BVA YB14Full Cover 27/05/2014 16:46 Page 1

B VA Y E A R B O O K

2 0 1 4 THE BVA YEARBOOK BVA THE 2014

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B VA Y E A R B O O K

2 0 1 4

British Video Association BVA YB 14 Inner AW 27/05/2014 16:40 Page 2

INDUSTRY GLOSSARY Industry Glossary

App Application, software EST Electronic sell-through. Socio-economic Groups embedded in internet connected See DTO. A – upper middle class, higher devices. Hardware Physical devices, eg managerial, administrative or Audiovisual Industry Includes television, computer, set top box, professional. video, television and film. disc players, mobile devices etc. B – middle class, intermediate AWOP Average Weight of HD-DVD High density optical disc managerial, administrative or Purchase. % of units purchased in format for domestic use. professional. a given time-frame. Developed by Toshiba, C1 – lower middle class, supervisory Average Weight of Spend Amount obsolete. or clerical, junior managerial, spent on a category in a given HD/High definition/Hi-Def A set of administrative or professional. time-frame. standards to deliver broadcast, C2 – skilled working class, skilled Bandwidth A term used to describe internet, or optical disc allowing manual workers. the capacity of an internet significantly better resolutions, typically at a minimum resolution D – working class, semi and connection defined as the unskilled manual workers. maximum bit rate downstream. of 1280x720 to a ‘full HD’ standard of 1920x1080p. E – those at lowest level of Bit rate The speed at which a subsistence, state pensioners or digital file is transferred expressed Home Media Server A networked storage device in the home used to widows (no other earner), casual or in bits per second, eg 1 Bps. Bit rate lowest grade workers. is defined in video streaming to store music, video and picture files Software indicate interruption free viewing. for distribution to hardware Programming which attached to a home network. Also interfaces with hardware to provide BitTorrent A peer-to-peer file known as Digital Media Server or a task or function. sharing protocol commonly used Home Hub. Streaming for the illegal sharing of digital The process of files. Hybrid Set Top Box A single set delivering content over the top box that will access Digital TV internet which starts playing Blu-ray Disc/BD High density and download on-demand before the full file has been optical disc format for domestic programming. received. In streaming use. Used to carry Hi-Def audio and formats do not save the file on the video and interactive content. IPTV Internet Protocol TV. Content delivered across the internet using local hard disc. Cannibalisation Erosion rate of broadband connections and sVoD Subscription Video-on-Demand. legitimate transactions. internet protocols. Used in BBC tVoD All transactional Video-on- Cloud Networked online storage iPlayer, 4oD and other internet TV Demand sevices. for file-hosting services. services. TV-VoD VoD services delivered by Digital File formats Audiovisual iVoD VoD services delivered on IPTV. files can be formatted in various open internet. UMD Universal media disc, file types using differing standards Mbps Megabits per second. and codecs, such as Windows developed by for the PSP. Media and MPEG 4. NVoD Near Video-on-Demand UltraViolet (UV) Digital ecosystem where multiple viewing times are using a common file format and Download-to-Own/DTO Online sale fixed by providers. of digital video, where files are cloud-based digital locker to create downloaded for multiple replays. Penetration Proportion of people interoperability of digital video or households. entertainment. DRM Digital Rights Management – Video Allows publishers to control access PPV Pay-per-View. The distribution Embraces all forms of audio- to, and facilitate payment for, their of programming on cable or visual content from packaged media content. satellite for a single viewing. (DVD, Blu-ray etc...) to digital services. VoD DTT Digital Terrestrial Television. PSP PlayStation Portable. Video-on-Demand, a digital rental model. Format Shifting Copying of PVR Personal Video Recorder, Wireless Multimedia Adapter content from one form of storage hardware used to record and time A to another (for example, from a CD shift television. device to transfer files from a to an MP3 player). Rentailer Rental store. computer to a television across a wireless network, for example Apple iTV.

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CONTENTS Contents

FEATURES DIGITAL

Industry glossary 2 The digital video market 68 Foreword 5 Video entertainment map 70 Chairman’s introduction 7 Digital retail 72 Director General’s review 8 Digital rental 73 British Board of Film Classification 10 Digital subscription 74 International Video Federation 12 The Return of Home Recording 75 Federation Against Copyright Theft 14 RENTAL Alliance For Intellectual Property 16 Entertainment Retailers Association 18 Consumer market 76 Industry Trust For IP Awareness 20 Shipments 78 Market overview 22 Company shares 80 Genre split 81 RETAIL Rental charts 82 Consumer sales 28 Disc rental charts 84 Shipments 30 Rentailer shares 85 Seasonality 32 Consumer behaviour 86 Releases 33 GENERAL Genres 34 Retailer shares 36 Hardware 91 Company shares 38 Technology intentions and ownership 93 Overall video chart 40 Leisure spending 94 DVD chart 42 Cinema 96 Blu-ray Disc chart 43 International markets 98 Feature Film 44 Children’s 46 Directory 100 Music 48 Sport 50 Fitness 51 TV 52 Catch-up TV 54 Special interest (live comedy) 56 Special interest (other) 57 All-time charts 58 Consumer behaviour 62

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© 2014 Twentieth Century Fox Home Entertainment LLC. All Rights Reserved. BVA YB 14 Inner AW 27/05/2014 16:40 Page 5

FEATURE Foreword

by Viscount Younger of Leckie As the European Union considers reforms to the European copyright framework, it is vital that any Minister for Intellectual Property changes support this vision for growth. The video sector has been an important contributor to discussions that have had on this topic and to the wider debate taking place in Europe. The UK has made clear to the European Commission that British creativity is highly marketable, award- any proposals to update European copyright law winning and sought after. Our creative need to be built on a robust evidence base, industries that draw on it are among the most should be technology-neutral, and must protect influential and successful in the world, the rights of creators as well as encouraging new contributing £71.4 billion per year to the UK businesses and services. We want to keep economy. working with the sector to make sure that happens. The video industry is a hugely valuable part of this diverse and dynamic creative economy. In such a contested area, evidence matters. Good Video continues to be an important channel for information supports the development of strong new film, high quality TV drama, documentaries evidence-based policy and helps the Government and other genres, including children’s and others to build their understanding of the programming. The box-set remains ever popular importance of the audiovisual sector and its at home and abroad, so it is no surprise to see contribution to the UK. The Government that even the Prime Minister finds time to watch encourages the sharing of data and statistical his favourites (as evidenced by his significant information, and the BVA’s annual Yearbook, and collection glimpsed in the background during the facts about the industry it sets out, make a Angela Merkel’s recent visit to No.10)! valuable contribution to that body of knowledge. In my role as Minister for Intellectual Property, I The Government’s broader economic plan have many meetings with representatives of the provides the basis for creative industries to audiovisual sector and I am always encouraged flourish. Within Europe, the UK is ahead of the to hear of the many new services that are being game in adapting to changing technologies and developed which enable us all to enjoy content being the place where many services launch first. on an increasing range of platforms. Whether Meeting consumer demand for quality content in buying, renting, downloading or streaming ever-better ways will continue to propel the video content or whether watching the latest video industry ahead in the years to come. It will release at home with our families or viewing our support not just a thriving and important sector favourite TV programme on a portable device, we of the UK economy, but ultimately the original all enjoy greater freedom in how, when, and content that millions of people enjoy both here where we watch film and video content. and, through the sector’s strong exports, across the world. In a changing market, the ability to innovate and move with is crucial. The Government is committed to achieving strong, sustainable and balanced growth that is shared across the country and between industries. A modern, robust and flexible copyright framework that supports innovation and growth is essential for the UK’s world-class creative industries. 5 BVA YB 14 Inner AW 27/05/2014 16:40 Page 6

TO ALL BVA MEMBERS:

THIS YEAR, EVERYTHING IS AWESOME!

LEGO, the LEGO logo and the Min gure are trademarks and/or copyrights of the LEGO Group. © 2014 The LEGO Group. All Rights Reserved. THE LEGO MOVIE © The LEGO Group & Warner Bros Entertainment Inc. BVA YB 14 Inner AW 27/05/2014 16:40 Page 7

FEATURE Chairman’s introduction

Significant innovation in access to digital content by Charlie McAuley via streaming models continues apace and Chairman, consumers are adapting to these services parallel British Video Association with the industry pushing to expand physical space for DVD and Blu-ray Disc in non-traditional outlets. The total video entertainment market grew roughly 0.5% in 2013 to an estimated £2.245 billion in consumer spending, according I write this note after three years as Chair and to the aggregated results of the various research I prepare to hand over responsibility to a newly sources used by the BVA - encouraging for a elected Chairman. It has been a privilege and market going through substantial change and a pleasure to serve the BVA in a period of background of economic uncertainty. substantive and often disruptive change to the FACT, the Industry Trust for IP Awareness and the traditional retail landscape and observing the Alliance for Intellectual Property continue to development of new and exciting digital work tirelessly and in close cooperation with the content delivery models. BVA to promote the interests of our members. Packaged media remains the material way in This includes liaison with UK and European which consumers continue to access and enjoy authorities in the global fight to combat the content but there is an absolute recognition that constant threat to the creative industries due to the BVA needs to continue to adapt in this new the scale of pirated on-line content. We will fast moving environment. The contracting nature continue to highlight to the political community of the traditional physical business has placed the value of the UK entertainment industry’s budgetary pressures on member companies and contribution to the economy and the need to the imperative for the BVA to offer improved ensure strong protection of our intellectual value for money. property. There is a recognition that the BVA and our Thanks to our members’ and colleagues’ members need to be more radical and focused in commitment and support of the BVA we will addressing the changing landscape, to move adjust and adapt to the changing ways down a path of ever closer collaboration and consumers access their choice of entertainment consolidation with other trade bodies to improve and continue to represent the interests of video efficiencies and cost management which reflect distribution on every platform and format that the way the traditional audiovisual industry, and delivers our content to audiences in the years to video’s role as the key engine driving return on come. investment, is evolving. 1979 1980 Five years after the first VCR Hollywood studios started to enter the rental player was launched, the player market. The British Videogram Association was population was just 230,000. The formed. first pre-recorded software appeared.

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FEATURE 2013 a turning point for the BVA

by Lavinia Carey Director General, and industry British Video Association

Sustainability, the watchword of Our research was strengthened... the previous year for all of us, was Research has always been an important aspect truly tested when HMV and of the BVA’s service to its members and the industry as a whole; it feeds into companies’ Blockbuster entered administration planning and policy decisions and supports the and the repercussions were felt by BVA’s media and government relations at a video distributors, particularly the critical time of change. In 2013 the BVA invested in the recruitment of a new Insight Consultant independent labels. and commissioned further qualitative research to The BVA’s focus in the early stages was to understand how families are adapting their provide guidance on the process conducted by viewing habits and the effect of disruptive the administrators. It was clear there would be technology on the role of DVD and Blu-ray Disc winners as well as losers, but the resulting in the home. The results of this work were reduction of video stores on Britain’s high streets presented to our members at the BVA’s annual understandably affected the performance of research conference, to which key research physical discs and contributed to the trend providers were invited to speak to the industry towards greater up-take of digital services as a and engage the audience in the debate more convenient way to access video surrounding the transformation of video entertainment – which is as popular as ever. BVA entertainment in a rapidly growing digital market. research pointed to those retailers most likely to gain and the findings reported in our Yearbook explore the underlying consumer data patterns Supply-chain efficiencies... in the audio-visual sector. One of the industry’s challenges that we began to address in 2013 was the need for greater visibility of video in the now dominant grocery 1981 1982 The first trade publication, VCR penetration reaches three million Video Business, published the households. first rental chart, which was topped by Jaws. MRIB was later formed to compile these charts.

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FEATURE

trade, as this is the main source of consumer already committed to the provision of UltraViolet sales of the ever-popular DVD and growing Blu- and Digital HD copies on Blu-ray Disc and DVD ray Disc market, where impulse buying takes participated in discussions with retail colleagues place far more readily than online. Thanks to the who are developing their cloud-based locker work of the BVA’s Operations Committee, there services ready for a full consumer launch in the is a ready forum for sharing proposals for supply- UK. It has been a difficult process. However chain efficiencies. Following store visits, three there are high hopes for at least two retailers to working groups were set up to explore complete the work in time for beta testing before improvements in forecasting, in distribution the end of this year. processes and stock management, which delivered some notable progress ahead of the crucial Q4 sales period. More can be done to The lobbying continues... share best practice amongst distributors and Throughout the year we regularly reported on retail customers and it is the BVA’s mission to the growth of users paying for digital video build on this encouraging start. services (see pages 22-26 and 70-75), which is not necessarily reducing viewers’ video expenditure but is certainly influencing Promoting the physical and digital... significant changes in behaviour. For this reason Collaboration in the development of strategic the BVA campaigned vigorously against the marketing continued in 2013. The BVA ran a new Government’s plan to introduce a private copying PR campaign in the run-up to Christmas, in exception to UK copyright law that was to apply cooperation with ERA and the BVA’s members, to equally to physical and digital downloads, not create a buzz around the benefits of physical only because the proposal failed to take account discs as a popular gift for family and of the burgeoning digital services on offer to through social media. This pilot laid the consumers and risked disrupting their fragile foundations for a fresh initiative in 2014 to commercial viability but also because it appeared support video at retail in the face of media stories to be in breach of EU law. The BVA’s lobbying that present the growth of digital services as activities will continue, in concert with our having taken over the audiovisual sector. partners, at national and European levels to minimise the harm from ill-conceived attempts to At the same time, the roll-out of enhanced influence the way audiovisual services evolve in physical propositions took many months of BVA the coming years. liaison and support, as member companies 1983 1984 MGM/UA shipped 20,000 copies First Disney animated classic: of Poltergeist, a record at that Alice In Wonderland. point.

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FEATURE Ensuring the trust of the public

by David Cooke Director, and industry British Board of Film Classification

I’m delighted to be contributing to online. BVA members have responded strongly the BVA Yearbook following to this expectation. In 2013 we saw a three-fold annual increase in content classified under our another year of close and intensive best practice, self-regulatory Watch & Rate cooperation with the BVA. service for films and that are only being distributed online. 43 different companies used 2013 saw our fourth major public Watch & Rate during 2013, including 34 for the consultation into classification first time. The BBFC’s online ratings now appear on nearly all major online platforms, with new standards. This research informed members including iTunes, , the new BBFC Classification FindAnyFilm.com, Kaleidoscope, Lionsgate, Guidelines and will impact directly Thehorrorshow.tv, VD.IO, Wuaki.TV, Film 4OD, EE Store, , BFI, UltraViolet and the adult on how we classify your video platform Joybear. works. During 2013 we also shared with BVA members This research involved 10,500 members of the the results of independent research into how the public who told us what sort of content they BBFC is perceived by its customers and what expect to see at the different age categories. changes you would like to see in how we work. 89% of recent film viewers rate classification as Overall, you awarded us 8.5 out of 10 in terms of important, with 95% of parents with children up customer satisfaction. You were particularly to 14 regularly checking the BBFC classification. satisfied with our work in the following areas: 92% of recent film viewers agreed with the classification of films they had seen recently. • Communication between the BBFC and customers, including face to face discussions The public also expects to see BBFC classifications on video content distributed 1985 1986 Video Collection (VCI) effectively launched the Hollywood Studios enter the retail market. retail market, releasing 50 titles in Woolworths at £6.99 each. These sold a million units in six months.

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FEATURE

BBFC video turnaround time (calendar days)

20 2500 15 248 18 12 1 16 2000 201 14 0 12 1500 U

1448 PG 10 1361

8 1000 6 4 R18 500 520 18 2 393

0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1 6 0 7 9 1

• The BBFC’s commitment to using new More than once during 2013, the BVA and BBFC technology worked in concert to encourage Government to make sensible regulatory changes which • The BBFC’s swift response to changes in the continue to protect children and empower market consumers without placing an undue burden on • Turnaround times and fees. During 2013 the industry. These range from the small – average turnaround time for a video work encouraging Government to accept, under recent was 7.5 days and fees remained at, or below, Labelling Regulations, removable belly bands and their 2006 levels, meaning that BBFC fees to steelbook packaging with BBFC age ratings and BVA members have gone down in real terms insight – to the more significant – agreeing a joint by 18% over the past seven years position on legislation to lower the threshold at which video works lose their exemption from We are not, however, resting on our laurels. classification, due in Spring 2014. During 2013 we introduced a new Digital VRA service which gives customers the option to On a more personal note, I should like to submit content on MPEG 4 files instead of on a congratulate Lavinia on 20 years at the helm of physical disc. This is cheaper, faster and more the BVA. She has been a pleasure to work with, secure for BVA members. We look forward to a partner in the truest sense. In particular, I working with the BVA on further service would highlight her role in working with us to improvements during 2014. Subject to the create and establish systems for the voluntary outcome of a technical trial with two major BBFC classification of videos being distributed distributors, we plan to introduce a service which online, the better to ensure child protection. Our would enable us to offer all our customers a joint work in this area has been much praised by simultaneous theatrical and video classification, Government and others. Lavinia deserves much with a discount of 50% for the video credit for this. I look forward to working equally entertainment classification. The service will fruitfully with her and the BVA membership in apply when you can give us a copy of the film for 2014 and beyond. the BBFC’s statutory archive as required by the Video Recordings Act. 1987 1988 Gallup extended its music retail VCR penetration approached two-thirds of audit to cover video. The panel homes. size was doubled to 500 outlets.

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FEATURE More choice than ever before – why

by Charlotte Lund Thomsen then reinvent Director General, International Video Federation the wheel?

Consumers in Europe have access More than 3,000 on-demand video services to more legal video content and available in Europe . . . services on more devices than ever In spite of these developments, the 2014 political agenda is challenging our industry at its core before, including more than 3,000 with focus on the proposition that the body of law on-demand video services1. With which we rely on – mostly copyright – is outdated an estimated annual consumer and in need of reform, or at least modernisation, in order to foster innovation and economic spend across Europe of development. Interestingly, the existing legal approximately €9.2 billion in framework in Europe has permitted the core 20122, video entertainment copyright intensive industries active in Europe to generate 7 million jobs, contribute approximately signifies innovation, cultural €509 billion to Europe’s GDP and generate a diversity, quality and good value trade surplus with third countries3. for European consumers.

Core copyright intensive industries in Europe generate 7 million jobs and contribute EUR 509 billion to Europe’s GDP . . . There is an ongoing fascination with “new” technology and media players on the internet and the role which these may play in reinvigorating Europe’s economy, securing future growth and employment. However, so far the “new” players’ contribution to employment, GDP 1989 1990 Rain Man the first ‘straight to Dirty Dancing becomes first video title to sell 1 sell-through’ film. million copies. CIN formed to commission and market retail charts (compiled by Gallup).

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FEATURE

and tax revenues in Europe has been moderate. It is a misleading assertion that the copyright review will be a short-cut to economic growth. Technology evolves and has indeed transformed The reality is that the supposed economic the publishing and distribution of video content. benefits of regulatory reform rarely stand up to However, technology does not change the scrutiny. The IVF and the BVA therefore continue fundamentals: creating, producing, marketing to insist that the burden of proof for the need to and distributing professional audiovisual content change must be on those demanding review of involves risk-taking, partnerships and willingness the current rules. They need to make a to develop a business plan for each individual film compelling case substantiating benefits to or television programme. This risk-taking – by all Europe and its Member States as a whole. the creative and business partners involved – is Empirical evidence shows that the content protected and promoted by copyright. market in Europe is healthily competitive, Weakening the current copyright system would growing at a faster rate than the wider economy. imply weakening the basis for innovation, This should be the basis for judgement and creativity and business opportunities – in reflections about the need for review of the industries which have already proven their current legal framework. invaluable contribution to European and national economies, as evidenced by the OHIM/EPO study mentioned above. The content market in Europe is growing at a The IVF and our local partners, such as the BVA, faster rate than the wider economy are at the forefront of the current political, regulatory and legal developments. Together we 2014 is a transition year for the European Union: argue that the current copyright system is fit for elections to the European Parliament take place purpose and strikes the right balance between in May 2014 and will be followed by the protecting creativity and investment in appointment of a new Commission later in the professional content and ensuring its availability year. We will be looking to the new European in new and evolving ways. Commercial and decision-makers at the Commission and the contractual freedom, guaranteed by the current European Parliament to ensure that Europe European legal framework, is what enables continues to be a place where creativity and investment and market growth. At the same creative industries can thrive and deploy new time, this legal framework has enabled the technologies in building sustainable business development and growth of new technologies; a models - after all, this is the best way of wide range of new platforms and distribution guaranteeing more choice on more formats, models have emerged and are doing good services and devices than ever before, all to the business in Europe. benefit of European consumers.

1. European Audiovisual Observatory, May 2013. 2. International Video Federation: www.ivf-video.org. 3. OHIM/EPO: Intellectual property right intensive industries: contribution to economic performance and employment in the European Union, September 2013. 1991 1992 Fantasia becomes first video to sell 2 million The CIN panel increase to 1,300 stores. units. Value of the retail market overtook rental. MRIB launches audit to estimate rental transactions for the first time.

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FEATURE Boxing Clever

by Kieron Sharp Director General, Federation Against Copyright Theft

FACT’s work protecting its thanks to our innovative domain sign-over members’ intellectual property has programme. This process was documented in September when BBC Radio 1’s Newsbeat developed greatly in the past few programme accompanied FACT investigators on years. ‘Hard goods’ piracy a visit to a website operator in Berkshire. (especially counterfeit DVDs of Hard goods piracy does persist, however, in the individual films), has diminished form of box-sets of all major TV series and some films, mirroring the demand in the legitimate greatly and internet based piracy marketplace. These box-sets are often high in all forms is the main focus for quality copies, in packaging that is almost our intelligence gathering and indistinguishable from the genuine article and with discs manufactured in pressing plants, not investigations. via DVD-R copying. The most popular TV series Organised crime groups internationally have are counterfeited but family and children’s films seen the opportunities for profit from internet are also sold in large volumes via traditional criminality. The distribution of films, TV online marketplaces and bespoke websites. The programmes and other digital media is now prevalence of these counterfeits has been a another business for them. growing concern for FACT’s members and we have been targeting the distribution and sale. FACT’s targeting of source piracy, the operators and owners of websites and the ways in which Our relationship with Border Force at the they generate revenues continues to have a Coventry Postal Hub, which receives most major impact. In 2013 over 130 websites were incoming and outgoing international packets, has taken down and some now direct visitors to seen shipments stopped and valuable intelligence FindAnyFilm.com or thecontentmap.com, from gathered. The first arrests made by the new where legitimate content can be purchased, Police Intellectual Property Crime Unit (PIPCU) in 1993 1994 The value of the video Millward Brown takes over the CIN chart, market passes £1 replacing Gallup. The panel size is increased to billion. The Jungle Book becomes first title to 3,000. sell 3 million and then 4 million copies. The MRIB panel was increased to 250 stores.

