Century Fox 9 Turbo 20th Century Fox 10 *Monsters University Walt Disney *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 best- selling video this decade with sales of over Frozen accounted for 1:5 of 4m copies on DVD and Blu-ray propelling all copies sold 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.

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Children’s – DVD and Blu-ray OWNERSHIP

2014 video top 5 - pre-school Company shares – pre-school 2014 Volume Value

Pos Title Company Entertainment One 29.4% Thomas And Friends – Tale Of 1 Hit Entertainment The Brave HiT Entertainment 27.3% Peppa Pig – Fire Engine And BBC Worldwide 10.5% 2 Entertainment One Other Stories Universal Pictures 8.0% 3 Peppa Pig – Princess Peppa Entertainment One Walt Disney 7.2% 4 Peppa Pig – Peppa’s Circus Entertainment One Abbey Home Media 6.2% Peppa Pig – The Holiday And 5 Entertainment One Other Stories Elevation Sales 3.3%

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 Company 1 Lego Batman Warner 2 Toy Story Of Terror Walt Disney Dragons – Riders Of Berk Part 3 20th Century Fox 2 Monster High – Frights Camera 4 Universal Pictures Action 5 Scooby Doo Meets Batman Warner

BVA Volume Sales. *Box-sets included.

Company shares – school age 2014 Value

Warner 24.9% Factfile Universal Pictures 21.9% Walt Disney 20.4%

20th Century Fox 8m copies sold 7.2% Paramount 3.5%

84% Catalogue FremantleMedia 2.9%

2.9% 16% New Release Abbey Home Media Sony Pictures 2.8%

Consumer spending £41.9m Entertainment One 2.8%

Elevation Sales 2.7%

Source: Official Charts Company

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OWNERSHIP TV – DVD and Blu-ray

2014 video top 10 - TV Company shares – TV 2014 Volume Value

Pos Title Company Warner 21.5% 1 *Game Of Thrones – Season 3 Warner BBC Worldwide 18.4% 2 *Breaking Bad – Final Season Sony Pictures 20th Century Fox 11.1% 3 *Sherlock – Season 3 BBC Worldwide Universal Pictures 10.1% 4 Top Gear – Perfect Road Trip 2 BBC Worldwide Sony Pictures 8.5% 5 *The Big Bang Theory – Season 7 Warner 4.8% 6 Breaking Bad – Seasons 1-3 Sony Pictures Paramount 7 Mrs Brown’s Boys – Seasons 1-3 Universal Pictures FremantleMedia 3.7% 8 Breaking Bad – Season 5 Sony Pictures Entertainment One 3.3% 9 Breaking Bad – Season 4 Sony Pictures Walt Disney 3.0% 10 Game Of Thrones – Season 1 Warner RLJ Entertainment 2.9%

*Box-sets included.

2014 top TV franchises Volume

Pos Title 1 Breaking Bad 2 Game Of Thrones 3 Mrs Brown's Boys 4 Top Gear 5 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

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Music – DVD and Blu-ray OWNERSHIP

2014 video top 10 - music Company shares – music 2014 Volume Value

Pos Title Artist Company Universal Music 23.8% Sony 1 This Is Us One Direction Sony Music 13.3% Pictures Where We Are – Live Sony Universal Pictures 9.2% 2 One Direction From San Siro Stadium Music Warner Music 7.2% Live At The O2 and Universal 3 McBusted Sony Pictures 7.1% Tour Play Pictures Entertainment Opus Arte 3.3% 4 Through The Never Metallica One Eagle Rock 3.0% Ghost Stories – Live Warner 5 Coldplay Channel 4 2.2% 2014 Music Lord Of The Dance – Michael Universal BBC Worldwide 2.0% 6 Dangerous Games Flatley Pictures 20th Century Fox 1.4% 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

Source: Official Charts Company

Factfile In April 2014, Vivendi-owned Universal Music, who own labels from A&M Records to Virgin EMI, acquired Sold: 1.8m UK-based Eagle Rock for an undisclosed sum. Eagle Rock’s library includes nearly 2000 hours of Consumer spend: £17.9m 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

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Sport and fitness – DVD and Blu-ray OWNERSHIP

2014 video top 5 - fitness Company shares – fitness 2014 Volume Value

Pos Title Company BBC Worldwide 26.9% 1 Davina – Fit in 15 BBC Worldwide Universal Pictures 22.1% Lionsgate 2 Jillian Michaels – 30 Day Shred /Elevation Sales Elevation Sales 12.7% 3 Vicky’s 7 Day Slim Universal Pictures Anchor Bay 9.8% 4 Josie Gibson’s 30 Second Slim Universal Pictures RLJ Entertainment 5.8% 10 Minute Solution – Blast Off 5 Anchor Bay Belly Fat Source: Official Charts Company