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FEATURE

September 2013 came from intelligence gathered by FACT on individuals involved in the sale of counterfeit box-sets. FACT intelligence is now assisting PIPCU in gaining traction with law enforcement in Asia, where the manufacturing is believed to take place, with recent visits to China helping to forge relationships. Online traders are running businesses solely based on the sale of box-sets originating from China – these sell for only marginally less than on the high street and are known to be contributing Infringing Website List (IWL) of the most substantially towards criminal businesses. One egregiously infringing sites to which brands, trader on eBay had over £1 million going through agencies and networks can subscribe. FACT has his PayPal account in two years and 99.99% now contacted over 200 brands in the past three positive feedback from his customers. His case is years - informing them that their ads were proceeding through the criminal courts. This appearing on pirate websites – and the vast illegal trading threatens all in the audio-visual majority have responded positively. The ‘follow value chain. the money’ approach is now a key strand in anti- piracy strategies across the globe. Our work to target online advertising revenues that sustain websites providing access to FACT has also gained new members, BT Sport streamed, downloaded and shared digital content and Virgin Media, with both recognising that any has moved on apace with the inception of strategy to protect IP and the delivery of PIPCU’s Operation Creative. This unique initiative entertainment content requires a coordinated brings together rights holder trade bodies and response using a dedicated intelligence led advertising trade representatives to produce the organisation. 1995 1996 Blockbuster and Global added to Riverdance becomes the best-selling non-film MRIB panel. Asda, Dixons Group ever. and Sainsbury’s are added to the and MVC added to CIN. CIN panel.

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FEATURE Raising awareness of the by Susie Winter Director General of the Alliance For value of IP Intellectual Property

2013 was a challenging year for Department for Business, where we have those businesses that look for a stressed the importance of clarity in the language the government proposes, so that it stable and protected IP framework does not open the door to costly legal action. to enable them to earn a living We’ve also worked hard in 2013 to ensure the from their creativity. value of IP, the contribution it makes to the UK economy and its importance to small and The end of 2012 saw the publication of medium sized companies up and down the Modernising Copyright – the UK Government’s country, is well understood. To this end we final say on the reforms to copyright exceptions launched, at our Summer Reception, the Alliance proposed by Professor Hargreaves. Even after IP Map – a visual demonstration of the number the evidence which ‘supported’ these reforms and variety of businesses across the UK which was roundly criticised – not only by organisations rely on IP for their commercial success. such as the Alliance and the BVA but also academics and even the influential House of The influence of the Hargreaves Review Commons Culture Select Committee – it was continued to be seen in Brussels, where his disappointing to see the Government continue strong view that the European copyright down a path of significant reform. Our focus, framework required radical reform has therefore, has been to ensure that these reforms unfortunately been translated by Commission are implemented in a way which causes the least officials as the official UK government position. possible harm to content creators and UK parliamentarians heard this directly when businesses. members of the All-Party IP Group visited Brussels to meet European policy makers. They Our work has involved numerous discussions were understandably concerned and raised it with officials at the Intellectual Property Office with the IP Minister and his officials on their and meetings with Ministers and Advisers in the return. Fortunately, the Intellectual Property 1997 1998 Star Wars Trilogy box-sets generate consumer Titanic becomes best-selling video of all sales worth over £40 million. Blockbuster added time. The MRIB audit renamed the Rental to the CIN panel. The BVA starts consumer Monitor; additional data supplied by research quarterly, interviewing 1,800 people Choices, Apollo and MVC. Taylor Nelson about their video usage and attitudes. Sofres takes over Media Vision Research. CIN starts measuring DVD sales.

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FEATURE

Rt Hon Dr Vince Cable MP, Secretary of State for BIS (left) and Michel Barnier, European Commissioner for the Internal Market & Services (right) addressing the Alliance IP Conference in October 2013.

Office responded to these concerns and Michel Barnier. The audience of around a undertook a call for views on what the UK policy hundred and fifty people from across the creative position should be in Brussels. This, along with and brand industries, policy makers and their response to the Commission’s own enforcement officials discussed the future of IP consultation, has resulted in a much more policy in the UK and Europe, learnt more about measured position being taken, one which consumer attitudes to IP via the publication of acknowledges the potential for licensing to meet specially commissioned polling from Populus and users’ demand, as opposed to the introduction of had the opportunity, via live polling, to share their new legislation and regulation. own views. The past year’s parliamentary agenda has also Importantly, the conference also saw the launch provided us with opportunities to raise on the of the Alliance’s Call for Views to hear from floor of both House of Parliament long-standing creators and businesses what issues matter to Alliance issues such as the different levels of them and how they think IP can be better criminal sanctions for online copyright promoted and protected in order to ensure that, infringement and physical copyright by 2020, the UK is the best place to start, build infringement. We lobbied for an Opposition and base an IP-rich business. With European amendment to address this during the passage elections this Spring and a General Election in of Intellectual Property Bill which resulted in a 2015, the Alliance is taking these findings to all commitment from the Government that this the major parties to ask that they incorporate anomaly will be reviewed during 2014. them in their manifestos. Our third Annual IP Conference proved to be the best yet, with a stellar line up of speakers, including Business Secretary Vince Cable, IP Adviser to the Prime Minister Mike Weatherley MP, Arlene McCarthy MEP and EU Commissioner 1999 2000 Taylor Nelson Sofres launches its Jungle Book overtakes Titanic as the best-selling video Audio Visual Trak consumer panel of all time. Safeway and several ‘e-tailers’ added to of 10,000 households. CIN CIN panel. Panel size now 4,800 stores. Gladiator launched its online service. becomes first DVD to sell over 100,000 copies in a week. DVD hardware penetration reaches a million homes. Total video value passes £1.5 billion mark.

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FEATURE Retail Investment Driving

by Kim Bayley Director General, Video Entertainment Retailers Association Growth

The past 12 months have seen a The Entertainment Retailers Association (ERA) is welcome return to growth for the historically associated with physical retailers – most notably the supermarkets who are so video market in terms of sales and important to video’s fortunes – but these days we digital expenditure, and this count among our members many significant positive headline 3.7% increase digital entertainment platforms from to Amazon’s Prime Instant Video (formerly comes after a phenomenal amount LOVEFiLM), and Blinkbox. of investment and commitment by To reflect this, ERA has restructured its entire the retail sector. board to focus on its three key retailer types – multiples, independents and digital services. This is already paying dividends, giving impetus to our discussions and allowing rapid transfer of knowledge between our three product sectors – video, games and music – each of which are at different stages of entertainment’s digital revolution. It is tempting for suppliers to focus on quality of releases and marketing as key drivers of the market, but it would be remiss of me not to point out that retail investment in extending video’s distribution is at least as important a factor. Despite the recent well-known travails of the physical market, the number of physical outlets

2001 2002 Rental Monitor starts to measure DVD rental. Taylor Nelson Sofres launches a new consumer The Mummy Returns is the first DVD to sell panel, monitoring consumption of Film at the over 200,000 copies in a week. Gladiator is the cinema, on rental and on pay-per-view. first DVD to sell a million copies. Total video value just under £2 billion. CIN renamed the Official UK Charts Company (OCC).

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FEATURE

stocking video reached an all-time-high of 8,803 is complicated by the issues of interoperability in 2013, according to Millward Brown. Meanwhile and exclusives and the history of the video the ever-growing number of digital services business demonstrates that the market thrives represents an investment of literally hundreds of best with interoperable formats and open millions of pounds in the future of video. markets. It is clear that for some time to come, video will New ‘walled garden’ services vying to secure comprise a mixed economy of different formats exclusives, which potentially force consumers to and distribution channels, each catering to subscribe to multiple services to access the different kinds of consumer need. Physical content they want, threaten to inhibit the market formats still have the edge when it comes to before it has really taken off. gifting or impulse buys, for instance, while The digital video market has yet to benefit from digital’s ability to offer virtually unlimited choice the kind of granular data service provided by the and instant availability is a powerful combination. in the physical video Inevitably both physical and digital retailers face market. We will be working closely with the BVA challenges. over the coming year to drive the inclusion of digital data in the Official Charts. As we focus on the digital future, it is easy to neglect the fact that physical remains the Beyond these structural issues, for all elements cornerstone of the sector. The biggest challenge of the retail market the release schedule is of here is reining in the seemingly ever-expanding course vital. 2013 saw a welcome resurgence in range of available SKUs when there is ever more the quality and appeal of new releases led by the pressure on shelf space. year’s outstanding success, the 2.9m unit selling Skyfall (excludes box-sets). ERA members are Retail needs innovation to thrive and Blu-ray has keen to stress that there are nine months of the clearly been a welcome addition to the product year which are not in the fourth quarter and line-up. However the introduction of disc plus- which require a steady flow of new releases to digital and UltraViolet formats threatens to serve customers and keep them engaged in the frustrate retailers and confuse consumers. There video sector. is a strong appetite for a new “bridging format” like UltraViolet which has the potential to bring The message from retailers is that they are physical and digital together for the mass market. investing in video’s future. They are committed to the sector. What they need most to succeed is Meanwhile on the digital side we are seeing an a consistent flow of high quality content – and the interesting shift away from ownership models freedom to offer it in the most appealing way to and towards access-driven services like Netflix the consumer. and Amazon’s Prime Instant Video. This market

2003 2004 Titanic reclaimed the title of best-selling video The Lord Of The Rings: The Fellowship Of The of all time. DVD represents 70% of entire retail Ring becomes best-selling title of all time, market. Peter Kay – Live At The Bolton Albert breaking 6 million unit mark. BVA multiplier Halls becomes best-selling Special Interest video added to OCC online system. of all time after just seven weeks on sale.

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FEATURE Education - delivering more for less

by Liz Bales Director General, Industry Trust for IP Awareness

As the Industry Trust for IP production of new content. The campaign Awareness approaches its tenth signalled a step-change in approach, recognising and rewarding the audience as valued anniversary there are many stakeholders in the future of the industry. It achievements to be proud of. Our established that a positive tone can be highly consumer awareness programmes effective in moderating behaviour and nudging audiences towards legal sources. have restrained piracy by 4-5 percent - or 2 million people1 and audiences Now well established, Moments Worth Paying For continues to inspire and inform audiences and exposed to the Moments Worth Paying deliver a range of benefits, suppressing piracy For campaign are twice as likely to and promoting engagement with legal sources. purchase than those who are not. The last 12 months have seen an unparalleled evolution in the integration and visibility of Ten years ago, the Trust was born when physical Moments activity, where collaborations with piracy was rife and before digital piracy became some of the year’s highest profile releases, a reality. The Trust’s behavioural change encompassing Iron Man 3, Despicable Me 2 and approach kicked off with the ‘social stigma’ The Hunger Games: Catching Fire, show a Knock-Off Nigel campaign which running over confidence in the Trust’s ability to consistently two years delivered a three-fold increae in deliver high profile multi-media campaigns to the 2 negative perceptions towards infringement . benefit of both the education objective and to the When recession hit, the messaging evolved, films in question – a mechanic proving so ensuring it continued to resonate with audiences. successful it is opening the door to the You Make the Movies thanked the paying production of bespoke content, such as audience for their investment, showing the link Anchorman 2: The Legend Continues and between people purchasing film and the Muppets Most Wanted, which further strengthens 2005 2006 The BVA celebrates 25 years. Launch of the Hi-Def software launched with the UMD format. ERA provides value data to the release of HD-DVD and Blu-ray in Q4. Industry. Pirates of the Caribbean becomes the fastest-selling DVD of all time, achieving 1.5 million units in its launch week.

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FEATURE

the educational message and drives incremental · 300k - FindAnyFilm monthly visits (x5 value for all. previous six months) Central to the success of the campaign are the · 55% - Moments campaign awareness in links to purchase content and it is here that target audience (16-34 males) FindAnyFilm.com adds significant value. Its · 1.85:1 - Moments campaign recognisers’ comprehensive film availability data now also intention to purchase supports a range of dynamic data tools enabling · 12 – the amount of times pirates pay for the inclusion of purchase options within editorial films (vs. five times non-infringers pay) content, led by the new partnership with Yahoo! Movies and a tailored platform for cinema booking, enabling all distributors to consistently promote pre-booking. The Trust continues to deliver high profile media cut-through moments aimed at parents, delivering in excess of 80 million OTS across 2013. The Trust has also grown and maintained a community of nearly 50,000 Facebook followers on ScreenThing, helping engage the future generations to become stakeholders in our industry. a framework which delivers the education We have long recognised that those who infringe needed to ensure audiences recognise the value audio-visual content remain a valuable audience. of consuming legally and, of increasing The good news is that research suggests that importance, drive engagement across all the digital piracy remains static and that paid-for category formats. Thanks to your continuing legal consumption is up across the board, with all support we can continue to make a difference. audience groups indicating they would consume more legal content if they could not infringe.3 By 1. Sandtable 2012 working collectively the sector has at its disposal 2. GFK 2007-2009 3. ICM 2013 2007 2008 OCC adds value data, to become a single source of Mamma Mia! The Movie becomes fastest-selling title of all volume and value data by product line for the first time time, with 3.1m copies in week one, plus highest grossing box- ever. First full year of hi-def discs sell over a million office ever, taking £69.2m. Blu-ray beats HD-DVD to become units. PS3 launches in March. Total sales hit 250m leading hi-def format. After 99 years of trading, Woolworths making it a record year; the all-time best-seller LOTR: and distribution arm EUK go into administration. Zavvi is The Fellowship Of The Ring breaks 7m unit barrier. another casualty of the ‘credit crunch’.

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MARKET OVERVIEW Market overview More people buy

by Giles Finnemore video than subscribe Insight Consultant to the to Freeview and Sky British Video Association combined

The changing nature of ownership The Department for Culture, Media and Sport relates as much to state of mind as (DCMS) reported in January 2014 that “creative industries accounted for gross value added (GVA) it does to devices, accounts and of £71 billion in 2012, up from about £60 billion content. Exclusive research for the in 2010, a level of growth (19%) that was nearly BVA shows a shift in consumer five times the growth of UK GVA itself (4%).” The DCMS also estimated that the creative industries attitudes, with consumers account for “1.7 million jobs directly and another perceiving that the ability to 900,000 indirectly. They also are a major export access content constitutes earner, with £15 billion (8% of total UK exports of goods and services) in 2011.” ‘ownership’ even if they do not Video in all its guises is an important part of this technically own a copy. creative sector and is crucial to the success of film and television. The total video entertainment market grew roughly 0.5% in 2013 to an estimated £2.245 billion in consumer spending, according to the aggregated results of the various BVA research sources. As a backdrop to the fortunes of video entertainment, 2013’s UK GDP looked healthier than expected but the recovery has been unbalanced, led by consumer spending rather than business investment. According to the Bank of England, the up-turn took hold in the third quarter and the economy started to grow, by a 2009 2010 Blu-ray sold 8.4m discs, up 123% on 2008. 30th Anniversary of BVA’s foundation in August Borders the bookshop chain goes into 1980. We mark the occasion at BAFTA with Creative administration at the end of the year. Industries Minister, Ed Vaizey. Apple launches its iPad tablet. Mamma Mia! The Movie becomes the ® first DVD to pass 6 million units. Avatar grossed £94 million at the UK box-office.

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29.5m MARKET OVERVIEW

22.6m

17.7m 15.5m

10.5m 7.5m 6.1m 3.3m 2.2m 400k Voted in Bought a Visited Listened Subscribe Rented Went Subscribe Bought Subscribe General video the to BBC to Sky TV a video fishing to a video to Election cinema Radio 2 rental Youview service

All figures UK except video which is GB only Video purchase includes disc and download to own Video rental includes disc and Video-on-Demand but not sVoD

total of 1.8% in 2013 according to the Office of “It’s good to have a real copy Budget Responsibility, which also predicted 2014 because we’ll watch it in the car growth of the order of 2.7% and a decline in on a long car ride.” unemployment to 6.8%. Inflation is forecast to fall back from 2.6% in 2013 to the 2% target through 2014 as productivity growth curbs price pressures, and has already dipped below this In fact, research by Kantar Wordpanel, who track level in Spring 2014. The gathering pace of consumer behaviour on a long term basis, expansion during 2013 was supported by an indicates that almost half (46%) of the GB increase in domestic demand. That reflected population (that excludes Northern Ireland for both an improvement in credit conditions, such which data is not available) bought some form of as the fall in home loan rates, and a reduction in video to own in 2013, either on disc or as a digital uncertainty. All of this helped to revive the download, equivalent to some 22.6 million housing market and supported consumer people. This is significantly more than the spending. number of people who visit the cinema (17.7m), listen to BBC Radio 4 (11m), subscribe to Sky TV Video sales, as opposed to rental, still have the or Freeview (both 10.5m), participate in the UK’s lion’s share (see chart on page 25) and were most popular sport - fishing (6.1m) - or buy the worth £1.56 billion in 2013 and of this physical UK’s biggest circulation newspaper (2.2m) discs represented £1.44 billion or 92% of all video reflecting the broad appeal of video ownership. retail sales value – not bad for a market that So, consumer spending on video is healthy and according to some media commentators is physical formats such as DVD and Blu-ray Disc supposedly ‘dead’. still dominate home entertainment consumption.

2011 2012 Final two films from the Harry Potter series Avatar became the first title to sell a million released making the video franchise the most copies on Blu-ray Disc. Over 12 million discs successful of all time. Kantar Worldpanel begins were sold with an UltraViolet copy. First year of reporting on the digital retail and rental markets. Kantar Worldpanel digital data.

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MARKET OVERVIEW

Also growing significantly is the download-to-own (DTO) market, most often referred to as Electronic Sell Through (EST). In 2013 the number “Every month we’ll buy of people in Britain downloading a permanent something new at the digital copy, although low at 2.5% of the supermarket.” population, increased by 45%, with each buyer purchasing on average four titles. Total spend grew 27% to £0.13 billion. The number of services Meanwhile video rental continues to revitalise in available for consumers to buy from also a new format, as consumers seek to take continues to grow and this will further help this advantage of the plethora of services available fledgling segment of the market. There are now on their increasingly popular connected devices. at least eighteen different brands retailing in the Although disc rental declined and saw the end of sector, from Blinkbox to Xbox – see graphic on the iconic Blockbuster brand in the UK, content page 71. iTunes leads the market with an via Video-on-Demand rose 45% to just under estimated 79% share of retail value followed by £0.5 billion. New phrases have entered the Blinkbox with 8%. vernacular, such as ‘box-set date night’, where Research by consultants Bain & Co finds that couples settle down to watch not one but maybe 70% of respondents in the UK reported having four or five episodes of a series in one sitting, watched video online over the past year, however accessed via their subscription Video-on-Demand this figure includes very short form content on (sVoD) service. social sites such as YouTube as well as free catch- So whilst the market as a whole grew just 0.5%, up and streaming services and Video-on- certain segments of the market grew very Demand. Kantar Worldpanel reveals that during significantly. Sales of Blu-ray Discs, for example, 2013 some 4.4% of the GB population either grew 10% and now account for more than £0.25 rented or streamed through internet-based billion of all physical sales or 18%. During the Video-on-Demand (iVoD) services such as iTunes year a further 1.2 million Blu-ray players were or games consoles like the new Sony Playstation bought, taking penetration to over one in five 4. This is in addition to those, above, that have households. Avatar remains the biggest selling downloaded to own. Blu-ray Disc of all time but in 2013 it was Skyfall, The more popular way to access VoD services on of which 760,000 units were bought in the HD a transactional or pay-as-you-go basis is via the format alone, generating £11.5 million in retail set-top box (TV-VoD), from which some 5.6% of Blu-ray Disc sales plus a further 44,000 sales of the GB population, up 25%, have rented video the Daniel Craig Triple Pack alongside Casino content in this way. Royale and Quantum of Solace, generating a further £1.1 million for the franchise. Total spend on transactional-VoD services (TV- VoD and iVoD combined) is estimated by IHS, the global information company, to have grown 17% to £0.2 billion in 2013. Sky leads the market with an estimated 56% share of retail value followed “You just tend to pick something by Virgin Media with 12%. up at Tesco without even thinking about it.” By far the biggest percentage growth has been the increases in sVoD, up 77% year on year to £0.28 billion, just slightly more than spend on Blu-ray Discs. Amazon’s LOVEFiLM (now known as Prime Instant Video) held the highest market share in 2013 with 49% against Netflix’s 45% of 2013 the all-you-can-view sector. Amazon rebranded its range of services in early SKYFALL smashes Week 1 Blu-ray Disc sales 2014 and the e-tailer now provides four different record with nearly 545,000 units sold and third services to the video consumer: DVD and Blu-ray best seller in HD format of all time. Disc to buy from Amazon; rental discs from Number of UltraViolet accounts in UK passes 1 LOVEFiLM-by-post; rent or download-to-own million prior to official launch. digital video content from Amazon Instant Video

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MARKET OVERVIEW

Total video market £2.24bn (up 0.5%) 70% 30%

To own To rent £1.56bn £0.68bn (down 4.7%) (up 15%) 92% 8% 30% 70%

Physical Disc Physical Disc Video-on-Demand £1.44bn £0.2bn £0.48bn (down 6.5%) (down 24%) (up 45%)

DVD Blu-ray Disc Download DVD Blu-ray DiscTransactional Subscription £1.186bn £0.25bn £0.13bn £0.15bn £0.05bn VoD VoD (down 10%) (up 10%) (up 27%) (down 28%) (down 7%) £0.2bn £0.28bn (up 17%) (up 77%)

53% 11% 5% 7% 2% 9% 13%

Total physical: £1.64bn 73%

Total digital: £0.6bn 27%

or subscribe to Prime Instant Video for unlimited download or instantly stream video titles in their video streaming. online library using a service such as Store, Flixster or Kaleidescape (sic), and Meanwhile Netflix has received significant profile watch on up to 12 different devices. in the national media from its purchase of the final season of Breaking Bad and the drama Before any British retailers have built their UV series of its own commission, House of Cards. services, there are already 1.2 million accounts held by UK consumers for the online library Research conducted by The Nursery Research & service, a level that is expected to increase Planning on behalf of the BVA shows a shift in rapidly once they go live and more new titles are consumer attitudes towards ownership. Video released with an UltraViolet code. consumers perceive that the ability to access content either on a pay-as-you-go basis or as part An increasing number of consumers are paying of a subscription service, anytime, anywhere, for video content, to own or to rent, both in constitutes ‘ownership’ even if they do not physical and digital formats. Whilst the vast technically own a copy, digitally or physically. The majority, some three quarters, still prefer discs, a right to view is as important as the rights to view. As a result we are likely to see a further shift towards rental models. A hybrid solution to the desire to own a title on “There are no arguments about DVD or Blu-ray Disc and the ability to access a what to watch anymore. digital copy anytime, anywhere is the Everybody watches what they development of the cloud-based locker system, want but then we’ll watch UltraViolet (UV). Consumers can redeem a code something like ‘I’m a Celeb’ included with DVDs and Blu-ray Discs that have together.” an UltraViolet logo on the package, then

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MARKET OVERVIEW

Digital consumer overlap by format – 2013 v 2012

Total Disc Digital Retail 36.7% 2.6% (39.1%) (1.5%) 3.4% (2.2%) 2.0% 3.0% (3.9%) (1.6%) 1.4% 1.3% 5.6% 12.4% (2.5%) (1.3%) (3.6%) (10.8%) 4.2% Disc 0.7% (3.9%) 19.6% Cinema Rental (0.5%) (17.8%) 1.6% 3.8% (1.5%) (7.1%) 1.6% % GB buyers. (2.7%) Source: Kantar Worldpanel

Physical and Digital consumer overlap – 2013 v 2012

Physical Disc 74.3% 19.2% 6.4% Digital (Retail and Rental) (81.9%) (14.5%) (3.6%) (EST, VoD inc Subscription)

% GB buyers. Source: Kantar Worldpanel

sizeable one in five consumers now do both and this trend will undoubtedly continue. So the prospects for video entertainment in the UK are bright. A plethora of new services from multinational corporations highlights the attractiveness of the UK video market to global investors. Consumers demonstrate that owning a DVD is still the preferred choice, with Blu-ray Disc and a wide range of new digital services growing and providing a choice of how to own, how to buy and how to watch. With great British content such as Skyfall, the number one video of 2013, achieving success around the world, the video business in the UK has a lot to be proud of.

Note: Consumer quotes from The Nursery Research focus groups. February 2014.

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RETAIL Consumer Sales – all physical and digital formats

Retail video consumer sales £2,478

£2,317 £2,256 £2,244 £2,252 £2,229 £2,012 £1,829 £1,910 £1,896

£1,642

£1,565 £1,417

263 £1,100 251 251 234 229 236 £896 222 221 208 194 £784 £878 181 £721 £637 169 £733 £462 135 £402 £587 £342 114 £315 100 96 £168 87 £100 73 79 £50 60 66 48 38 40 45 20 6 12

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Volume (million): VHS DVD UMD HD-DVD Blu-ray Digital retail Value (£million) Source: BVA/OCC/ERA/IHS. Note: From 2007 value data has been revised due to methodology changes. Digital retail figures continue to be revised by IHS.

• Retail is 70% of total market value outstrip wages, with many people expected to be worse off than they were before the recent • 92% of retail is on disc financial crisis until at least 2018. The OBR also • Download-to-own grew 27% predicted that unemployment would fall from 7.6% in 2013 to 6.8% in 2014 and continue to fall According to The Bank of England (BoE), in the to 5.4% in 2018. United Kingdom recovery took hold in the third quarter of 2013. The economy started to grow as Against this backdrop demand for video content lifting uncertainty and thawing credit conditions held up extremely well overall, with the industry began to unlock pent-up demand; however The worth £2.24 billion in 2013, up 0.5%. Video BoE forecast a long way to go before the entertainment is still dominated by sales of aftermath of the financial crisis cleared and physical formats, with more than 162 million units economic conditions normalised. The BoE stated sold in 2013, despite the reduced number of video inflation is set to fall back from 2.6% in 2013 to retailers on the high street. Video sales, as around the 2% target through 2014 as the opposed to rentals, were worth £1.56 billion and impetus from past increases in import prices of this physical discs represented £1.44 billion, or fades and a gradual revival in productivity growth 92%, down just under 7%, driven entirely by a curbs domestic price pressures. The gathering fall in demand for DVD, while interest in Blu-ray pace of expansion during 2013 was supported by Disc grew a substantial 10%. The HD format now an increase in domestic demand. That reflected accounts for 18% of physical disc sales revenue. both an improvement in credit conditions, such Download-to-own (DTO) grew 27% according to as a significant fall in home loan rates through analysts IHS, with iTunes maintaining its 2012/13, and a reduction in uncertainty. All of this dominance of the sector. helped to revive the housing market and supported consumer spending. Retail sales were adversely affected by difficult trading conditions on the UK High Street, with Meanwhile the Office of Budget Responsibility Blockbusters and HMV bearing the brunt, which (OBR) stated that the UK economy grew 1.8% in reduced the availability of video to shoppers. 2013 and predicts growth of 2.7% in 2014. However forecasts show prices will continue to

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Consumer sales – all physical and digital formats RETAIL

Retail sales by format

DVD £2,245 £2,244 £2,227 £2,215 £2,164

£1,839 £1,754 £1,639 £1,526 248 253 235 £1,314 227 £1,213 211 210 £1,186 196 192 162 145 143 £601 90 £246 £63 £3 41 17 4 0.2 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

£126.5 Digital retail £99.3 Blu-ray Disc £80.3 £251.8 £228.9 £70.8 £222.8 £199.4

18.8 18.8 £135.4 £35.0 15.5 16.7 13.6 15.3 £17.0 12.2 £65.3 13.0 8.4 £0.1 £2.6 7.8 £15.6 5.2 3.7 0.1 1.0 0.8

2006 2007 2008 2009 2010 2011201222013 00720082009201020112012 2013

Volume (million) Value (million)

Market share Volume Value Digital Digital DVD Blu-ray Other VHS DVD Blu-ray Other VHS Retail Retail 1998 0.2% 99.8% 1998 0.3% 99.7% 1999 4% 96% 1999 7% 93% 2000 15% 85% 2000 22% 78% 2001 31% 69% 2001 42% 58% 2002 53% 47% 2002 64% 36% 2003 70% 30% 2003 78% 22% 2004 84% 16% 2004 91% 9% 2005 95% 0.2% 5% 2005 97% 0.3% 2.8% 2006 99% 0.5% 0.4% 2006 99% 0.4% 0.2% 2007 99% 0.3% 0.4% 0.3% 2007 99% 0.7% 0.1% 0.3% 2008 96% 1.4% 2.1% 0.5% 2008 96% 2.9% 0.8% 0.4% 2009 93% 3.3% 3.1% 0.1% 2009 91% 6.7% 1.7% 0.1% 2010 89% 5.5% 5.2% 0.1% 2010 86% 10.4% 3.7% 0.0% 2011 87% 6.9% 6.2% 2011 83% 12.2% 4.4% 2012 83.4% 8.6% 8.0% 2012 80% 14.0% 5.9% 2013 79.2% 10.4% 10.4% 2013 76% 16.1% 8.1%

Source: BVA/OCC/ERA/IHS. Note: From 2007 value data has been revised due to methodology changes. Proportions rounded.

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RETAIL Shipments – physical formats

Retail market shipments £1,696

£1,478 £1,452 £1,406 £1,412 £1,376 £1,350 £1,441 £1,302 £1,214 270.3 260.8 252.0 253.5 245.2 242.0 £983 £912 £954 220.7 224.8 £803 214.5

£530 £547£528 179.3 179.2 180.1 £450 £474 £361 £399

137.5 123.1

98.4 96.1

78.8 80.0 73.8 66.0 60.0

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Volume: VHS DVD UMD HD-DVD Blu-ray Disc Value (million)

Source: Official Charts Company/BVA

• Total shipments up 0.5% 15.5 million. Retail Blu-ray Disc shipments for all other genres as a combined figure was up 29.5% • Total Blu-ray Disc shipments up 12.6% to 3.2 million, whilst their combined sales of 3.3 • Blu-ray Disc shipments, excluding Film, up million were up 31.1%. 29.5% However, during February and March shipments In 2013 there were an estimated 180.1 million of Film on DVD increased 47% and 27% video units shipped by distributors to UK respectively and shipments of Film on Blu-ray retailers, up 0.5%. With the 9.3% drop in physical Disc increased 210% and 39% in anticipation of retail volumes, it is surprising the level of the release of blockbusters such as Skyfall, The shipments increased, however there was wide Twilight Saga – Breaking Dawn Part 2 and The variation in formats and seasonality. Hobbit – An Unexpected Journey. This was at a time when HMV had recently (mid-January 2013) Shipments of Film on DVD for retail were up gone into administration and distributors were 0.8% to 113.3 million, despite sales falling 13.4% understandably more cautious, whilst keen to to 86.6 million units. However, DVD shipments to ensure the survival of one of their key retail retail for all other genres combined were down partners. 4.4% to 47.7 million, notwithstanding their combined sales of 56.6 million, which itself was Trade prices of Film on DVD fell 3.1% year on year, down 8.4%. although they were up 93% in February, whilst trade prices of Film on Blu-ray Disc for retail fell Retail shipments of Film on Blu-ray Disc were up 11% year on year but rose 130% in February 2013. 9.7% to 15.8 million, whilst sales were up 9.1% to

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Shipments – physical formats RETAIL

Shipments by format

DVD £1,582.7 £1,416.9 £1,459.8 £1,444.7 £1,341.2 £1,239.7 £1,148.8 £1,209.9 £1,120.3 267.1 245.3 £819.1 241.3 243.1 £788 £784 223.7 226.5 209.4 208.1

162.3 161 £415 151.2 £224 £56 93.4

44.4 21.7 5.8

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Blu-ray Disc £181.8 £168.5 £164.4 £166.7

19 £108.9 16.7 16.9 £67.4 15.2 10.0 £15.7 £0.2 5.4 1.3 Volume (million) Value (million) 0.02 2006 2007 2008 2009 2010 20112012 2013

Market share Volume Value DVD Blu-ray Other VHS DVD Blu-ray Other VHS 1999 6.0% 94% 1999 10.6% 89.4% 2000 17.6% 82.4% 2000 27.9% 72.1% 2001 32.3% 67.7% 2001 45.5% 54.5% 2002 52.1% 47.9% 2002 64.8% 35.4% 2003 70.5% 29.5% 2003 81.7% 18.3% 2004 85.8% 14.2% 2004 93.3% 6.7% 2005 94.9% 0.4% 4.8% 2005 98.3% 0.6% 1.1% 2006 98.4% 0.0% 0.5% 2006 99.5% 0.0% 0.4% 2007 98.8% 0.5% 0.5% 2007 98.4% 1.1% 0.5% 2008 97.3% 2.2% 0.5% 2008 95.0% 4.8% 0.3% 2009 95.9% 4.0% 0.1% 2009 91.8% 8.1% 0.1% 2010 93.6% 6.3% 0.1% 2010 87.7% 12.2% 0.0% 2011 92.6% 7.4% 2011 86% 14.0% 2012 90.6% 9.4% 2012 83.3% 16.7% 2013 89.8% 10.2% 2013 82.5% 17.5%

Source: Official Charts Company/BVA

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RETAIL Seasonality – physical formats

Retail seasonality by month 21.7%

21.4%

8.3% 8.6% 7.9% 7.9% 7.3% 7.3% 6.7% 6.4% 6.0% 6.2% 5.6%

8.4% 9.5% 7.5% 8.1% 8.6% 7.5% 6.3% 5.9% 5.7% 5.0% 6.0%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2013 Seasonality Average seasonality 2008-2012 % of volume sales

Retail seasonality by quarter

2008 23% 19% 18% 40%

2009 22% 19% 18% 41%

2010 23% 18% 19% 40%

2011 22% 20% 17% 41%

2012 22% 18% 18% 42%

2013 25% 19% 17% 39%

Q1 Q2 Q3 Q4 (value sales)

Source: Official Charts Company/BVA

• Q1 2013 out-performs average The most important part of the year is the Christmas gift-buying period with December • December accounts for fifth of sales accounting for a steady one fifth of all sales. The first quarter of 2013 out-performed the However, Q4 as a whole in 2013 accounted for average of the previous five years thanks to a 39% of value against an average of 41% for the very strong start to the year from titles such as previous five years, reflecting the tough trading Dredd, The Dark Knight Rises, The Twilight Saga conditions experienced by the market. – Breaking Dawn - Part Two, Madagascar 3 – Europe’s Most Wanted and the best-selling video of 2013, Skyfall, released in mid-February. Q1 accounted for 26% of volume against an average of 24%. Meanwhile, as can be seen from the chart above, it accounted for 25% of value against an average of 22% for the previous five years.

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Releases – physical formats RETAIL

Retail releases by genre

DVD 2013 Blu-ray 2013

Film 35% Film 62%

Sport & Fitness 14% Sport & Fitness 3%

Total TV 15% Total 5,825 1,671 TV 10% Music 15% Music 16% Special Interest 12% Special Interest 3% Children’s 8% Children’s 6%

DVD 2012 Blu-ray 2012

Film 38% Film 63%

Sport & Fitness 9% Sport & Fitness 2%

Total TV 13% Total 6,388 1,462 TV 8% Music 16% Music 16% Special Interest 14% Special Interest 4% Children’s 9% Children’s 6%

Source: West10 Entertainment

• Number of Blu-ray Disc releases increases Film dominates the video market, accounting for 14% 1,032 (a 62% share) of titles released on Blu-ray Disc, up from 925 in 2012. Meanwhile 2,011 (35%) • 148 titles released with UV code of DVD releases in 2013 were Film titles, down • Increase in TV titles on DVD and Blu-ray from 2,440 in 2012. Disc There were 866 TV titles released on DVD According to West10 Entertainment, who supply against 861 in 2012 with 159 on Blu-ray Disc, up data on video releases to retailers, the media and from 110 the year before. Sport & Fitness saw trade bodies such as the BVA, there were 5,825 another increase with 862 titles up from 579 in titles released on DVD in 2013, 9% fewer than in 2012 and 544 in 2011. 2012. Some of this fall was made up for by an Music fell from 1,038 titles released on DVD in increase in the number of titles released on Blu- 2012 to 898; Special Interest from 923 to 722 ray Disc, which rose by 14% to 1,671 in the year. titles; and Children’s from 547 to 455. Each saw Overall the total number of releases continues to marginal increase in the number released on Blu- reduce as back catalogues have already ray Disc. benefitted from an HD release and video companies are more selective of the product they Overall West10 Entertainment indicates that the are choosing to release. total library of titles ever released in the UK on DVD is 59,629 and 6,272 on Blu-ray Disc. Of Some 148 were released in the year with an these 425 have a UV code and 210 a digital copy. UltraViolet (UV) copy, while just 28 had some other format of digital copy included.

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RETAIL Genres – physical formats

Shares by genre - total video

Volume 2013 Value 2013

Film 63.1% Film 55.8%

Children’s 18.4% TV 23.7%

TV 13.4% Children’s 14.8% Special Interest 1.9% Special Interest 2.1% Music 1.8% Music 2.1% Sport & Fitness 1.4% Sport & Fitness 1.5%

Volume 2012 Value 2012

Film 64.0% Film 56.3%

Children’s 16.0% TV 24.1%

TV 13.9% Children’s 11.9% Special Interest 2.8% Special Interest 3.5% Music 1.7% Sport & Fitness 2.1% Sport & Fitness 1.6% Music 2.1%

Source: Official Charts Company/BVA

• Film represents two thirds of physical sales 7.6%. Average sales prices were up 3.4% in the year. • Children’s content grew 15% by value With little change to Film’s continued importance • TV content commands premium price in 2013, there is limited variation to the remaining 162.2 million physical discs were sold in 2013, genres year to year. Only one genre grew during down from 178.8 million in 2012, and one of the the year. Consumer demand for physical formats principle ways used to segment the market is by aimed at Children remains solid, growing 5% on genre. There are six main genres - Film, 2012 to 29.9 million and commanding a 10% Children’s, TV, Music, Sport & Fitness and Other, increase in average sales price, driving revenues also sometimes known as Special Interest which up over 15% to £212m. The formula followed by includes sub-categories like Live Comedy. Every Animated Films, comedy capers with stories and title that achieves a sale on DVD or Blu-ray Disc characters aimed at children that adults can also in the UK is classified into one of these genres by enjoy, is a successful one, with the target research company, Millward Brown (part of audience happy to enjoy again and again marketing services group WPP), on behalf of the meaning a higher consumer return on Official Charts Company. investment. The success of Universal’s Despicable Me and Despicable Me 2 and Walt Film content has always dominated the market, Disney’s Monsters University meant each routinely accounting for just under two thirds of appeared in the Top Ten All Video Physical Sales physical sales. The year 2013 saw Film claim 63% Chart and shows the genre has no respite for of volumes - pretty much in line with 2012 at physical discs despite the growth of digital 64%. In terms of value Film represents a smaller purchases and other forms of access. proportion of sales - 56% in 2013, the same as 2012. Over 102 million Film discs were sold in Whilst digital formats continue to grow, consumer 2013, down 10.6%, generating £803m, down demand for TV shows on DVD and Blu-ray Disc is

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Genres – physical formats RETAIL

Genre shares - 2013 DVD volume DVD value

Film 60.5% Film 51.3% Sport & Fitness 1.5% Sport & Fitness 1.7%

TV 14.4% TV 26.5%

Children’s 19.6% Children’s 15.8% Special Interest 2.0% Special Interest 2.5% Music 1.9% Music 2.3%

Blu-ray volume Blu-ray value

Film 82.3% Film 77.3% Sport & Fitness 0.4% Sport & Fitness 0.5%

TV 6.2% TV 10.6%

Children’s 9.3% Children’s 9.8% Special Interest 0.4% Special Interest 0.4% Music 1.4% Music 1.4%

Source: Official Charts Company/BVA

still strong at 21.8 million unit sales and, whilst The breakdown of format sales by genre reveals down 12%, still manages to hold a substantial some marked variation. Non-Film titles have 75% price premium over other genres at an grown their market share of DVD from 30% of average selling price of over £15, up 4%. volumes in 2008 to 39% in 2013. Children’s has proved particularly strong, growing from 11% to BBC Worldwide’s 2012 Olympic Games just under 20%. In terms of value, non-Film has topped the Sport & Fitness chart for the second grown less steeply from 45% in 2008 to 49%. year running but the genre saw sales volumes fall 20%, whilst Special Interest saw volumes fall In contrast, non-Film titles have grown their 40% despite the success of a duo of titles from market share of Blu-ray Disc from 13% of Mrs Brown’s Boys and the genre’s number one volumes in 2008 to 18% in 2013 and value share Micky Flanagan – Back In The Game Live from more steeply from 15% in 2008 to 23%. Blu-ray DVD. Disc is still dominated by Film, retaining 82% of sales, down from 85%. In terms of value, Music as a genre was down 5%, which could have however, Film represents 51% of DVD sales, down been more were it not for boy band One Direction from 52% in 2012, and 77% of Blu-ray Disc sales, and their release This Is Us, which accounted for down from 81% the previous year. 16% of all sales on its own. To put this in context, Skyfall, the best-selling video in 2013, accounted for just 3% of all Film sales.