Factfile Whilst Jillian Michaels sold the most videos in 2014, Sold: 1.02m Davina McCall commanded a Consumer spend: £8.9m significantly higher price for her titles generating 61% Average selling price: £8.79 more revenue on 8% fewer sales. 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 Company shares – sport and other 2014 Volume Value

Pos Title Company FremantleMedia 41.5% 1 WWE – Wrestlemania 30 FremantleMedia Lace DVD 12.3% 2 London 2012 Olympic Games BBC Worldwide Duke 7.7% 3 Ryder Cup 2014 Official Film Lace DVD BBC Worldwide 6.7% 4 The British & Irish Lions 2013 Lace DVD Liverpool FC Season Review Go Entertain 6.1% 5 BBC Worldwide 2013/14 Source: Official Charts Company

Factfile

Sold: 573k

Consumer spend: £6.5m

Average selling price: £11.34

62% of sales are Catalogue WWE accounts for 30% of 93% are on DVD sales in Sport & Other (171k).

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OWNERSHIP Special interest (live comedy) – DVD and Blu-ray

2014 video top 10 - special interest: comedy Distributor shares 2014 Volume Value

Pos Title Artist Company Universal Pictures 58% Universal 1 Monsters - Live Lee Evans BBC Worldwide 19% Pictures My, What I Call - Live BBC Channel 4 17% 2 Miranda Hart Show Worldwide Universal Music 2% For The Love of Mrs Mrs Brown’s Universal 3 Anchor Bay 1% Brown - Live Tour Boys Pictures 4 Home Bird - Live Sarah Millican Channel 4 Mrs Brown Rides Mrs Brown’s Universal 5 Again Boys Pictures Back In The Game - Micky 6 Channel 4 Live Flanagan BBC 7 Hit The Road Mack Lee Mack Worldwide Russell 8 Wonderbox Live Channel 4 Howard Jack Whitehall Gets Jack 9 Channel 4 Around - Live Whitehall Kevin Bridges – The Universal 10 Kevin Bridges Full Story Boxset Pictures

Factfile

Sold: 3m

Consumer spend: £28.3m Average sales price: £9.49 COMEDY Comedy is 87% of market % New Release is two thirds 61sales of market DECEMBER

2014 video top 4 - special interest: other Distributor shares 2014 Volume Value Pos Title Company Opus Arte 7.9% 1 The Secret Brightspark Universal Pictures 6.3% Best of 3D – The Ultimate 3D 2 Universal Pictures Collection BFI 6.2% 3 Midnight Tango Kaleidoscope Go Entertain 4.3%

4 Shakespeare’s Richard III Opus Arte FremantleMedia 4.1% Simply Media 3.3%

Kaleidoscope 3.2%

Source: Official Charts Company

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RENTAL Rental overview

2014 video rental split

sVoD £381 Million Digital rental

tVoD £264 Million 34% Digital rental revenues have Disc rental £106 Million risen to £645 million.

Source: IHS

Proportion of GB renting annually

Total rental 16.4% 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 Factfile and was worth £645 million in 2014 according to IHS an increase of 34%. This increase has been driven by services from companies such 8.1m people as Netflix, Amazon and iTunes offering content either on a subscription basis with a rented a video monthly fee or on a transactional basis for limited time viewing. 46% more people rented VoD

Consumer spending grew 25% on VoD and 35% on sVoD

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Rental consumer behaviour RENTAL

Average number of VoD rentals

Transactional 4.6 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 Factfile in 2013. With more new consumers in the market. Average spend The VoD renter is typically male (70%), aged per consumer on iVoD 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% 30% 21% 2011 71% 29% 645 2012 52% 48% 495

329 2013 43% 57%

193 159 2014 41% 59%

tVoD sVoD 2010 2011 2012 2013 2014

growth rate year on year £ million

Source: IHS

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RENTAL 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. 14

6.9 million people rented UNDER a video via a transactional 25-34 20 VoD service. ABC1

The typical VoD renter Nearly 11% of VoD is male, 25-44, ABC1. consumers are aged under 20.

Source: Kantar Worldpanel

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HARDWARE Hardware

Average TV screen size

18.9” 25.4” 36.3”

1994 2004 2014

We are experiencing a big screen revolution. Factfile Average screen sizes have been growing 1 inch per year. However in 2014 they grew 3 inches to 36”. AV hardware spend up The 50”+ category was c13% by volume and the 8% including games largest by value at c30%. The FIFA World Cup and consoles. ‘Black Friday’ helped bring forward TV volume sales, according to GfK, although it is not thought TV volume sales up 4% that the two events increased sales overall. Average screen size up 3” to 36”

50”+ now 30% of consumer spend.

Factfile

200k UHD TVs sold.

2.7m DVD players sold.

1.1m Blu-ray players sold.

Source: GfK

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