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RETAIL Retailer shares – physical formats

Retailer market shares - 2013 Video DVD Blu-ray Video DVD Blu-ray Value Value Value Volume Volume Volume SUPERMARKETS 43.1 44.8 33.6 44.5 46.3 29.9 Tesco 16.4 16.9 13.1 16.9 17.6 11.1 Asda 12.9 13.3 10.7 12.6 12.9 9.9 Sainsbury’s 8.8 9 7.5 8.7 8.9 6.8 Morrisons 4.8 5.2 2.3 5.7 6.1 2.1 Other supermarkets 0.3 0.3 0 0.7 0.7 0 INTERNET 30.7 29.1 39.2 25.7 24.4 36.2 Amazon 20.6 20.1 23.4 16.3 15.9 20 Play 3.1 2.8 4.6 3.1 3 4.3 HMV Online 0.2 0.2 0.3 0.2 0.1 0.3 Tesco Online 1.2 1.2 1.7 0.9 0.9 1.4 Asda Online 0.3 0.3 0.3 0.3 0.3 0.3 Sainsbury’s Online 1.4 1.3 2 1.1 1 1.7 Other internet 3.9 3.3 6.9 3.7 3.2 8.3 MUSIC/VIDEO SPECIALISTS 20.5 20.5 20.6 20.6 20.2 23.8 HMV 19.5 19.4 20.2 18.8 18.3 23 Other Music/Video Specialists 1.0 1.1 0.4 1.8 1.9 0.8 GENERALIST 2.6 2.4 3.9 3.4 3 6.6 Blockbuster Video 1.4 1 3.3 2.3 1.8 6 WHSmith 0.9 1 0.3 0.7 0.8 0.3 Other Generalists 0.4 0.4 0.3 0.3 0.4 0.3 OTHER 2.0 2.3 0.3 3.8 4.1 0.5

52 weeks to 22/12/13. Please note some 2012 figures have been amended since the publication of the 2013 Yearbook Source: Kantar Worldpanel

• Amazon is the UK’s leading video retailer item in supermarkets. Buying in supermarkets can often be more of an impulse purchase and • Supermarkets are the leading video retail therefore they will lead with price-based category promotions on new releases and can command a • Supermarkets command higher prices for premium for those consumers who then decide Blu-ray Disc to trade up to the HD disc for their Blu-ray player. Supermarkets remain consumers’ preferred On the other hand video specialists account for source of discs, with this group of retailers 20.6% of Blu-ray Disc value and 23.8% of volume growing market share to 43.1% of value, up from as a result of this type of retailer competing on 38% in 2012. Meanwhile web-based retailers the HD format at a lower price than accounted for 30.7% of value, down from 32%, supermarkets. Purchases in these outlets tend to and video specialists accounted for 20.5%, down be planned or based on browsing. from 25% in 2012. The market has changed Amazon has the overall highest share of value significantly over recent years. In 2004 the video across all retailers, with 20.6% up from 18.3% in specialists accounted for 35%, the supermarkets 2012, followed by HMV with 19.5%, down from for 23% and web-based retailers accounted for 23%, and Tesco with 16.4% up from 14%. just 12% of market value. Blockbuster, who closed during 2013, only Differences are apparent between formats. accounted for 1.4%, although they had doubled Supermarkets account for 44.8% of DVD value their share over the previous year, but even back and 46.3% of volume as a result of their low- in 2004 had only accounted for 2.3% of retail price policies but the same retailers account for value, given their strength was in rental. 33.6% of Blu-ray Disc value and just 29.9% of volume, indicating Blu-ray Disc is a premium price

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RETAIL Company shares – physical formats

Company shares – total video 2013 Value Volume

Universal Pictures 15.0% 15.7%

Warner 14.8% Warner 14.1%

20th Century Fox 14.0% 20th Century Fox 13.8%

Walt Disney 9.1% Walt Disney 8.9%

Entertainment One 7.1% Sony Pictures 7.6%

Sony Pictures 6.8% Entertainment One 6.9%

Paramount 6.6% Elevation Sales 6.8%

Elevation Sales 5.7% Paramount 6.6%

BBC Worldwide 5.6% BBC Worldwide 4.6%

EIV 1.9% EIV 2.1%

Channel 4 DVD 1.4% Channel 4 DVD 1.1%

FremantleMedia 1.2% Signature Entertainment 1.1%

Anchor Bay 1.1% Anchor Bay 1.0%

Momentum Pictures 0.8% Momentum Pictures 0.9%

ITV Studios 0.8% FremantleMedia 0.8%

RLJ Entertainment 0.7% Metrodome 0.6%

Signature Entertainment 0.7% ITV Studios 0.6%

Metrodome 0.5% HiT Entertainment 0.6%

Universal Music 0.4% RLJ Entertainment 0.4%

Arrow Films 0.4% Universal Music 0.3% Source: Official Charts Company/BVA

• Universal Pictures retained market leadership Warner was overall second in the Company Value Chart, just 0.2% behind Universal, with an average • Top three positions the same as 2012 price up 6% and 5% above market average. The top three positions saw no change from 2012. 20th Century Fox, which led the charts up to the Universal Pictures retained its position of best- end of October due to the immense success of selling video company in 2013, claiming 15% of Skyfall, was third, increasing its market share from market value, down from 16.1% in 2012, and 15.7% 10.7% to 14.0%. of volume down from 16.5%. Having been in third place at the end of October, Universal had a Similarly to 2012, no other distributor reached particularly strong final two months of the year, double figures. Notable movers were with Despicable Me 2, The Class of ’92 and The Entertainment One, climbing from ninth to fifth World’s End each achieving sales in excess of £5m and increasing its market share value from 4.1% to in the key December selling period. Universal’s 7.1% driven by the continued success of The average sales price increased 1% against the Twilight Saga series; and Sony Pictures, which market average of 2.8% and was 5% below market climbed from eighth with 6.1% to sixth, with a average, whereas in 2012 it was 2% below. The market share of 6.8%. studio performed well, with two titles in the overall BBC Worldwide, who were fifth in 2012 with 7.1% Top 10, Les Misérables and Despicable Me 2, but its driven by sales of London 2012 Olympic Games, fell strength is also in its breadth, with three titles in to ninth with 5.6%, even though that title still the TV Top 10, dominating Special Interest with six topped the Sport & Fitness genre chart in 2013. titles, two in Music and one in the Sport & Fitness chart.

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Company shares – physical formats RETAIL

Company shares 2013 DVD Value DVD Volume

Universal Pictures 15.5% Universal Pictures 15.9%

Warner 13.8% Warner 13.6%

20th Century Fox 12.9% 20th Century Fox 13.3%

Walt Disney 8.9% Walt Disney 8.9%

Entertainment One 7.2% Sony Pictures 7.7%

Sony Pictures 7.0% Entertainment One 7.0%

BBC Worldwide 6.4% Elevation Sales 6.7%

Paramount 6.2% Paramount 6.4%

Elevation Sales 5.6% BBC Worldwide 5.0%

EIV 1.6% EIV 1.9%

Blu-ray Disc Value Blu-ray Disc Volume

Warner 19.4% 20th Century Fox 18.0%

20th Century Fox 19.1% Warner 17.8%

Universal Pictures 12.6% Universal Pictures 13.9%

Walt Disney 9.7% Walt Disney 9.1%

Paramount 8.4% Paramount 7.5%

Entertainment One 6.6% Elevation Sales 7.4%

Elevation Sales 6.2% Sony Pictures 6.6%

Sony Pictures 6.1% Entertainment One 6.6%

EIV 3.3% EIV 4.0%

BBC Worldwide 1.7% BBC Worldwide 1.6%

Source: Official Charts Company/BVA

• Universal Pictures retain market leadership a position it has held since the format’s launch in in DVD 2007. 20th Century Fox gained the largest share growth, retaining second position and increasing • 20th Century Fox gained the largest share its share from 15.8% to 19.1%, driven very much growth in Blu-ray Disc sector by the success of Skyfall. It also sold the most • Top 7 distributors increase their combined Blu-ray Discs, just outselling Warner by almost market share 24,000 units. Universal retained third place, though its share slipped from 13.6% to 12.6%. No Universal Pictures retained leadership of the other distributors reached double figures. £1.19bn DVD market with a 15.5% share, down from 16.5%. With DVD representing 82% of the In all, the top seven distributors claimed 73.4% total physical value, the DVD Company Top 10 is of total volumes, up from 71.7% in 2012 and near identical in ranking to the overall market. 70.7% in 2011. Whilst ninth in the Overall Chart, BBC Worldwide The merger of Entertainment One and was seventh in the DVD Chart. Meanwhile Momentum, and trading as Entertainment One, Channel 4 DVD missed out on a place in the Top was the only key structural change in the market. 10 by a mere £20k. Company shares of actual digital sales are not Warner retained leadership of the £252m Blu-ray currently available to the marketplace but the Disc market with a 19.4% share, up from 18.4%, BVA hopes to include this data in the future.

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RETAIL Overall video chart – physical formats

2013 video top 20 - all genres Volume Value

Pos Title Company Pos Title Company 1 Skyfall 20th Century Fox 1 Skyfall 20th Century Fox The Hobbit - An Unexpected The Hobbit - An Unexpected 2 Warner 2 Warner Journey Journey 3 Despicable Me 2 Universal Pictures 3 Despicable Me 2 Universal Pictures 4 Les Misérables Universal Pictures 4 Les Misérables Universal Pictures The Twilight Saga - Breaking Entertainment The Twilight Saga - Breaking Entertainment 5 5 Dawn - Pt 2 One Dawn - Pt 2 One Game Of Thrones - Complete 6 Monsters University Walt Disney 6 Warner 7 Star Trek - Into Darkness Paramount Second Season 7 Star Trek - Into Darkness Paramount 8 Django Unchained Sony Pictures 8 Taken 2 20th Century Fox 9 Iron Man 3 Walt Disney 9 Monsters University Walt Disney 10 Life Of Pi 20th Century Fox 10 Man Of Steel Warner 11 Taken 2 20th Century Fox 11 Fast & Furious 6 Universal Pictures 12 Man Of Steel Warner 12 Life of Pi 20th Century Fox 13 Fast & Furious 6 Universal Pictures 13 Django Unchained Sony Pictures 14 Despicable Me Universal Pictures 14 Iron Man 3 Walt Disney 15 Wreck-It Ralph Walt Disney Madagascar 3 - Europe's Most 15 Wreck-It Ralph Walt Disney 16 Paramount Wanted 16 A Good Day To Die Hard 20th Century Fox 17 The Croods 20th Century Fox Madagascar 3 - Europe's Most 17 Paramount 18 A Good Day To Die Hard 20th Century Fox Wanted 19 The Hunger Games Elevation Sales 18 The Croods 20th Century Fox 20 The Dark Knight Rises Warner 19 The Wolverine 20th Century Fox Game Of Thrones - Complete 20 Warner Seasons 1 & 2 Includes box-sets. Source: Official Charts Company/BVA

• Top 5 sold over one million each and six Children’s Animated Films. The highest ranked non-Film was Game of Thrones – • Top 20 all sold over 590k units each Complete Second Season at number 22. All titles 20th Century Fox’s Skyfall was the best-selling in the Top 20 made sales of over 590,000 units. video of 2013, achieving 2.96 million unit sales In 2013 each of the top five titles sold seven and generating over £34m, of which one third figures or more. There were 280 titles that sold was from Blu-ray Disc. This was 1 million units in excess of 100,000 units. more than the 2012 best-seller, The Dark Knight Rises, which continues to sell and ranks number 20th Century Fox lead the Top 20 with five titles, 42 this year. Skyfall was also released in a Daniel while Universal accounted for four and Walt Disney Craig 007 Triple Pack alongside Casino Royale and Warner had three titles each. Paramount had and Quantum of Solace, which sold 142,000 box- two titles. Sony, Elevation/Lionsgate and sets contributing a further £2.8m. Entertainment One had a single title each. The Hobbit – An Unexpected Journey from In terms of value, the make-up of the Top 20 was Warner was the second most popular title, with 2 very similar this time with Game of Thrones – million sales (£25m). Universal’s Les Misérables Complete Second Season making it into the value would have been third with 1.5 million (£16.5m) chart of 2013 at number six and sales of £3.7m but Despicable Me 2, another Universal title, from the box-set added to the £9.3m in single overtook it when combining 136,000 box-sets to disc sales. the title’s 1.4 million single disc sales. The same Each entrant in the Value Top 20 achieved at titles took the top three places by value. least £6.3m in retail sales. There were 224 titles The Top 20 by volume was made up of 14 Film that achieved sales of £1m or more.

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RETAIL DVD chart

2013 DVD top 20 – all genres Volume Value

Pos Title Company Pos Title Company 1 Skyfall 20th Century Fox 1 Skyfall 20th Century Fox The Hobbit - An Unexpected The Hobbit - An Unexpected 2 Warner 2 Warner Journey Journey The Twilight Saga - Breaking Entertainment 3 Despicable Me 2 Universal Pictures 3 The Twilight Saga - Breaking Entertainment Dawn - Pt 2 One 4 Dawn - Pt 2 One 4 Despicable Me 2 Universal Pictures 5 Les Misérables Universal Pictures 5 Les Misérables Universal Pictures 6 Monsters University Walt Disney Game Of Thrones - Complete 6 Warner 7 Despicable Me Universal Pictures Second Season 8 Taken 2 20th Century Fox 7 Monsters University Walt Disney 9 Django Unchained Sony Pictures 8 Star Trek - Into Darkness Paramount 10 Life Of Pi 20th Century Fox 9 Taken 2 20th Century Fox 11 Star Trek - Into Darkness Paramount 10 Iron Man 3 Walt Disney 12 Iron Man 3 Walt Disney 11 Fast & Furious 6 Universal Pictures 13 Wreck-It Ralph Walt Disney 12 Life of Pi 20th Century Fox 14 Fast & Furious 6 Universal Pictures 13 Django Unchained Sony Pictures Madagascar 3 - Europe's Most Madagascar 3 - Europe's Most 15 Paramount 14 Paramount Wanted Wanted 16 The Croods 20th Century Fox 15 The Croods 20th Century Fox 17 The Hunger Games Elevation Sales 16 Wreck-It Ralph Walt Disney 18 Man Of Steel Warner 17 Man Of Steel Warner 19 Pitch Perfect Universal Pictures 18 The Class Of '92 Universal Pictures Mrs Brown's Boys - Series 20 A Good Day To Die Hard 20th Century Fox 19 Universal Pictures Three Micky Flanagan - Back In The 20 Channel 4 DVD Game - Live

Includes box-sets. Source: Official Charts Company/BVA

• 143 million DVDs sold The majority of titles in the DVD Top 20 chart continue to be very similar to the overall video • DVD accounted for 88% of all physical sales chart, with Pitch Perfect the only title not making • Skyfall generated £24.6m in DVD sales it into the overall Top 20 value chart. DVD accounts for 88% of total physical volumes, Nineteen titles in the DVD Top 20 by volume sold down from 91% the year before, and 82% of over 500,000 copies, while five broke the one value, down from 85%. The falls are due to the million barrier but only Skyfall broke the two 11.5% drop in DVD sales volumes and the 12.4% million level. There were 250 titles that sold in growth in Blu-ray Disc. excess of 100,000 copies, including their box- sets. In line with the overall physical market chart, Skyfall was the best-selling DVD of 2013, the 2.2 In terms of the value Top 20, all the titles sold million sales boosted by a further 98,000 copies over £4.9m whilst in 2012 they all had to achieve of the Daniel Craig box-set. By comparison, the £6.5m to gain a place. Six titles sold in excess of top-selling DVD in 2012 was The Dark Knight £10m. Rises, selling 1.4 million copies on the format. Box-sets had an impact on overall DVD value The Hobbit – An Unexpected Journey came chart positions, with more than half lifted by the second, selling 1.5 million, whilst Despicable Me addition of the variant. As an example of how 2, with 1.26 million sales and a further 114,000 charts can be influenced, Game of Thrones – box-sets, took third place in the DVD chart by just Complete Second Season, 57th in the overall 4,000 units. video chart by volume, came sixth in the DVD chart by value, thanks to the inclusion of box-set revenue. 42 BVA YB 14 Inner AW 27/05/2014 16:41 Page 43

Blu-ray Disc chart RETAIL

2013 Blu-ray Disc top 20 - all genres Volume Value

Pos Title Company Pos Title Company 1 Skyfall 20th Century Fox 1 Skyfall 20th Century Fox The Hobbit - An Unexpected The Hobbit - An Unexpected 2 Warner 2 Warner Journey Journey 3 Star Trek - Into Darkness Paramount 3 Star Trek - Into Darkness Paramount 4 Fast & Furious 6 Warner 4 Taken 2 Walt Disney 5 Man Of Steel Warner 5 Fast & Furious 6 Warner 6 Taken 2 Walt Disney 6 Man Of Steel Warner The Twilight Saga - Breaking Game Of Thrones - Complete 7 Universal Pictures 7 Warner Dawn - Pt 2 Second Season The Twilight Saga - Breaking 8 Les Misérables Universal Pictures 8 Universal Pictures 9 Iron Man 3 Walt Disney Dawn - Pt 2 9 Les Misérables Universal Pictures 10 Django Unchained Sony Pictures 10 Life of Pi 20th Century Fox 11 Pacific Rim Warner 11 Pacific Rim Warner 12 Life of Pi 20th Century Fox 12 Despicable Me 2 Universal Pictures 13 Dredd EIV 13 The Wolverine 20th Century Fox 14 Despicable Me 2 Universal Pictures 14 Iron Man 3 Sony Pictures 15 The Wolverine 20th Century Fox 15 Django Unchained Sony Pictures 16 A Good Day To Die Hard 20th Century Fox The Lord of the Rings - Return The Lord of the Rings - Return 16 EIV 17 EIV of the King of the King 17 Dredd EIV 18 World War Z Paramount 18 World War Z Paramount 19 Oblivion Universal Pictures Entertainment 19 A Good Day To Die Hard 20th Century Fox 20 Looper Star Wars - The Complete One 20 20th Century Fox Saga Includes box-sets. Source: Official Charts Company/BVA

• Blu-ray Disc represents 18% of physical boosted by a further 29,000 from the associated disc market value box-set. • Revenues up 10% to £252m New releases on Blu-ray Disc had a particularly good year as unit sales rose 20% year on year • New release volumes up 20% and revenues grew 15%. Catalogue fared less well • One in four pounds spent on Films is on but volume sales were still up 7.2%. Blu-ray Disc The HD format lends itself particularly to action The expression Blu-ray Disc refers to the blue titles, with £195m, one in four pounds, spent on laser used to read the disc, which allows Blu-ray Disc when consumers purchase a film in information to be stored at a greater density than physical format. Consumers also spent some is possible with the longer-wavelength red laser £25m on Blu-ray Discs when buying Children’s used for DVDs. The high-definition optical disc titles, almost exclusively animated film. format now represents a healthy 18% of the Warner retained the number one spot, with 19.4% physical disc market value, up 10% year on year. of the £252m Blu-ray Disc market, closely Skyfall made it a hat-trick topping the 2013 Blu- followed by 20th Century Fox with 19.1%. ray Disc chart as well as the overall video chart Universal was third with a 12.6% share. and DVD chart. 760,000 units were bought on Consumers are still quite discerning about the Blu-ray Disc, generating £11.5m in retail sales, content they want to own on Blu-ray Disc. They plus a further £1.1m from 44,000 sales of the choose product which they feel merits the Daniel Craig Triple Pack. premium HD experience and this drives supply, Warner’s The Hobbit – An Unexpected Journey with not all titles released on Blu-ray Disc. Some was second, with 584,000 unit sales, whilst in 50% of the top 5,000 titles sold in 2013 were not third place was Star Trek – Into Darkness from available on Blu-ray Disc. Paramount with 330,000 sales, the latter being

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RETAIL Feature film – physical formats

2013 video top 20 - film Volume Value

Pos Title Company Pos Title Company 1 Skyfall 20th Century Fox 1 Skyfall 20th Century Fox The Hobbit - An Unexpected The Hobbit - An Unexpected 2 Warner 2 Warner Journey Journey The Twilight Saga - Breaking 3 Les Misérables Universal Pictures 3 Entertainment One The Twilight Saga - Breaking Dawn - Pt 2 4 Entertainment One Dawn - Pt 2 4 Les Misérables Universal Pictures 5 Star Trek - Into Darkness Paramount 5 Star Trek - Into Darkness Paramount 6 Django Unchained Sony Pictures 6 Iron Man 3 Walt Disney 7 Taken 2 20th Century Fox 7 Man Of Steel Warner 8 Life Of Pi 20th Century Fox 8 Life Of Pi 20th Century Fox 9 Iron Man 3 Walt Disney 9 Taken 2 20th Century Fox 10 Man Of Steel Warner 10 Fast & Furious 6 Universal Pictures 11 Fast & Furious 6 Universal Pictures 11 Django Unchained Sony Pictures 12 The Wolverine 20th Century Fox 12 The Wolverine 20th Century Fox 13 A Good Day To Die Hard 20th Century Fox 13 A Good Day To Die Hard 20th Century Fox 14 The Hunger Games Elevation Sales 14 The Dark Knight Rises Warner 15 Pitch Perfect Universal Pictures 15 World War Z Paramount Harry Potter and the Deathly 16 Argo Warner 16 Warner 17 World War Z Paramount Hallows - Part 2 17 Pacific Rim Warner 18 Looper Entertainment One 18 The Hangover Pt 3 Warner 19 Dredd EIV 19 Looper Entertainment One 20 The Impossible Entertainment One 20 The Class of ‘92 Universal Pictures

Includes box-sets. Source: Official Charts Company/BVA

• Four films each sell more than 1 million on which sold 1.5 million copies for £16.5 million disc without the help of any box-set additions. Another franchise was third in the Film genre • Seven films take more than £10 million chart, with The Twilight Saga Breaking Dawn – each Part 2 from eOne achieving 1.2 million sales and • Blu-ray average prices double those of DVD a further 200,000 from the box-set taking total revenue to £18 million. The twenty-third James Bond film, Skyfall, became the best-selling Film on disc in 2013 with There were no other titles that breached the one sales of 2.6 million worth over £34 million plus million unit sales barrier but several others took 142,000 units of the Daniel Craig 007 Triple Pack more than £10 million, including Paramount’s contributing a further £2.8 million for 20th Star Trek – Into Darkness (£12.2 million), Walt Century Fox. The film, released theatrically in Disney’s Iron Man 3 and Warner’s Man Of Steel. the UK in October 2012, 50 years after the first The average sales price (ASP) for Film on DVD Bond film Dr. No, won two Oscars and took over was £7.00 and on Blu-ray Disc it was £12.59 $1.1 billion worldwide in cinemas. It took £100 showing the premium value that the HD format million in UK cinemas, the most successful can command. However some titles are able to theatrical release of all time. achieve significantly more. The Bond 50 box-set The first film in Warner’s The Hobbit trilogy, The of 22 films achieved a price of £47 on DVD whilst, Hobbit – An Unexpected Journey, achieved sales excluding box-sets, the highest ASP by a single of two million discs and revenue of £24.6 million, title on DVD was The Class of ’92 with £11.65. On with the second instalment, The Desolation of Blu-ray Disc Bond 50 was also the highest ASP at Smaug, set for release on disc during 2014. £84.50 whilst The Watch as a single title achieved £17.45. In third place was Universal’s Les Misérables

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Feature film – physical formats RETAIL

Company shares – film 2013 Value Volume

18.2% 17.3% 15.9% 15.6% 14.7% 14.1%

10.7% 9.5% 9.1% 9.2% 8.7% 7.5% 7.1% 6.8% 4.9% 4.9% 3.5% 3.4% 1.4% 1.6%

20th Century Warner Universal PicturesEntertain Elevation Sales Sony P Paramount Walt Disney EIV Momentum 20th Century FoxWarner Universal PicturesElevation Sa Entertainment OneSony Pictures Paramount Walt Disney EIV Signature Entertainment

ictures

ment One

les Fox

Sales breakdown by film genre 2013 Volume Action/Adventure 24.6% Comedy 22.0% Drama 16.1% Family 9.8% Thriller 8.3% Sci-Fi 7.8% Horror 5.4% War 2.4% Musical 2.1% Western 0.7% Documentary 0.6% Anime 0.2% Adult 0.1% • Over 100 million Film titles sold

• 20th Century Fox tops the Film genre Source: Official Charts Company/BVA company chart • Action & Adventure the most popular type of Film 20th Century Fox was the most successful with 16 million units and Universal third with 15 distributor of the Film genre of 2013, taking the million. No other distributors sold more than 10 crown from Warner who had held it for the million units of Film titles during 2013. previous two years, achieving £145.9 million, or Film consistently accounts for over 60% of 18.2% of retail sales value. Fox claimed the best- volumes sold in the physical market, some 63% selling Film of the year with Skyfall and had four in 2013, so Film sub-genres take on more other titles in the value Top 20, including Life of significance and their performance is determined Pi, Taken 2, The Wolverine and A Good Day To Die by the new releases in any particular year. In 2013 Hard. over 25 million units of Film on discs sold were Warner came second with £128 million thanks to Action & Adventure titles, driven by the success six entries in the value Top 20, including The of 007, equating to 25% of all Film and 15% of all Hobbit – An Unexpected Journey, which was the video. Comedy accounted for 22% of Film and second highest grossing title on disc in the Film 13.5% of all video sold in a physical format. genre in 2013. Universal was the only other Although Bollywood Films are very popular they distributor that achieved more than £100 million do not appear to achieve market share, nor are in Film with £113 million. there titles in the charts, most likely due to their 20th Century Fox also sold the highest volume in niche distribution channels which are not picked the Film genre with 17.7 million units, or 17.3% of up by Official Charts Company. market volume share. Warner was again second

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RETAIL Children’s – physical formats

2013 video top 20 - children’s Volume Value

Pos Title Company Pos Title Company 1 Despicable Me 2 Universal Pictures 1 Despicable Me 2 Universal Pictures 2 Monsters University Walt Disney 2 Monsters University Walt Disney Madagascar 3 - Europe's Most 3 Despicable Me Universal Pictures 3 Paramount 4 Wreck-It Ralph Walt Disney Wanted Madagascar 3 - Europe's Most 4 Wreck-It Ralph Walt Disney 5 Paramount Wanted 5 The Croods 20th Century Fox 6 The Croods 20th Century Fox 6 Rise Of The Guardians Paramount 7 Rise Of The Guardians Paramount 7 Despicable Me Universal Pictures 8 Brave Walt Disney 8 Brave Walt Disney 9 The Jungle Book Walt Disney 9 The Jungle Book Walt Disney 10 Hotel Transylvania 20th Century Fox 10 Epic 20th Century Fox 11 Epic 20th Century Fox 11 The Little Mermaid Walt Disney 12 Rio 20th Century Fox 12 Hotel Transylvania 20th Century Fox 13 Ice Age 4 - Continental Drift 20th Century Fox 13 Ice Age 4 - Continental Drift 20th Century Fox 14 The Little Mermaid Walt Disney 14 Planes Walt Disney 15 Planes Walt Disney 15 Paranorman Universal Pictures Cloudy With A Chance Of 16 Sony Pictures 16 Cinderella Walt Disney Meatballs 17 Monsters Inc Walt Disney 17 Dr Seuss - The Lorax Universal Pictures 18 Tinkerbell and the Secret Wings Walt Disney 18 Paranorman Universal Pictures 19 Tangled Walt Disney 19 The Smurfs - A Christmas Carol Sony Pictures 20 Peter Pan Walt Disney 20 Cinderella Walt Disney Includes box-sets. Source: Official Charts Company/BVA

• Animated film leads original title, Monsters Inc, best seller in 2002, was 24th in 2013 with sales of 195,000 and • Franchises dominate cumulatively has sold 4.4 million. • Demand for catalogue continues Feature-length animations dominate these charts Despicable Me 2, distributed by Universal again, with 19 of the top 20 titles starting out in Pictures, was the best-selling Children’s video in the cinema, the exception being The Smurfs – A 2013, selling 1.4 million copies worth £16.4m in Christmas Carol from Sony Pictures. The Top 20 retail sales, plus a further 100,000 of the is not however exclusively new release, as three associated box-set including the original title, classic titles, all from Walt Disney, were first worth a further £2.5 million. The video was released decades ago: The Jungle Book sold released on 25 November 2013 and therefore 400,000 copies and has sold 2.8 million made all these sales in five weeks before the end cumulatively; The Little Mermaid sold 300,000 of the year and was the third highest selling video units and has 1.7 million cumulative sales; and across all genres in 2013. The original title, Cinderella sold 242,000 units and has sold 2.3 Despicable Me, best seller in 2011, was third in million since release, showing the enduring 2013 with sales of 820,000 and cumulatively has quality of animated film and the demand for sold 2.6 million. The franchise releases the next Disney classics in physical format by each new in the series, Despicable Me 3, in 2017. generation. Sandwiched between the two titles above was All the titles in the Children’s Top 20 by volume Walt Disney’s Monsters University, second sold over 240,000 copies and in the value list highest Children’s video in 2013 with sales of sold over £1.7 million in retail sales in 2013, 968,000 and a further 20,000 of the associated meaning the threshold to enter the chart was box-set which included the original title. The higher for both volume and value than in 2012.

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Children’s – physical formats RETAIL

Company shares – children’s 2013 Value Volume 38.3% 30.0%

18.7% 17.3% 11.9% 9.9% 9.5% 9.4% 9.3% 7.1% 5.6% 4.1% 3.2% 4.4% 2.2% 1.8% 1.5% 3.3% 2.5% 2.2%

Walt DisneyUniversal ParPicturesamount20th CenturyWar Foxner Sony PictEnteuresrtainmHiTent Entertainment One BBC WorldwiElevadetion Sales Walt DisneyUniversal WarPicturesner 20th CenturyParamount Fox Sony PictEntertaiures nmeHiTnt Entertai One Elevatnmention BBSaCles Worldwide

2013 school age top 10 2013 pre-school top 10 Volume Volume Pos Title Company Pos Title Company Peppa Pig - The Holiday & 1 The Smurfs - A Christmas Carol Sony Pictures 1 Entertainment One Other Stories 2 Ice Age - A Mammoth Christmas 20th Century Fox 2 Peppa Pig - Princess Peppa Entertainment One Thomas & Friends - King Of 3 Scooby-Doo - Meets Batman Warner 3 HiT Entertainment Star Wars Lego - The Empire The Railway 4 Paramount Strikes Out 4 Peppa Pig - Champion Daddy Pig Entertainment One 5 The Snowman Universal Pictures 5 Peppa Pig - The Christmas Show Entertainment One 6 Barbie In The Pink Shoes Universal Pictures 6 Peppa Pig - Fire Engine & Other Stories Entertainment One Monster High - Friday Night 7 Universal Pictures 7 Peppa Pig - A Christmas Compilation Entertainment One Frights/Why 8 Something Special - Out And About Sony Pictures Mickey Mouse Clubhouse - 8 Walt Disney Storybook 9 Peppa Pig - Bubbles & Other Stories Entertainment One 9 Lego Batman Warner 10 Peppa Pig - Queen - Royal Compilation Entertainment One 10 Scooby-Doo - Pirates Ahoy Warner from fifth to second place as a result of having three titles in the Top 20, up from two titles in Sales breakdown by sector 2013 2012. It also raised its volume share from 10.7% to 17.3%. Animated film 55.5% Paramount retained third place with a reduced share of 9.9%, its highest placed title being Rise of the Guardians at Number 6, and 20th Century School age 31.9% Fox retained fourth place with 9.5%, the same share as in 2012. It had four titles in the Top 20: The Croods, Epic, Hotel Transylvania and Ice Age 4. Pre-school 12.6% Warner fell from second to fifth with its value

Source: Official Charts Company/BVA share falling from 11.4% in 2012 to 7.1%. Its highest placed title was the 2005 release Polar Despite missing out on the top spot in the Express at Number 32. Children’s chart, Walt Disney Studios remained The Children’s genre consists of three types of the best-selling Children’s video company in 2013, content: Animated Film which starts life in the a position it has held since BVA records began. cinema, Pre-School and School Age. Animated It claimed 30% of all volumes sold and 38% of Film dominates sales due to its wide appeal and value, up slightly on 2012. Walt Disney continues represented 56% of volume in 2013, whilst to achieve a significantly higher share of business School Age accounted for 32%, down from 37% by value, driven by the above-average price it in 2012, and Pre-school titles accounted for 13%, commands overall for its product. virtually in line with 2012. The higher price of Universal performed very strongly with its value Animated Film ensured the sub-genre accounted share doubling from 9.2% to 18.7%, climbing for 68% of share by value.

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RETAIL Music – physical formats

2013 video top 20 - Music Volume Value Pos Title Artist Company Pos Title Artist Company Sony Sony 1 This Is Us One Direction 1 This Is Us One Direction Pictures Pictures Les Misérables - In Original Cast Universal The Stone Channel 4 2 2 Made Of Stone Concert Recording Pictures Roses DVD BBC BBC 3 Life Is But A Dream Beyoncé 3 Life Is But A Dream Beyoncé Worldwide Worldwide The Stone Channel 4 Les Misérables - In Original Cast Universal 4 Made Of Stone 4 Roses DVD Concert Recording Pictures Sweet Summer Sun - The Rolling Eagle Universal 5 5 History Of The Eagles The Eagles Hyde Park Live Stones Rock Music One Night At The Robbie BBC Sweet Summer Sun - The Rolling Eagle 6 6 Palladium Williams Worldwide Hyde Park Live Stones Rock Universal Still Reelin' And A- Universal 7 History Of The Eagles The Eagles 7 Cliff Richard Music Rockin' - Live Pictures Still Reelin' And A- Universal One Night At The Robbie BBC 8 Cliff Richard 8 Rockin' - Live Pictures Palladium Williams Worldwide Universal Searching For Sugar Elevation 9 Happy Birthday André Rieu 9 Rodriguez Music Man Sales Entertainment Universal 10 The Only Way Is Up One Direction 10 Happy Birthday André Rieu One Music Searching For Sugar Elevation Live At The Royal Universal 11 Rodriguez 11 Emeli Sandé Man Sales Albert Hall Music The War Of The Worlds - Jeff Wayne/ Universal The War Of The Worlds - Jeff Wayne/ Universal 12 12 New Generation Cast Recording Pictures New Generation Cast Recording Pictures Live At The Royal Universal Goodbye - The BBC 13 Emeli Sandé 13 JLS Albert Hall Music Greatest Hits Tour Worldwide Anchor André Rieu & Universal 14 Going Our Way One Direction 14 Live In Brazil Bay JS Orchestra Music Warner André Rieu & Universal 15 Live 2012 Coldplay 15 Live In Maastricht Music Friends Music Katy Perry - Warner 16 Katy Perry Paramount 16 Live 2012 Coldplay Part Of Me Music André Rieu & Universal Original 20th 17 Live In Maastricht 17 Shrek The Musical Friends Music Broadway Cast Century Fox Universal Christmas Around The André Rieu & Universal 18 Marley Bob Marley 18 Pictures World/The Christmas JS Orchestra Music The Farewell Tour - BBC Rieu Royale - Universal 19 Westlife 19 André Rieu Live At Croke Park Worldwide Coronation Concert Live Music André Rieu & Universal Universal 20 Live In Brazil 20 Live Gary Barlow JS Orchestra Music Music

Source: Official Charts Company/BVA

• One Direction account for 23% of all music André Rieu, the Dutch violinist, conductor and video sales composer, and top-selling music video artist in 2012 with 8.7% of all sales, was second with a One Direction, the pop boy band that finished slightly reduced share of 7.8%, achieving 189,000 third on X Factor in 2010, were the top-selling sales overall and three titles in the Top 20 Chart Music Video Artist, dominating the charts with either as a solo artist or accompanied. 23% of all sales during 2013 and three titles in Interestingly, Rieu records both DVD and CD the Top 20 Chart – from three different repertoire at his own recording studios in distributors. 1D, as they are known, took Number Maastricht and for two weeks in 2013 the satellite One Chart position with This Is Us selling 391,000 TV channel, 2, was renamed Sky Arts units, 16% of all Music video sales, despite only Rieu in his honour. being released on 19th December and therefore on sale for just 10 days of 2013. The original cast recording of Les Misérables – In

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Music – physical formats RETAIL

Company shares – music 2013 Value Volume

Universal Music 19.7% Universal Music 16.6%

Sony Pictures 14.0% Sony Pictures 13.7%

Universal Pictures 10.1% Universal Pictures 12.7%

Eagle Rock 9.7% Eagle Rock 9.2%

BBC Worldwide 7.4% BBC Worldwide 6.8% Sony Music 5.4% Sony Music 6.5%

Channel 4 DVD 3.1% Channel 4 DVD 2.4%

Warner Music 2.3% Anchor Bay 2.4%

EMI Music 2.0% EMI Music 2.0%

Opus 2.0% Paramount 1.9%

Top-selling music artists – 2013 Volume

One Direction 23.3%

André Rieu 7.8%

Les Misérables Cast 5.2% Music Video company of 2013, with 19.7% share,

Beyoncé 3.2% up from 17.8% in 2012, taking top spot from Comcast-owned Universal Pictures, who were Rolling Stones 2.8% third with a reduced market share, falling from Stone Roses 2.8% 17.8% to 12.7%. EMI Music, who were third in 2012 Cliff Richard 2.1% with 9.6%, were taken over by Universal Music Robbie Williams 2.0% during the year, but the latter had to sell off some Eagles 2.0% of the firm’s most valuable labels as the

Jeff Wayne 1.7% competition authorities imposed conditions which led to the loss of artists such as Coldplay, who were Number 15 in the chart with Live 2012, having moved to Warner Music. Source: Official Charts Company/BVA Sandwiched between the two Universal-branded companies was Sony Pictures with 14.0%, benefiting from One Direction’s This Is Us, their Concert, The 25th Anniversary was second in the only title in the Top 20 Chart. Meanwhile Sony Top 20 Chart with 125,000 sales, up from twelfth Music fell from fifth place with 7.4% to sixth with in 2012, complementing the success of the other 5.4%, not claiming any title in the Top 20 Chart. remake of the show of the same name, which Eagle Rock moved up from sixth with 5.5% to starred Hugh Jackman, in the Overall Chart. The fourth with 9.7% on the back of The Rolling In Concert music video has now sold 719,000 Stones’ Sweet Summer Sun: Hyde Park Live units since it was originally released in November chronicling the band’s historic and triumphant 2010. return to London’s Hyde Park with a 2-hour live Life Is But A Dream, a look at the life and music concert and backstage footage. Former guitarist of American singer- Beyoncé Knowles, Mick Taylor – whose live debut with the Stones who was Co-Director and Executive Producer of took place at the original 1969 Hyde Park concert the film, was third in the chart, with 71,000 units, – joined the band on stage as guest in front of followed by another fly-on-the-wall, Made Of 100,000 fans to celebrate their 50th year in the Stone, from The Stone Roses, documenting the music industry. reunion of the iconic 1980s Manchester rock Channel 4 DVD entered the Top 10 Music Video band, with 68,000 discs sold. No other titles sold Company in 7th place with 3.1% share helped by more than 50,000 units. the Stone Roses documentary. Vivendi-owned Universal Music, who include André Rieu in their stable, was the best-selling

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RETAIL Sport – physical formats

2013 video top 10 - sport Volume Value Pos Title Company Pos Title Company 1 London 2012 Olympic Games BBC Worldwide 1 London 2012 Olympic Games BBC Worldwide The British & Irish Lions 2013 The British & Irish Lions 2013 2 Lace 2 Lace - Raw - Raw The British & Irish Lions Tour The British & Irish Lions 2013 3 Lace 3 Lace 2013 - Official Highlights - Complete Collection Wimbledon - Gentlemen's The British & Irish Lions Tour 4 Good Guys Media 4 Lace Final 2013 2013 - Official Highlights Manchester United - 5 PDI Media 5 WWE - Wrestlemania 29 FremantleMedia Champions 2013 Manchester United - 6 PDI Media 6 WWE - Wrestlemania 29 FremantleMedia Champions 2013 The British & Irish Lions 2013 Wimbledon - Gentlemen's 7 Lace 7 Good Guys Media - Complete Collection Final 2013 8 WWE - Royal Rumble 2013 FremantleMedia 8 WWE - Royal Rumble 2013 FremantleMedia London 2012 Paralympic 9 Channel 4 DVD 9 WWE - Top 100 Raw Moments FremantleMedia Games 10 F1 2012 - Season Review Metrodome 10 F1 2012 - Season Review Metrodome Company shares – sport 2013 Value Volume

BBC Worldwide 19.8% Lace 19.8%

Lace 16.8% FremantleMedia 19.4%

FremantleMedia 14.1% BBC Worldwide 18.9%

Clear Vision 13.9% Clear Vision 11.4%

Go Entertain 5.1% Go Entertain 4.8%

ILC Media 5.1% ILC Media 3.9%

Duke 3.1% Duke 3.2%

Good Guys Media 2.8% Good Guys Media 2.7%

PDI Media 2.7% PDI Media 2.5%

Universal Pictures 1.9% Universal Pictures 1.3%

Source: Official Charts Company/BVA

• London 2012 retains No. 1 position 2013 also saw the end of an era when Sir Alex Ferguson retired as Manager of Manchester • British achievements top sport charts United Football Club. During his 26 years at the With London hosting the Olympic and Paralympic club Sir Alex won 38 trophies including 13 Games in 2012, 2013 had a lot to live up to. Premier League titles and two UEFA Champions ‘Legacy’ became the new buzz word as the League titles. positive repercussions from hosting the Games It is these four events that came to lead the chart were felt across the UK, encouraging people positions for Sports video content in physical across the UK to get more involved in sport. format in 2013. London 2012 Olympic Games from Away from the London Olympics, the British and BBC Worldwide topped the charts again with sales Irish Lions toured Hong Kong and Australia, of 174,000, followed by The British and Irish Lions winning the test matches down under 1-2, whilst 2013 – Raw, a behind-the-scenes documentary Andy Murray became the first Briton to become into the touring team, and The British and Irish the Gentlemen’s Singles Champion in the ‘open Lions 2013 – Official Highlights, both from Lace era’ and the only male British player to win the Digital Media Sales. In fourth and fifth place were Championship since Fred Perry in 1936. Wimbledon – The Gentlemen’s Final 2013 and Manchester United – Champions 2013.

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RETAIL

2013 video top 10 - fitness Volume Value Pos Title Company Pos Title Company 1 Jillian Michaels - 30 Day Shred Elevation/Lionsgate 1 's 30 Second Slim Universal Pictures 2 Josie Gibson's 30 Second Slim Universal Pictures 2 Jillian Michaels - 30 Day Shred Elevation/Lionsgate Davina - Intense - A New Way Davina - Intense - A New Way 3 BBC Worldwide 3 BBC Worldwide Of Training Of Training 10 Minute Solution - Blast Off Jillian Michaels - The Collection Elevation/ 4 Anchor Bay 4 Belly Fat Lionsgate 5 David Haye's Box & Tone Lace 5 David Haye's Box & Tone Lace Insanity 60-Day Total Body 6 Davina - Ultimate Target BBC Worldwide 6 Beachbody 10 Minute Solution - Pilates Conditioning 7 Anchor Bay Perfect 7 Davina - Ultimate Target BBC Worldwide Jillian Michaels - The Collection Elevation/ 10 Minute Solution - Blast Off 8 8 Anchor Bay Lionsgate Belly Fat 9 10 Minute Solution - Pilates Anchor Bay 9 Darcey Bussell - Pilates For Life Universal Music 10 Minute Solution - Belly 10 Anchor Bay 10 Davina - Fit in 15 BBC Worldwide Butt & Thigh

Company shares – fitness 2013 Value Volume

Universal Pictures 19.1% Anchor Bay 22.2%

BBC Worldwide 17.6% Elevation Sales 19.1%

Elevation Sales 15.7% BBC Worldwide 15.5%

Anchor Bay 12.8% Universal Pictures 14.1%

RLJ Entertainment 7.2% RLJ Entertainment 6.7%

Lace 2.6% Lace 2.1%

Beachbody 2.0% FremantleMedia 1.6%

EMI Music 1.8% ITV Studios 1.4%

Body In Balance 1.5% Ministry Of Sound Group 1.4%

FremantleMedia 1.4% Clear Vision 1.3% Source: Official Charts Company/BVA

• Sub-genre continues to be celebrity-led The price range in the sub-genre is surprisingly wide, with the 10-disc set Insanity 60-Day Total • Wide price range from £1.42 to £106 Body Conditioning achieving a £106 price tag • Universal Pictures increases market share (and selling over 1,800 copies) and some titles selling for less than £2. Of the 406 releases that Jillian Michaels’ 30 Day Shred retained top made a sale in 2013, over 25% commanded in position, with her 2008 title selling 157,000 excess of £10, including box-set titles, whilst 28% copies in 2013, bringing cumulative sales to were sold for less than a fiver. 429,000 since release. The Elevation Sales/Lionsgate title sells for around £5.60. All the titles in the Top 10 by volume sold 16,750 Meanwhile, Universal’s Josie Gibson’s 30 Second units or more in 2012, whilst in 2013 it was 11,650. Slim in second place sold 125,000 at around In fact only thirteen titles sold more than 1,000 £12.60, thus generating near double the revenue. units. Davina McCall continued her success in the sub- Anchor Bay continues to sell the most units but genre with a new release Davina – Intense – A its market share reduced from 28.4% to 22.2%, New Way of Training, also achieving a price whilst Universal came from fourth place by value premium at over £13. in 2012 to top position, nearly doubling its share of market.

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RETAIL TV – physical formats

2013 video top 20 - TV Volume Value Pos Title Company Pos Title Company Game Of Thrones - Complete Game Of Thrones - Complete 1 Warner 1 Warner Second Season Second Season The Big Bang Theory - 2 Top Gear - The Perfect Road Trip BBC Worldwide 2 Warner Complete Season 6 3 Mrs Brown's Boys - Series Three Universal Pictures 3 Mrs Brown's Boys - Series Three Universal Pictures 4 Mrs Brown's Boys - Series Two Universal Pictures 4 Top Gear - The Perfect Road Trip BBC Worldwide The Big Bang Theory - 5 Warner Complete Season 6 5 Mrs Brown's Boys - Series Two Universal Pictures Homeland - The Complete 6 Sherlock - Complete Series 2 BBC Worldwide 6 20th Century Fox Second Season Mrs Brown's Boys - Christmas 7 Universal Pictures Game Of Thrones - Crackers 7 Warner Complete First Season Game Of Thrones - 8 Warner Breaking Bad - Complete Complete First Season 8 Sony Pictures Seasons 1-3 Breaking Bad - Complete 9 Sony Pictures The Big Bang Theory - Seasons 1-3 9 Warner Seasons 1-5 An Idiot Abroad - The 10 BBC Worldwide Friends - The Complete Series Complete Series 10 Warner 1-10 Breaking Bad - The Complete 11 Sony Pictures Mrs Brown's Boys - Christmas 1st Season 11 Universal Pictures Crackers Homeland - The Complete 12 20th Century Fox An Idiot Abroad - The Second Season 12 BBC Worldwide Complete Series Breaking Bad - The Complete 13 Sony Pictures 5th Season 13 Downton Abbey - Series Four Universal Pictures Breaking Bad - The Complete 14 Mrs Brown's Boys - Series One Universal Pictures 14 Sony Pictures 5th Season 15 The Moaning Of Life BBC Worldwide The Sopranos - The Complete 15 Warner Breaking Bad - The Complete Series 1-6 16 Sony Pictures The Walking Dead - Complete Entertainment 4th Season 16 17 Breaking Bad - The Final Season Sony Pictures 3rd Season One Breaking Bad - The Complete 17 Sony Pictures 18 Downton Abbey - Series Four Universal Pictures 4th Season Homeland - Homeland - 19 20th Century Fox 18 20th Century Fox The Complete First Season The Complete First Season Downton Abbey - A Journey 19 Sherlock - Complete Series 2 BBC Worldwide 20 Universal Pictures To The Highlands 20 Family Guy - Season 12 20th Century Fox

Includes box-sets. Source: Official Charts Company/BVA

• Top 10 by value sold in excess of £2.6 million second best-seller in 2013 and Mrs Brown’s Boys – Series Three was third. Mrs Brown’s Boys – Series • Top 20 sold over 114k each Two was fourth thanks to sales of its associated Game of Thrones is an American fantasy drama box-set and has now accumulated sales of over television series created for HBO in America and 1.1 million since release in October 2012. distributed on video in the UK by Warner. The All of the Top 20 sold in excess of 114,000 copies Complete Second Season was the best-selling and 56 titles sold more than 50,000 copies. physical video in the TV genre in 2013, achieving 338,000 sales and a further 185,000 from the By value Game of Thrones: The Complete Second associated box-set. One fifth of the combined Season generated £15.6 million including box-set sales were on Blu-ray Disc. In contrast, the best- sales and Warner’s The Big Bang Theory – selling TV title of 2012, Brendan O’Carroll’s Complete Season 6 came second with £5.2 comedy sitcom Mrs Brown’s Boys – Series One, million including box-sets, closely followed by Mrs distributed by Universal, had sold over 900,000 Brown’s Boys – Series Three with £5.1 million. copies in that year. All of the Top Ten by value sold in excess of £2.6 BBC’s Top Gear – The Perfect Road Trip was million and all the Top 20 sold over £2 million.

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TV – Physical formats RETAIL

Company shares – TV 2013 Value Volume

Warner 20.3% BBC Worldwide 26.6%

BBC Worldwide 19.7% Warner 15.1%

Universal Pictures 12.4% Universal Pictures 14.8%

20th Century Fox 10.1% 20th Century Fox 8.6%

Sony Pictures 7.3% Sony Pictures 6.2%

Paramount 4.9% Paramount 3.7%

FremantleMedia 3.4% Channel 4 DVD 3.5%

Walt Disney 2.9% FremantleMedia 3.3%

Channel 4 DVD 2.9% ITV Studios 3.0%

Anchor Bay 2.7% RLJ Entertainment 2.5%

Source: Official Charts Company/BVA

• Warner claims top position by value for BBC Worldwide remains the best-selling company first time of TV product by volume for a ninth consecutive year, claiming 26.6%, down from 27.7% in 2012. • Top 20 all sell in excess of £2m It claimed four of the best-selling titles in the top Thanks to the continued success of the series 20, its most popular being Top Gear – The Perfect Game of Thrones and The Big Bang Theory, Road Trip, whilst in 2012 it claimed six spots. Warner, with 20.3% share, took first place by Warner retook second place by volume from value from BBC Worldwide, the first time the Universal, having lost it in 2011. This year public broadcaster has been knocked off the top Universal claimed six spots in the Top 20, four of since value charts were introduced in 2010. The which were from the Mrs Brown’s Boys series and last time Warner was in a leading position in TV two from the ITV show Downton Abbey, was in the 2002 volume chart with 24% share, distributed by Universal. Sony also took four of thanks to the success of Friends, which continues the Top 20, each being from the Breaking Bad to sell with The Complete Series 1 – 10, released series. in 2004, making the 2013 value Top 10 due to its premium sales price of £50.

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RETAIL Catch-Up TV

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0% 2012 2013

Unknown Games Consoles Internet TV/Connected Devices Computers TV Platform Operators Tablets Mobiles

Source: BBCi Stats/MediaTel Connected Consumer

MediaTel’s Connected Consumer service provides a TV, while 3 minutes 30 seconds is via another data and analysis on TV in the UK. Their insight screen, such as a computer, tablet or mobile. In shows that despite the growth in on-demand and total, Thinkbox states that TV-VoD accounts for Catch-up TV, live/linear broadcast TV remains 2.5% of total TV viewing. king in the home, with people still watching just Further evidence of this continued growth in TV under four hours per day, 98.5% of which is via viewing can be seen with BBC’s iPlayer. In a TV set (source: BARB). February 2014 (the latest data available before Of all the television watched on a TV set in 2013, going to print) BBC iPlayer had 234 million 88.7% of it was viewed live compared to 89.9% requests for TV programmes alone, up from 50 in 2012, so no shifts in consumer behaviour as million five years ago with tablets taking 27% of yet, but this market is evolving. all requests, while computers fell to 30%. Catch-up and VoD is most definitely a growing Meanwhile, PVRs are still extremely popular and market. The IPA1’s TouchPoints5 states that 67% ownership is now at around 60% of all TV of the UK has ever watched on-demand content households according to BARB, especially the HD on either a TV or via the internet, whilst Thinkbox boxes, with BSkyB reporting 47% of its 10.5 say that an average viewer of broadcaster-VoD is million subscribers having a Sky+ HD box and watching an estimated six and a half minutes a Virgin reporting 52% of their 3.8 million cabled day. Of this, 3 minutes 12 seconds is watched on homes having a TiVo PVR.

1. Institute of Practitioners in Advertising

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RETAIL Special interest (live comedy) – physical formats

2013 video top 10 - live comedy Volume Value

Pos Title Company Pos Title Company Micky Flanagan - Back In The Micky Flanagan - Back In The 1 Channel 4 DVD 1 Channel 4 DVD Game - Live Game - Live Mrs Brown's Boys - Mrs Brown Mrs Brown's Boys - Mrs Brown 2 Universal Pictures 2 Universal Pictures Rides Again Rides Again Mrs Brown's Live Tour - Good Mrs Brown's Live Tour - Good 3 Universal Pictures 3 Universal Pictures Mourning Mourning 4 Miranda Hart's Maracattack BBC Worldwide 4 Miranda Hart's Maracattack BBC Worldwide Jimmy Carr - Laughing And 5 Michael McIntyre - Showtime Universal Pictures 5 Channel 4 DVD 6 Bill Bailey - Qualmpeddler Universal Pictures Joking Jimmy Carr - Laughing And 6 Bill Bailey - Qualmpeddler Universal Pictures 7 Channel 4 DVD Eddie Izzard - Force Majeure Joking 7 Universal Pictures Eddie Izzard - Force Majeure Live 8 Universal Pictures Live 8 Michael McIntyre - Showtime Universal Pictures Mrs Brown's Boys - Good 9 Peter Kay - Live & Back On Nights Universal Pictures 9 Universal Pictures Mourning / Rides Again Live - Sean Lock - Purple Van Man - 10 BBC Worldwide 10 Universal Pictures Rollercoaster Tour 2012 Live 2013 Company shares – live comedy 2013 Value Volume

Universal Pictures 55.5% Universal Pictures 55.3%

Channel 4 DVD 28.2% Channel 4 DVD 26.0%

BBC Worldwide 11.3% BBC Worldwide 12.1%

Anchor Bay 0.9% Anchor Bay 1.8%

Phil McIntyre 0.7% Phil McIntyre 0.7%

Mawson & Wareham 0.6% Comedy Central 0.6%

Comedy Central 0.6% Pias Comedy 0.5%

Pias Comedy 0.5% Spirit Entertainment 0.4%

Spirit Entertainment 0.2% Mawson & Wareham 0.4%

Kaleidoscope 0.1% Birlinn 0.3% Source: Official Charts Company/BVA

• Live comedy accounts for 93% of Special Micky Flanagan: Back In The Game Tour Live from Interest Channel 4 DVD was the best-selling comedy title in 2013, with sales of over 410,000, valued at • 60% of sales in December £4.9m. The cockney comedian performed live to • Universal continues to dominate sub-genre over half a million people through 2013, including a seven night run at The O2; both his video The Special Interest genre has two main releases made the Top 20. components - Live Comedy and a general ‘Other’ category which includes content not classified Mrs Brown’s Boys took second and third places in elsewhere. the comedy chart, with Mrs Brown Rides Again and Good Mourning (2012’s number one) selling Live Comedy dominates the genre, accounting 359,000 and 187,000 units respectively. The for 93% of the 2.77 million units sold in 2013, an latter title has cumulative sales of 773,000 since increase from 87% on 2012, and perhaps now release at the end of 2012. makes the case to be a genre in its own right, rather than a sub-genre. Its sales pattern is by Whilst 2.6 million units of comedy releases were far the most seasonal of all genres, with the sold across 295 titles in 2013, less than 1.5% of month of December accounting for 60% of sales them (39,000) were sold on Blu-ray Disc. in 2013 as companies release titles to capitalise Universal continues to dominate the genre but on the key Christmas gifting market. Some 13% with a reduced market share, down from 62% in are sold in the traditional January sales period. 2012 to 55% of value. 56 BVA YB 14 Inner AW 27/05/2014 16:41 Page 57

Special interest (other)– physical formats RETAIL

2013 video top 10 - other Volume Value Pos Title Company Pos Title Company 1 The Penguin King Kaleidoscope 1 The Penguin King Kaleidoscope 2 Midnight Tango Kaleidoscope 2 The Secret Brightspark 3 The Secret Brightspark 3 Ocean Wonderland 3D Universal Pictures 4 Ocean Wonderland 3D Universal Pictures 4 Shakespeare - Twelfth Night Opus Arte 5 Diversity - Digitized - Live Tour 2012 BBC Worldwide 5 Scene It - Harry Potter - DVD Game Paramount 6 Planet Dinosaur 3D BBC Worldwide 6 Midnight Tango Kaleidoscope 7 Safari Kaleidoscope 7 Diversity - Digitized - Live Tour 2012 BBC Worldwide The British Transport Films 8 Shakespeare - Twelfth Night Opus Arte 8 BFI DVD Driving Test Success - Theory Collection 9 Focus Video Edinburgh Military Tattoo Test 2013 9 Edinburgh Tattoo Twilight In Forks - The Saga 2013 10 Entertainment One Of The Real Town 10 Safari Kaleidoscope

Company shares – other 2013 Value Volume

Channel 4 DVD 17.5% Channel 4 DVD 12.5%

Kaleidoscope 6.6% Kaleidoscope 7.6%

BFI DVD 5.8% BFI DVD 4.5%

Universal Pictures 4.2% BBC Worldwide 4.4%

FremantleMedia 3.7% Universal Pictures 4.0%

Go Entertain 3.4% Delta 3.7%

Simply Media 3.2% FremantleMedia 3.7%

BBC Worldwide 3.1% Go Entertain 3.4%

Delta 3.0% Simply Media 3.3%

Cherry Red 2.3% Elevation Sales 2.5% Source: Official Charts Company/BVA

• Only one title sold more than 10,000 Second in the chart was Midnight Tango, Vincent Simone and Flavia Cacace - Tango World Titles not classified elsewhere are grouped in a Champions and stars of '' category known as ‘Other’, which forms part of - performing their stage show live. the Special Interest genre. This segment of the market has been shrinking in recent years; having Third place in the chart went to The Secret, once commanded half the volumes in the genre original title "Si J'étais Toi", released in 2007, a this proportion has dropped to just 7%, down film starring David Duchovny. from 13% in 2012, such is the dominance of Live Ocean Wonderland 3D, the Special Interest best- Comedy. seller in 2012, took fourth place in the 2013 chart. The best-selling title in 2013 was The Penguin The Top 10 titles had combined sales of less than King, narrated by Sir David Attenborough, about 55,000 copies between them. a King Penguin who returns to his birthplace in the sub-Antarctic. It was the only title to reach double figures with sales of 13,400.

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RETAIL All time top 20 – physical formats

All-time top 20 – total video Volume

Position Title Company 1 The Lord Of The Rings: The Fellowship Of The Ring EIV 2 Harry Potter And The Philosopher's Stone Warner 3 Toy Story Walt Disney 4 The Lord Of The Rings: The Two Towers EIV 5 Harry Potter and The Chamber Of Secrets Warner 6 Titanic 20th Century Fox 7 The Lion King Walt Disney 8 Shrek Paramount 9 The Lord Of The Rings: The Return Of The King EIV 10 Pirates Of The Caribbean - The Curse Of the Black Pearl Walt Disney 11 Harry Potter And The Prisoner Of Azkaban Warner 12 Mamma Mia! - The Movie Universal Pictures 13 Harry Potter & The Goblet Of Fire Warner 14 Gladiator Universal Pictures 15 Star Wars IV - A New Hope 20th Century Fox 16 Harry Potter And The Order Of The Phoenix Warner 17 Grease Paramount 18 The Shawshank Redemption ITV Studios 19 Dirty Dancing Elevation Sales/Lionsgate 20 Snow White And The Seven Dwarfs Walt Disney

Note: Company names refer to current chart distributor of each title. Volume sales since February 1994, when the video charts began. Includes box-sets. Source: Official Charts Company/BVA

The Lord Of The Rings: The Fellowship Of The Shawshank Redemption and Snow White And The Ring remains the most popular video in physical Seven Dwarfs, an incredible testament to the form, a position it has held for the tenth success of those titles since their release. consecutive year, having sold 8.66 million copies All the titles in the Top 20 sold in excess of 5.2 since its release in August 2002. One third of all million copies since February 1994 and 587 titles copies were sold as part of The Lord Of The Rings have sold more than 1 million. Trilogy box-set, which continues to sell, with consumers buying 243,000 copies in 2013, no The most successful Blu-ray Disc is Avatar, the doubt due to the association with the video only title to have sold more than 1 million copies release of The Hobbit during the year. in the HD format. The Top 20 all sold in excess of 550,000 units and 163 have sold more than Harry Potter And The Philosopher’s Stone passed 100,000. Warner dominates the format with the 8 million barrier during 2013 to reach 8.04 thirteen of the Top 20 titles and eight of the Top million sales. It has been in no less than six box- 10. sets, being the first book and film in the series. In third place is Toy Story with 7.96 million, having Toy Story retains its position as the best-selling been in four box-sets. title in the Children’s genre at over 7.5 million, benefiting from having appeared in five box-sets, Franchises and titles with sequels which then ahead of The Lion King, whilst High School result in further copies being sold within box-sets Musical retains its position at the top of the All tend to dominate the All Time Chart. Only three Time TV chart with 2.5 million, just ahead of titles in the Top 20 did not benefit from box-set Little Britain – Series One. sales, being Mamma Mia! The Movie, The

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RETAIL All time charts – physical formats

Film Position Title Company 1 The Lord Of The Rings: The Fellowship Of The Ring EIV 2 Harry Potter And The Philosopher's Stone Warner 3 The Lord Of The Rings: The Two Towers EIV 4 Harry Potter And The Chamber Of Secrets Warner 5 Titanic 20th Century Fox 6 The Lord Of The Rings: The Return Of The King EIV 7 Pirates Of The Caribbean: The Curse Of The Black Pearl Walt Disney 8 Harry Potter And The Prisoner Of Azkaban Warner 9 Mamma Mia! - The Movie Universal Pictures 10 Harry Potter And The Goblet of Fire Warner TV Position Title Company 1 High School Musical Walt Disney 2 Little Britain - The Complete 1st Series BBC Worldwide 3 Band Of Brothers Warner 4 Friends - Series 1 Warner 5 Mrs Brown's Boys - Series 1 Universal Pictures 6 The Office - The Complete 1st Series BBC Worldwide 7 The Inbetweeners - Series 1 Channel 4 DVD 8 Pride And Prejudice BBC Worldwide 9 High School Musical 2 Walt Disney 10 Friends - Series 2 Warner Children's Position Title Company 1 Toy Story Walt Disney 2 The Lion King Walt Disney 3 Shrek Paramount 4 Ice Age 20th Century Fox 5 Snow White And The Seven Dwarfs Walt Disney 6 Shrek 2 Paramount 7 Toy Story 2 Walt Disney 8 Finding Nemo Walt Disney 9 Monsters Inc Walt Disney 10 Aladdin Walt Disney Music Position Title Company 1 Riverdance BBC Worldwide 2 Lord Of The Dance Universal Pictures 3 Dream Cast - Les Misérables In Concert BBC Worldwide 4 Cats Universal Pictures 5 Spice Girls - Official Video Volume 1 Universal Music 6 Michael Jackson - This Is It Universal Pictures 7 Joseph & The Amazing Technicolor Dreamcoat Universal Pictures 8 Les Misérables In Concert - 25th Anniversary Universal Pictures 9 Take That - The Circus - Live Universal Music 10 Robson & Jerome - So Far So Good Sony Music

Source: Official Charts Company/BVA Note: Company names refer to current chart distributor of each title. Includes box-sets. Volume sales since February 1994. 60 BVA YB 14 Inner AW 27/05/2014 16:42 Page 61

All time charts – physical formats RETAIL

Special interest Position Title Company 1 Peter Kay - Live At The Bolton Albert Halls Universal Pictures 2 Michael McIntyre - Hello Wembley Universal Pictures 3 Lee Evans - Big - Live At The O2 Universal Pictures 4 Peter Kay - Live At The Top Of The Tower Universal Pictures 5 Peter Kay - Live - The Tour That Didn't Tour - Tour Universal Pictures 6 Billy Connolly - Live At The Apollo 1994 Universal Pictures 7 Deal Or No Deal - DVD Game Channel 4 DVD 8 Lee Evans - Roadrunner - Live At The O2 Universal Pictures 9 Lee Evans - XL Tour 2005 - Live Universal Pictures 10 Michael McIntyre - Live & Laughing Universal Pictures Sport Position Title Company 1 London 2012 Olympic Games BBC Worldwide 2 The Ashes 2005 - The Greatest Series Simply Media 3 Rugby World Cup 2003 - Official Review Lace DVD 4 Manchester United - The Treble Go Entertain 5 Torvill & Dean - Face The Music Tour Universal Pictures 6 Jeremy Clarkson - Unleashed On Cars BBC Worldwide 7 Murray's Magic Moments Universal Pictures 8 England Rugby - Sweet Chariot Universal Pictures 9 Very Best Of Torvill And Dean BBC Worldwide 10 Liverpool FC - The Road To Istanbul ITV Studios Fitness Position Title Company 1 Jillian Michaels - 30 Day Shred Elevation Sales 2 Geri - Yoga BBC Worldwide 3 Mr Motivator - BLT Workout Universal Pictures 4 10 Minute Solution - Blast Off Belly Fat Anchor Bay 5 Barbara Currie - Power Of Yoga BBC Worldwide 6 Charlie Brooks - Before & After Workout Universal Pictures 7 Pump It Up - The Ultimate Dance Workout Ministry Of Sound 8 Davina McCall - The Power Of 3 BBC Worldwide 9 Davina - My Three 30 Minute Workouts BBC Worldwide 10 Beverley Callard - Real Results BBC Worldwide Blu-ray Disc Position Title Company 1 Avatar 20th Century Fox 2 The Dark Knight Warner 3 Skyfall 20th Century Fox 4 The Dark Knight Rises Warner 5 Harry Potter And The Half Blood Prince Warner 6 Harry Potter And The Deathly Hallows - 2 Warner 7 The Hobbit - An Unexpected Journey Warner 8 Inception Warner 9 Harry Potter And The Order Of The Phoenix Warner 10 Harry Potter And The Philosopher's Stone Warner

Source: Official Charts Company/BVA Note: Company names refer to current chart distributor of each title. Includes box-sets. Volume sales since February 1994. 61 BVA YB 14 Inner AW 27/05/2014 16:42 Page 62

RETAIL Consumer behaviour – all formats

Importance of buyers in the DVD market – 2013

Light (buying 1 - 4 units/year) Medium (buying 5 - 11 units/year) Heavy (buying 12+ units/year)

% of Buyers 59.2% 25.5% 15.3%

% Volume 18.3% 26.8% 55.1%

% Spend 21.4% 28.4% 50.1%

Importance of buyers in the Blu-ray Disc market – 2013 Light (buying 1 - 4 units/year) Medium (buying 5 - 11 units/year) Heavy (buying 12+ units/year)

% of Buyers 64.2% 20.6% 15.2%

% Volume 24.9% 22.6% 52.5%

% Spend 27.2% 23.9% 49.0%

Importance of buyers in the digital retail market – 2013 Light (buying 1 - 2 units/year) Medium (buying 3 - 6 units/year) Heavy (buying 7+ units/year)

% of Buyers 71.3% 19.2% 9.5%

% Volume 21.4% 17.3% 61.2%

% Spend 23.5% 17.1% 59.5%

Source: Kantar Worldpanel

• 15% of disc buyers account for 50% of Similarly, 15% of ‘heavy’ Blu-ray Disc buyers spend accounted for 49% of spend, this also being down from the top 20% accounting for 65% of • Less than 10% of digital buyers account for spend in 2012. Digging deeper, in 2013 26% of 61% sales volume Blu-ray Disc buyers bought seven or more discs • More than half of DVDs are bought on a year but accounted for 63% of spend. impulse The majority of DVD buyers, 59%, bought fewer The Pareto principle roughly applies to this than four discs in 2013 accounting for 21% of market, with some 15% of DVD buyers being spend. This ‘light’ segment is growing in size, classed as ‘heavy’ consumers, purchasing more having accounted for 45% of buyers in 2012, as than 12 discs per person in 2013 and accounting consumers are purchasing fewer DVDs. for exactly half of all spend. This is down from Meanwhile, the majority of Blu-ray Disc buyers, 23% of buyers being ‘heavy’ in 2012, which itself 64%, bought four or fewer in 2013, this up from was a peak having grown from 21% in 2011 and 50% in 2012. 19% in 2010.

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Consumer behaviour – all formats RETAIL

Reasons for purchasing – 2013 % of population % market volume % market value

32.0% 39.7% 36.4% Family Family Family 5.4% 42.5% 40.9% Use Use Use 1.1% 31.4% 35.4%

24.4% 27.0% 32.2% Gift 3.3% Gift 18.4% Gift 21.0% 0.0% 0.0% 0.0%

22.8% 33.4% 31.5% Personal Personal Personal 4.3% 39.1% Use Use Use 38.0% 1.8% 68.6% 64.6%

DVD Blu-ray Disc Digital retail

Impulse v planned purchasing 2013 % of population % market volume % market value

31.5% 47.0% Impulse Impulse 58.9% Impulse 5.3% 48.2% 39.2%

30.7% 41.1% 53.0% Planned Planned Planned 6.5% 51.8% 60.8%

DVD Blu-ray Disc

Source: Kantar Worldpanel

Just 9.5% of digital retail customers accounted Over half of all DVD purchases were bought on for 61% of downloads-to-own (or EST) whilst the impulse in 2013, reflecting the importance of majority, 71%, downloaded only one or two titles retail stores and their ranges to the category. during 2013. Blu-ray Disc is still a more planned purchase, as is buying online where e-commerce stores are a DVDs and Blu-ray Discs are generally bought for ‘go to’ place to shop as opposed to browsing, family or personal use in contrast to digital which is still the domain of specialist video stores. downloads, which more than two thirds are bought purely for personal use and are generally watched on smaller devices.

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RETAIL Consumer behaviour – all formats

Consumer profile of video buyers and cinema goers 2013 Age Under 20 20-24 25-34 35-44 45-54 55-64 65-79 DVD 8.8% 9.6% 18.2% 19.4% 21.4% 13.9% 8.8% Blu-ray Disc 3.5% 8.5% 25.9% 28.3% 17.2% 11.9% 4.8% Digital retail 9.5% 6.7% 43.2% 21.4% 9.6% 8% 1.7% VoD 8.8% 5.3% 20.0% 30.8% 24.2% 8.4% 2.5% Cinema 13.0% 12.5% 24.6% 19.2 14.8% 8.9% 7.0%

Class AB C1 C2 DE DVD 15.4% 35.7% 23.6% 24.1% Blu-ray Disc 20.8% 38.8% 20.2% 19.8% Digital retail 41.0% 28.9% 12.4% 17.2% VoD 28.5% 34.0% 18.9% 17.3% Cinema 24.0% 38.8% 20.7% 15.1%

Gender Female Male DVD 44.1% 55.9% Blu-ray Disc 24.9% 75.1% Digital retail 23.5% 76.5% VoD 35.8% 64.2% Cinema 41.4% 58.6%

Figures based on volumes. Source: Kantar Worldpanel

• Young, AB males buy digital Video is still male dominated, in every genre. Whilst men account for 56% of DVDs bought, • C1 group buys Blu-ray Disc they purchased 75% of Blu-ray Disc and 76% of • DVDs over-index with older shoppers digital downloads. They also account for more cinema visits, at 59%. 25-34 year-olds are a key age group as the market changes, representing 43% of all digital In terms of social class, ABC1s bought 70% of downloads and 26% of Blu-ray Disc volumes sold, digital downloads, 60% of Blu-ray Discs and 51% with their interest in film apparent from the fact of DVDs whilst accounting for 63% of cinema that they also account for 25% of cinema visits. visits over the course of 2013. Whilst the AB Digital download-to-own (or EST) is also of groups are more important to digital, it is the C1 interest to 35-44 year-olds, generating for a group that is more important to physical further 21% of sales. purchase of discs, especially Blu-ray Disc. Interestingly, those without children buy more Blu-ray Disc buyers have a slightly older profile, video overall and in all genres outside Children’s, with 25-44 year-olds accounting for 54% of accounting for 62% of downloads, 69% of DVDs purchases of the HD format, whilst DVD has an and 73% of Blu-ray Disc volumes. older customer profile still, with 35-44 year-olds buying 41% of discs.

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Consumer behaviour – physical formats RETAIL

Consumer profile by genre – volume 2013

Age Under 20 20-24 25-34 35-44 45-54 55-64 65-79

Film 8.8% 9.7% 18.7% 20.3% 20.6% 13.9% 8.0%

TV 6.6% 10.9% 18.6% 18.6% 23.6% 13.6% 8.1%

Children's 5.6% 4.6% 27.7% 27.7% 13.9% 10.1% 10.4%

Other 7.7% 6.4% 16.5% 18.3% 24.2% 14.4% 12.5%

Class AB C1 C2 DE

Film 16.4% 36.0% 23.7% 23.9%

TV 15.0% 39.6% 21.5% 23.6%

Children's 15.4% 31.6% 25.8% 27.2%

Other 16.9% 36.0% 24.2% 23.0%

Gender Children in household Female Male No Children Children

Film 42.5% 57.5% Film 68.4% 31.6%

TV 37.4% 62.6% TV 79.4% 20.6%

Children's 49.1% 50.9% Children's 42.6% 57.4%

Other 42.8% 57.2% Other 77% 23%

Life-stage Children (Under 18) Students Families Younger Singles (<45) Older Singles (45+) Younger Couples (<45) Older Couples (45+)

Film 4.6% 11.4% 26.0% 13.7% 10.3% 10.3% 33.0%

TV 3.5% 10.4% 16.6% 18.5% 14.7% 11.6% 24.6%

Children's 3.2% 6.3% 53.3% 8.0% 5.7% 4.0% 19.6%

Other 5.0% 7.4% 19.2% 12.3% 11.4% 11.7% 33.1%

Source: Kantar Worldpanel Figures based on volume of purchases.

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RETAIL Consumer behaviour – all formats

Proportion of GB population active Frequency of purchase (annual average) in each market

Total video 45.1% Total video 4.3 retail disc 48.2% retail disc 4.6

Blu-ray 9.2% Blu-ray 2.3 Disc 8.4% Disc 2.3

Download- 2.4% Download- 2.5 to-own 1.7% to-own 3.1

36.4% 9.6 Cinema Cinema 35.0% 10.0

Total Retail 46.0% Total Retail 4.4 (disc and (disc and download) 48.8% download) 4.6

Number of purchases/cinema visits (annual average) Average spend

Total video 6.6 Total video £51.74 retail disc 7.1 retail disc £54.92

Blu-ray 3.4 Blu-ray £38.93 Disc 3.3 Disc £39.21

Download- 4.1 Download- £30.82 to-own 4.8 to-own £30.22

10.0 £68.82 Cinema Cinema 10.6 £70.40

Total Retail 6.7 Total Retail £52.37 (disc and (disc and download) 7.1 download) £55.49

2013 2012

Source: Kantar Worldpanel Figures may have been revised since 2013 Yearbook.

• More people buy videos than go to the sales and is mainly due to reduced availability cinema or subscribe to Sky resulting from the closure of specialist high street shops and in part the shift towards digital Almost half (46%) of the GB population (that viewing. According to Kantar Worldpanel there excludes Northern Ireland for which data is not was a 45% increase in the number of people in available) bought some form of video to own in Great Britain, 2.4% of the population, who 2013, either on disc or as a digital download, bought and downloaded a digital video to own. equivalent to some 22.6 million people. This is significantly more than the number of people Owning a digital copy is increasingly attractive to who visit the cinema (17.7m), listen to BBC Radio many consumers due to its immediacy and the 2 (15.5m), subscribe to Sky TV (10.5m), or transferability of content. It can be held in the participate in the UK’s most popular sport, cloud and downloaded or streamed onto a fishing (6.1m), reflecting the broad appeal of favourite device, such as a light and portable video ownership, although it is less than the tablet, for immediate viewing anywhere. As a number of people who voted in the 2010 General result a larger library can be kept without taking Election (29.5m). up any space either on the DVD shelf or on the computer hard drive. The most popular format remains DVD, with 43.5% of the GB population buying at least one Overall disc buyers spent on average £51.74 in the year, although this was down from 47% in across the year and those that downloaded to 2012. This drop ultimately drove the fall in DVD own spent £30.82.

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Here’s to another AMAZING year for Sony Pictures Home Entertainment! BVA YB 14 Inner AW 27/05/2014 16:42 Page 68

DIGITAL The digital video market

Digital video revenue by business model

Total Digital (buy and rent) Share of Digital revenue

57% 2006 5% 95% 49% 42% 2007 9% 89% 3% 24% 23% 20% 18% 610.1 2008 11% 78% 11% 2009 15% 67% 18% 430.9 2010 16% 54% 30% 275.2 233.5 2011 20% 51% 29% 153.0 189.5 85.2 102.4 2012 37% 40% 23% 2013 46% 33% 21% 2006 2007 2008 2009 2010 2011 2012 2013 sVoD tVoD EST

growth rate year on year £ million

Source: IHS

• EST market value up 27% year on year combination. This was up from 285 in 2012, 142 in 2011 and 77 in 2010. • Apple’s iTunes continues to dominate market The UV “movies in the cloud” digital locker system was introduced in the UK in late 2011. The • 400+ titles released on disc with digital or first UV title was Warner’s Final Destination 5, UV copy released on Boxing Day 2011, which included a UV IHS, the global information company, estimates copy on DVD, Blu-ray Disc and Blu-ray 3D that the digital retail segment of the market, formats. UK consumers have access to UV copies often referred to as Electronic Sell-Through (EST) of films via a number of web-based partners such or Download-to-Own (DTO), generated £126 as Warner-owned Flixster, Sony Pictures Store million in 2013, up 27% compared to 2012. and Kaleidescape (sic). In 2013 233 titles included Unusually for a growing portion of the market, a UV copy and by the end of the year over 1.1 the level of growth shown in 2013 exceeded that million UV locker accounts had been opened in of the previous year by just three percentage the UK, a significant volume when one considers points. the service has yet to be officially launched. A number of major UK retailers have expressed Through 2013 the digital retail environment saw support for the UV service and it is anticipated the launch of a number of additional services and that at least two retailers will launch UV services industry initiatives promoting the concept of during 2014. digital content ownership. Many film distributors have supported the “early digital access Apple’s iTunes Store (iTS) continued to dominate initiative”, providing the opportunity for the digital retail market in the UK during 2013. consumers to download-to-own two weeks prior Fashionable Apple devices, ease of access and to the release of a title in physical format. Whilst the service’s familiarity to iPod, iPhone and iPad popular with consumers it hasn’t dampened the users offer consumers easy access to digital demand for DVD and Blu-ray Disc, particularly as video and thus has continued to drive download physical discs increasingly come with a digital sales. As a result, Apple accounts for an copy. estimated 85% of the open-internet segment of the digital retail market, according to IHS. The According to OCC, in 2013 there were 447 titles remainder of this market segment is almost released on physical disc that included a free wholly accounted for by ’s Xbox Video, digital copy to redeem through iTunes, Google Sony Entertainment Network (SEN) and Google Play or UltraViolet (UV) or in some instances a Play. 68 BVA YB 14 Inner AW 27/05/2014 16:42 Page 69

Share of Digital revenue BVA YB 14 Inner AW 27/05/2014 16:42 Page 70 PhysicalPhysical and digital video entertainment - at home and on the move

“Building a Video entertainment to buy collection of discs is important to me.”

“I buy DVDs as gifts for family and Local independents friends.”

Video entertainment to rent “We like to rent a movie Local Public independents Library and watch it as a family.”

“When I'm out shopping, I often pick up a video on impulse to watch later.”

British Video Association © May 2014. Please visit the Content Map to access these services www.thecontentmap.com/film-tv/ 70 BVA YB 14 Inner AW 27/05/2014 16:42 Page 71 PhysicalPhysical and digital video entertainmentDigital - at home and on the move

“I download Video entertainment to buy movies and TV shows and watch when I'm on the move.”

Video entertainment to rent

“Through our smart TV we access digital services offering thousands of movies and TV series.”

Free to view services

“I stream videos to watch instantly.”

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DIGITAL Digital retail

Digital retail market shares - 2013 Value % Volume %

iTunes 78.8% iTunes 73.0%

Blinkbox 8.4% Blinkbox 12.1%

Google Play 4.8% Google Play 6.6% Store Store

Xbox Live 2.6% Xbox Live 2.8% Marketplace Marketplace

Sainsbury's 1.8% Sainsbury's 1.4%

Total Sony 0.9% Total Sony 0.9%

Other 2.7% Other 3.2%

Source: Kantar Worldpanel

In 2012 Kantar Worldpanel conducted research Consumers who access video content digitally on behalf of the BVA identified that 30% of the through EST or VoD services are likely to spend GB population claimed they would purchase their money on other forms of video some form of digital content in 2013. At the end entertainment too. Whilst the number of people of 2013, Kantar Worldpanel data showed that the solely engaging with retail disc has declined from number of people in Great Britain who paid for 39.6% in 2011 to 36.7% in 2013, the number of some form of digital content was somewhat lower people choosing to buy discs and also pay for at 14.5%, an increase of 40% nonetheless, but digital services has more than doubled, from 1.3% not as much as predicted. Whilst 12% had two years ago to 3.4% in 2013. expressed an interest in downloading to own Kantar Worldpanel has identified six different (DTO) in actual fact only 2.4% did so. Meanwhile types of consumer: Hard-core Disc Buyers; Digital 13% wanted to try internet-based Video-on- Disciples; Digital Dabblers; Disc Gifters; Disc Demand (iVoD) but just 4.4% did so and 12% said Dealers; and The Masses. In volume terms, Hard- they would try subscription VoD (sVoD) and core Disc and Digital Disciples are the two largest eventually 6.7% did so. In all approximately 7.1 segments, with the latter – although small in million people got involved in buying or renting number and despite being so heavily focused on video content digitally, paying on average for 9.5 digital, primarily through sVoD – visiting the items per person across the year, up 30% on cinema at least once a month and three quarters 2012, excluding sVoD services. of them still buying physical discs.

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Digital rental DIGITAL

Digital rental market shares – 2013

Transactional VoD Value % Volume % Total Sky 55.8% Total Sky 47.6% Total Virgin 11.9% Total Virgin 14.4% BT TV 10.9% BT TV 9.9% Blinkbox 7.2% Blinkbox 10.9% iTunes 6.0% iTunes 7.0% Google Play Store 2.1% Google Play Store 2.4% Total Sony 1.7% Total Sony 2.3% Acetrax 1.0% Acetrax 1.3% Xbox Live Xbox Live Marketplace 0.6% Marketplace 0.8% Other 2.8% Other 3.4%

Source: Kantar Worldpanel

• UK consumers made 56 million digital Sky, Virgin Media and BT TV who, due to their rentals in 2013 combined longstanding presence in the digital rental sector, accounted for 77% of revenues and • Consumer spending increased 17% to £202 76% of transactions in 2013. IHS estimates that million there were 42 million TV-VoD transactions in • Digital rental accounted for 79% of total 2013 (excluding Pay-per-View sports, events and digital spend adult content), up 17% compared to 2012. Consumer spending through these services In the digital rental space 2013 was typified by increased 16% to £156 million in 2013. Sky consolidation and expansion of existing services. remains the largest player in this sector; the The only new entrant in 2013 was Wuaki.TV, which company’s on-demand services accounted for an offers digital rental options as well as digital retail estimated 50% of the UK TV-VoD market in 2013. through their internet-based service. UK The rest is accounted for by Virgin Media, who consumers made 56 million digital rental maintained a 39% share of the sector, and BT TV transactions in 2013, either through TV-based accounted for most of the remainder. Talk Talk, Video-on-Demand (TV-VoD) or internet-based following the re-launch of their broadband rental services (iVoD), an increase of 19% service, also saw growth, albeit from a very small compared to 2012, according to IHS. Consumer base. The service provider offers transactional spending through these services also increased, VoD services alongside traditional pay-TV. up 17% to £202 million. Open internet-based rental services, as with Transactional digital (t-VoD) rental accounted for digital retail, remain dominated by iTunes Store 33% of total digital consumer spending in 2013, as the main source of online video content. a stark contrast to the physical market where disc Microsoft’s Xbox Video and SEN (Sony rental accounts for just 12% of the combined Entertainment Network) are also active in the physical retail and rental spending. The ease of a sector, accounting for a similar share of the few clicks and a relatively low entry price makes market as in the digital retail sector. Google Play, tVoD a very accessible option for consumers and which launched digital rental services in 2012, as such it is an increasingly popular way to remains a small but growing player in this space. consume content. Consumers spent £46 million on video rental The TV-based rental market (including cable, through these services in 2013, making 13 million satellite and IPTV based VoD and nVoD services) transactions according to IHS. is dominated in the UK by the three key players: 73 BVA YB 14 Inner AW 27/05/2014 16:42 Page 74

DIGITAL Digital subscription

Subscription-VoD (sVoD) – 2013 Volume %

LOVEFiLM 48.5%

Netflix 45.1%

NowTV 6.2%

Other 0.2%

Source: Kantar Worldpanel

• sVoD increases 77% to £281m The NowTV service has greater access to more recent releases though its parent Sky’s content • Sector dominated by LOVEFiLM and Netflix deals and charges a higher monthly premium. • 3.3m subscribe to a video rental service However, the service’s subscription price was reduced during 2013 to £8.99 from £14.99, to Digital subscription has been a substantial area make it more comparable to those of the market of growth for the video industry in the UK leaders. through 2013. Digital subscription is defined as Video-on-Demand (VoD) content accessed either By the end of 2013 these three services boasted through online or pay-TV services on a pay- a combined subscriber base of just over 3.3 weekly or pay-monthly basis. Consumers in the million, generating £196 million in consumer UK spent £281 million accessing video through spending, an increase of 120% over 2012. these platforms in 2013, a 77% increase on the TV-based sVoD services provided by BT are £159 million reported for 2012. relatively well established in the UK and provide The open internet delivered sVoD services are BT’s content delivery platform. This type of sVoD dominated in the UK by Amazon’s Prime Instant service generated £85 million in consumer Video (formerly LOVEFiLM) and Netflix which spending in 2013, an increase of 22% compared both launched late in 2011. Sky’s NowTV, which to 2012. launched in July 2012, remains a smaller player.

74 BVA YB 14 Inner AW 27/05/2014 16:42 Page 75

The Return of Home Recording DIGITAL

Pay-TV PVR homes vs disc spend

10,000 2,500

9,000 t

8,000 2,000

7,000 ed entertainmen 6,000 1,500 bas

5,000

4,000 1,000 TV PVR enabled hom e TV PVR Pay 3,000 sumer spending on di sc 2,000 500 Con

1,000

0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Total STB pay TV PVR subscriptions (000) Total disc retail spending £m DVD retail £m

All figures are calendar year end and so may differ from individual operator's fiscal years. PVR refers to a Personal Video Recorder (also known commonly as a DVR or Digital Video Recorder). It is a type of set-top box that contains a hard disc onto which content can be recorded and stored. Figures do not include any PVRs sold at retail for use with free television content. Source: IHS

Whilst consumer spending on physical discs still consumers to access Catch-up TV for the first dominates home entertainment viewing, the time. decline in retail disc sales was driven less by Retailer closures and shelf space reductions are digital competition and more by the return of also a key factor in the decline in physical home recording. spending. Change to the UK’s retail landscape is The decline in disc sales is as much to do with irreversible. The closure of retailers that carried home recording as with digital services such as range depth has effectively caused step changes VoD and DTO (EST), in fact more so, according to in physical video sales and reduced consumer global information company IHS, as sales of DVD appreciation of discs both for personal began to decline in the UK two years before the consumption and as a gift. Many UK high-streets launch of web-based digital alternatives. now have no physical video retailers, reducing the casual availability of video to buy. The The introduction of DVD players in 1998 led to remaining retailers have retained a narrower the obsolescence and disappearance of VHS selection of product, one focused on new release players and with that the ability of the consumer and promotional titles and catalogue discs have to home record. As such, pre-recorded DVDs had become a destination purchase rather than a a free reign for several years and the market casual impulse purchase. grew significantly as consumers’ demand for content continued. The introduction of PVRs In 2006, the digital market was worth £85 (personal video recorders) such as Sky+ in 2002 million, with transactional-VoD accounting for and Virgin Media’s V+ in 2005 provided 95%. By 2010, the market was worth £233 consumers the ability to home record again and million, with tVoD taking 54% and DTO having as penetration increased, demand for DVDs grown to 30% share. In 2013 the market was began to fall. The introduction of Blu-ray, a worth an estimated £610 million, with tVoD significantly better quality pre-recorded video on taking 33%, DTO accounting for 21% and disc, did not fill the gap and also coincided with subscription-VoD having grown to 46%. the introduction of BBC’s iPlayer, so enabling 75 BVA YB 14 Inner AW 27/05/2014 16:42 Page 76

RENTAL Consumer market – all physical and digital formats

£681 Rental video consumer market £622

£551 £548 £542 £495 £531 £504 £476 £487 £461 £449 £418 £416 £407 £456 £420 £426 £382 £389 £371 £391 £350 £351 £395

£326 289 277 £339 £284 271 251 253 233 222 206 209 199 198 184 190 175 179 177 167 167 168 162 141 139 139 135 133 128 125 118

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total transactions (millions): VHS over-the-counter Disc over-the-counter Digital rental Disc online Total value (£millions) Source: IHS/Kantar Worldpanel/BVA/MRIB Note: Market figures vary from those previously reported due to methodology revisions by IHS. Value figures quoted include digital subscriptions. Volume figures exclude digital subscriptions as this data is not available. The video rental market performed strongly for viewing in the home. There are now in excess of the sixth year running, with 2013 proving 30 brands competing in the VoD segment and particularly successful. The total market value in this figure is growing, although it is anticipated 2012 has been revised since publication of the that at some point there will be a period of last Yearbook and is now estimated by IHS, the consolidation in this increasingly attractive global information service, to have been worth market. £590 million. The estimate for 2013 is £681 The VoD market is sub-segmented into million, a growth of 15%. This figure includes both transactional, that is pay-per-view, and the rental of DVDs and Blu-ray Discs in shops and subscription, that is for a monthly fee you may through the post, as well as ‘digital rental’, consume as much as you are able. The embracing all forms of Video-on-Demand (VoD). transactional VoD (tVoD) segment is valued by Whilst physical rental’s performance is in stark IHS in the region of £202 million and there are contrast to that of digital rental, consumers still two main ways to access, either via a pay-TV spent just under £200 million renting a disc in platform or the open internet. The pay-TV 2013, down from £260 million the year before. providers dominate, taking 79% of the entire Amazon-owned LOVEFiLM remained market tVoD market, with Sky holding 55% market share leader with 52% market share, up from 43%, for by value, according to Kantar Worldpanel, their online rental-by-post service, followed by followed by Virgin Media (12%) and BT TV (11%). Blockbuster with 27%, down from 37%. Public The internet providers are led by Blinkbox, from libraries were third with 12%. With the closure of Tesco, with 7% and iTunes with 6%, while Google Blockbuster in December 2013 the market is and Sony have around 2% each. forecast by IHS to decline 10% in 2014. The subscription-VoD (sVoD) segment is Independent research by the BVA reveals that the estimated to be worth £281 million by IHS and in distinction between ownership and rental has 2013 was dominated by Amazon’s LOVEFiLM been blurred by the rise of on-demand services. Instant (since renamed Prime Instant Video) with There is now a plethora of services available to 48% and Netflix with 45%, while Sky’s Now TV the consumer either over the internet or via the stood at around 6% share by value, according to TV, the latter being the device of choice for Kantar Worldpanel. 76 BVA YB 14 Inner AW 27/05/2014 16:42 Page 77

Consumer market – all physical and digital formats RENTAL

£358 Rental transactions split by format £331

£272 Over-the-counter £259 117 107 £219 disc rental £191 £176 £164 87 88 £155 £132 £107 69 £65 60 57 55 £44 £22 48 47 40 25

8

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

£152 £153 Online disc rental £143 £123 £108 50 £92 47 46 45 £67 £76 43 £46 36 £484 28 29 23

£332 2005 2006 2007 2008 2009 2010 2011 2012 2013

Digital rental £202 £195 £173 £155 £163 £136 55.6 £139 £100 46.9 £88 £85 £78 £75 £81 £87 £127 £125 £60 £119 39.7 £48 £91 34.9 35.6 £78 £75 £81 £87 £88 £81 32.7 £48 £60 26.9 24.4 24.8 23.0 21.8 23.1 23.2 19.6 15.8

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Volume (million) Digital rental excluding sVoD. Value (£ million) No volume figures for sVoD are available Digital rental including sVoD. Value (£ million)

Market share volume % value % Over-the- Online Over-the- Over-the- Online Over-the- counter Disc Disc Digital counter VHS counter Disc Disc Digital Digital counter VHS Rental Rental rental Rental Rental Rental rental subscription Rental 1999 8% 92% 1999 11% 89% 2000 4% 10% 87% 2000 4% 12% 84% 2001 12% 11% 77% 2001 12% 14% 74% 2002 29% 11% 60% 2002 30% 14% 57% 2003 48% 13% 39% 2003 49% 15% 36% 2004 66% 14% 20% 2004 65% 16% 19% 2005 66% 14% 15% 5% 2005 68% 9% 18% 4% 2006 63% 20% 17% 0.2% 2006 64% 16% 19% 1% 0.2% 2007 55% 23% 22% 2007 55% 19% 23% 2% 2008 47% 28% 26% 2008 46% 22% 28% 4% 2009 42% 32% 26% 2009 40% 25% 29% 6% 2010 38% 35% 28% 2010 35% 28% 28% 8% 2011 34% 37% 29% 2011 28% 30% 30% 12% 2012 30% 35% 35% 2012 18% 26% 29% 27% 2013 14% 39% 47% 2013 6% 22% 30% 41%

Figures vary from those previously reported due to IHS methodology revisions. Proportions rounded. Source: IHS/Kantar Worldpanel/BVA/MRIB 77 BVA YB 14 Inner AW 27/05/2014 16:42 Page 78

RENTAL Shipments – physical formats

Rental market shipments by format (millions)

£80.4 DVD £79.5 £66.1 £57.9 8.7 £44.9 £47.9 £37.9 8.4 £37.8 £33.3 £32.5 £27.1 6.9 £14.0 6.3 £16.7

4.4 4.5 3.8 3.6 3.4 3.5 2.9

1.5 1.6

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

Blu-ray Disc

£9.0 £8.6 £7.3 £5.8

£1.9 0.81 0.78 0.67 0.49

0.15

Volume (million) Value (million) 2009 2010 20112012 2013

Source: BVA

• Shipments for disc rental down 38% DVD accounted for 71% of rental shipments in 2013, down from 78% in 2012, with 1.6 million • Blu-ray Disc accounts for 30% discs shipped. These achieved average revenue The BVA estimates that there were a total of 2.3 of £10.11, up 9% on 2012, making the format million disc shipments to rental shops and online worth £16.6 million to video companies. services in 2013, down 44% on 2012 which itself Blu-ray Disc saw its proportion of shipments rise was down 13% on 2011. The value of these from 22% in 2012 to 29% in 2013, although the shipments also fell by 33%, worth £24 million. number of units shipped was down 17% to In addition to this some video rental distributors 669,000. While its average price at retail is £5.13 made smaller retail releases available on a rental higher than for DVD, the differential at a trade basis and these figures are excluded from this shipment level is near non-existent. This is due to total, making it difficult to ascertain the true the fact that most Blu-ray titles are rented at the number of shipments into the rental sector. Video same price point as DVD. In 2012 the differential companies looking to achieve manufacturing was £1.37 and in 2013 this reduced to just 80 efficiencies use this policy on occasion as it pence, with the average revenue generated from reduces the number of SKUs and eliminates the each Blu-ray Disc being £10.92, up 27 pence on need to produce two sets of sleeves for each 2012. This made Blu-ray Disc shipments worth channel (one for retail and one for rental). £7.3 million to video rental distributors in 2013, down £1.3 million.

78 BVA YB 14 Inner AW 27/05/2014 16:42 Page 79

OPTICAL DISC MANUFACTURING & DISTRIBUTION

SUPPLY CHAIN CONSULTING & DESIGN

PRODUCT DESIGN AND PROCUREMENT

CD, DVD & BLU-RAY MANUFACTURE

INVENTORY MANAGMENT

SUPPORT OF VENDOR MANAGED INVENTORY

      CASH COLLECTION

CUSTOMER SPECIFIC REPORTING

OFFICES IN FIVE KEY EUROPEAN LOCATIONS

www.edc-gmbh.com | [email protected] BVA YB 14 Inner AW 27/05/2014 16:42 Page 80

RENTAL Company shares – physical formats

Company shares - total disc rental 2013

Value Volume

Universal Pictures 12.4% Universal Pictures 12.9%

Elevation Sales 11.2% Elevation Sales 11.6%

Warner 10.4% 20th Century Fox 10.7%

20th Century Fox 9.7% Warner 10.7%

Entertainment One 9.3% Entertainment One 8.5%

Sony Pictures 7.8% Sony Pictures 7.8%

Paramount 7.3% Paramount 7.6%

Walt Disney 5.3% Walt Disney 5.9%

EIV 4.4% EIV 4.5%

Momentum 4.0% Momentum 4.1%

BBC Worldwide 1.6% BBC Worldwide 1.5%

Channel 4 DVD 0.7% Channel 4 DVD 0.6%

Other 15.8% Other 13.6%

Source: Kantar Worldpanel

Note: StudioCanal (formerly Optimum) and Lionsgate are both distributed by Elevation Sales.

• Universal leaps into top position 34% of their volume, but for Elevation their top • Elevation takes 2nd spot despite only one 10 account for only 29% of volume. We also see title in top 20 about 20% more titles coming through under Elevation than for Warner, making up the share • Length of slate as important as number of gap. blockbusters Fourth place was claimed by 20th Century Fox, According to Kantar Worldpanel, Universal was with 9.7% share by value with Skyfall, Taken 2 the best-performing physical rental distributor in and Life of Pi all in the chart. Entertainment One, 2013, up from fourth place in 2012, increasing its who distributed Looper, the top renting title on share from 9.2% to 12.4% market share by value. disc of the year, was in fifth place. Sixth placed It benefitted from three titles in the Top 20: Ted, Sony’s top 10 titles account for 40% of their Oblivion and The Bourne Legacy. volume. In second place with 11.2% was last year’s number The above overall rankings were mirrored in the one, Elevation, who distribute for StudioCanal analysis of market shares for discs rented online and Lionsgate, the latter having Olympus Has and delivered by post, however there was a slight Fallen in the Top 20, whilst in third place was difference in performance for over-the-counter 2012’s runner up, Warner, with 10.4%, featuring rentals, where 20th Century Fox took second The Hobbit: An Unexpected Journey, Argo, Game place to Universal, Elevation was third and Of Thrones and The Dark Knight Rises. Warner fourth. Interestingly, Warner’s top ten titles make up

80 BVA YB 14 Inner AW 27/05/2014 16:42 Page 81

Genre split – physical and digital formats RENTAL

Shares by genre – 2013 Volume

• Film Action/Adventure most Disc rental popular disc rental genre

Action/Adventure 18% • TV most popular VoD rental Comedy 17% • Film Comedy popular in both Drama 15% formats Thriller 11% Consumers have different preferences in TV 10% the type of content they like to view, depending on whether they rent a Children's 10% physical disc or use Video-on-Demand Horror 8% (VoD), reflecting also the different Sci-Fi 6% demographics of those renting. Other 4% According to Kantar Worldpanel, Action/Adventure films made up the most popular genre for those consumers renting video on disc in 2013, whilst TV was the most popular VoD genre. Film Comedy was the second most popular Video genre in both formats – physical and VoD – whilst Film Drama was the third most TV 25% popular on disc and Film Action the third Comedy 18% most popular VoD. TV was less popular in physical format, as has traditionally Action/Adventure 14% been the case, and Film Drama was less Thriller 11% popular on VoD. Children's 9% The best-renting Film Action titles were Drama 8% Fox’s Skyfall and Total Recall from Sony Sci-Fi 6% Pictures, Jack Reacher from Paramount,

Horror 5% whilst Universal’s Ted plus Entertainment in Video’s Silver Linings Playbook were Other 4% the best rentals in Film Comedy. Paramount’s Dexter, Fox’s 24 and Prison Break and Warner’s Game of Thrones

Source: Kantar Worldpanel were the top renting TV shows and Based on volume. Sony’s Django Unchained the leading Digital rental includes all VoD and subscription services. Film Drama. There were 354 titles released by video companies for rental only in 2013, compared to 463 in 2012, according to West10 Entertainment. This included 237 on DVD and 117 on Blu-ray Disc.

81 BVA YB 14 Inner AW 27/05/2014 16:42 Page 82

RENTAL Rental charts

2013 total rental top 10 – volume (Includes both disc and VoD rentals)

Pos Title Company 1 Breaking Bad Sony Pictures 2 Dexter Paramount 3 Skyfall 20th Century Fox 4 Looper Entertainment One 5 The Hobbit: An Unexpected Journey Warner 6 24 20th Century Fox 7 Prison Break 20th Century Fox 8 Taken 2 20th Century Fox 9 Jack Reacher Paramount 10 Argo Warner

2013 digital rental top 10 – volume

Pos Title Company 1 Breaking Bad Sony Pictures 2 Dexter Paramount 3 Prison Break 20th Century Fox 4 24 20th Century Fox 5 Skyfall 20th Century Fox 6 BBC Worldwide 7 The Hobbit: An Unexpected Journey Warner 8 Battlestar Galactica Universal Pictures 9 Futurama 20th Century Fox 10 Criminal Minds Paramount

Source: Kantar Worldpanel Digital rental includes all VoD and subscription services.

Sony Pictures’ BAFTA-winning Breaking Bad was Third overall was 20th Century Fox’s Skyfall the most popular rental title of 2013 and also the which also achieved second in the disc rental number one on Video-on-Demand (VoD) services chart and fourth was the Sci-Fi title Looper, from over the year, according to Kantar Worldpanel, Entertainment One, which came top of the disc although it did not appear in the disc rental chart rental chart by volume. (see page 84). Amazon’s LOVEFiLM, with its online disc rental Another TV show, Paramount’s Dexter, was and VoD service (now branded Prime Instant second overall and second in the VoD chart, again Video), took 44% of the total rental market in not appearing in the disc rental chart. 2013, followed by Blockbuster with 15% and Netflix with 14%.

82 BVA YB 14 Inner AW 27/05/2014 16:42 Page 83

Q DIGITAL Q PHYSICAL Q THEATRICAL

THE ENTERTAINMENT BUSINESS IN HIGH DEFINITION BVA YB 14 Inner AW 27/05/2014 16:42 Page 84

RENTAL Disc rental charts

2013 Online disc rental top 20 Volume

Position Title Company 1 Looper Entertainment One 2 Law & Order Warner 3 Game Of Thrones Warner 4 Ted Universal Pictures 5 Jack Reacher Paramount 6 Taken 2 20th Century Fox 7 Total Recall Elevation Sales 8 Django Unchained Sony Pictures 9 Flight Paramount 10 Lawless Entertainment One 11 Silver Linings Playbook EIV 12 Olympus Elevation Sales/Lionsgate 13 The Bourne Legacy Universal Pictures 14 The Sweeney Entertainment One 15 Star Trek Into Darkness Paramount 16 The Hobbit: An Unexpected Journey Warner 17 Snow White And The Huntsman Universal Pictures 18 Argo Warner 19 Men In Black 3 Sony Pictures 20 Skyfall 20th Century Fox

Source: Kantar Worldpanel

2013 Over-the-counter disc rental top 20 Volume

Position Title Company 1 Skyfall 20th Century Fox 2 Looper Entertainment One 3 The Hobbit: An Unexpected Journey Warner 4 Taken 2 20th Century Fox 5 Jack Reacher Paramount 6 Oblivion Universal Pictures 7 Silver Linings Playbook EIV 8 Total Recall Sony Pictures 9 Argo Warner 10 Olympus Has Fallen Elevation Sales/Lionsgate 11 Django Unchained Sony Pictures 12 Ted Universal Pictures 13 Pitch Perfect Universal Pictures 14 The Sweeney Entertainment One 15 Identity Thief Universal Pictures 16 Lawless Entertainment One 17 The Dark Knight Rises Warner 18 House At The End Of The Street Entertainment One 19 ParaNorman Universal Pictures 20 Life Of Pi 20th Century Fox

Source: Kantar Worldpanel

84 BVA YB 14 Inner AW 27/05/2014 16:42 Page 85

Rentailer shares – physical formats RENTAL

Source of disc rentals – 2013

• LOVEFiLM dominates market LOVEFiLM.com 52.3% • One in 10 consumers claim to rent a Blockbuster Video 20.0% disc in 2013 Library 12.6% • Market valued at £197 million Blockbuster.co.uk 7.3% Amazon’s LOVEFiLM-branded service Other Video/Game dominated the disc rental market, Rental Shop 3.7% accounting for 52% of all transactions in 2013, according to Kantar Worldpanel, up Other Internet 1.5% from 43% in 2012. LOVEFiLM also Tesco 0.7% benefitted from a presence within digital rental, offering a subscription Video-on- Other 1.9% Demand service in 2013, although this has now been rebranded as Prime Instant Video. The only other significant player was Blockbuster with 27% market share, which Source of disc rentals – 2012 went into administration in January 2013, again in October and closed down completely its remaining 91 stores on 16th LOVEFiLM.com 43.0% December with the loss of 808 jobs, having Blockbuster Video 32.1% been unable to find a buyer for the group as a going concern. Before its troubles began Library 10.7% Blockbuster had 528 stores. Blockbuster.co.uk 5.2% Public libraries, capturing nearly 13%, Other Video/Game together with independent stores and online Rental Shop 2.0% services, make up the balance of transactions in a market estimated by IHS to Other Internet 1.4% be worth £197 million in 2013. Tesco 4.7% Kantar Worldpanel estimates that in 2013 Other 0.9% there were 4.9 million consumers who rented a disc - 10% of the GB adult population, down from 6.8 million in 2012. Based on volume. Figures may have been amended from 2013 Yearbook. As Video-on-Demand (VoD) increases in Source: Kantar Worldpanel consumer popularity due to its convenience and value for money, it is estimated by IHS that the total rental market worth £421 million in 2006 will have grown to around £680 million by 2016, primarily through online channels, while a lower number of rental discs will continue to be delivered by mail.

85 BVA YB 14 Inner AW 27/05/2014 16:42 Page 86

RENTAL Consumer behaviour – all physical and digital formats

Proportion of GB population who rent

Total rental 18.5% 18.9% VoD 13.4% 9.5% Any Disc rental 10.0% 13.8% 5.3% Over-the-counter rental 8.3% 6.5% Online rental 8.3%

Frequency of rental

Total rental 12.0% 10.1% VoD 7.6% 5.8% Any Disc rental 12.1% 9.9% Over-the-counter rental 8.0% 6.9% Online rental 12.1% 9.6%

Average number of rentals

Total rental 15.5% 13.5% VoD 9.6% 7.1% Any Disc rental 15.9% 13.5% Over-the-counter rental 11.3% 10.2% Online rental 15.1% 12.2%

2013 2012 Source: Kantar Worldpanel Digital rental includes subscription services. Total rental includes disc and digital.

• Nearly one in five people rent video Renters in GB overall tend to be aged 25-44, male and from social class C1. VoD users and those • Likely to be 25-44 years of age that rent discs online are more likely to be male • One in 10 VoD users are under 20 whereas those that rent discs over the counter are more evenly split between male and female. 18.5% of the GB population (so excluding Those that rent discs over the counter are also Northern Ireland) rented a video title in either more likely to be older, in the 35-54 age bracket. physical format or through Video-on-Demand An estimated 10% of VoD users are under 20 (VoD) services in 2013 according to Kantar years old, although this age group is more likely Worldpanel, who have revised their figure for to rent over the counter than using an online 2012 upwards from 17.2% (as published in the service. previous BVA Yearbook), to 18.9%. Those that rent discs using an online service are Around 10% rented a disc, down from 13.8%, and most likely to watch by themselves whereas 13.4% rented through a VoD service, up from those that rent over the counter are more likely 9.5%. On average, those who use physical to watch with their partner. formats rent more than VoD users, renting once a month and 16 titles during the year, compared to 7.6 times and 9.6 titles a year for VoD customers.

86 BVA YB 14 Inner AW 27/05/2014 16:44 Page 87 BVA YB 14 Inner AW 27/05/2014 16:44 Page 88

RENTAL Frequency – physical and digital formats

Frequency of renting 2013

Total disc rental Rental by post Over-the-counter VoD disc rental 4.5% 4.3% 6.9% 11.0% 16.9% 18.6% 34.3% 34.4% 17.3% 16.7% 51.4% 17.5% 18.1% 59.1% 18.4% 16.2%

33.0% 20.4% 34.0% 24.4% 14.7% 18.8%

27.0% 15.4% 23.2% 14.8% 40.9% 42.7% 37.4% 34.4% 11.9% 9.2% 10.0% 8.4% 4.6% 5.1% 8.1% 6.8% 5.1% 4.1% % Renters % Volume % Renters % Volume % Renters % Volume % Renters % Volume

Nominal (1-3) Monthly or Less (4-12) Up to Fortnightly (13-26) Fortnightly Plus (27-51) Weekly (52+)

Digital rental includes subscription services. Source: Kantar Worldpanel

• 1 in 12 who rent discs do so weekly of those who use rental stores did so just once per month or less. • Rental by post more prevalent One in fifteen consumers who rented online for • 4% of VoD users do so weekly delivery by post did so at least weekly, Some 8% of disc renters accounted for 41% of accounting for 34% of volume. However, 68% total volume in 2013, renting at least one title of those that rent from a shop did so just once per week through the year. The majority of per month or less. these renters, 67%, did so less frequently, Similarly, an even smaller proportion, just 4%, renting less than one per month and accounting of consumers that rent digitally through Video- for just 21% of volume. on-Demand (VoD) services did so at least One in twenty consumers who rented from a weekly, accounting for 37% of all volume, whilst shop, ie over the counter, did so at least weekly, 82% do so less than once per month. accounting for 43% of volume. Meanwhile, 78%

88 BVA YB 14 Inner AW 27/05/2014 16:44 Page 89

Consumer behaviour – physical and digital formats RENTAL

Consumer profile of video renters – 2013 Age Under 20 20-24 25-34 35-44 45-54 55-64 65-79

Any rental 7.0% 6.5% 24.6% 29.0% 18.9% 8.4% 5.5%

VoD 10.3% 7.1% 28.1% 28.1% 14.5% 7.3% 4.7%

Any Disc rental 4.4% 5.9% 21.8% 29.8% 22.5% 9.3% 6.2%

Rental by post 2.7% 5.3% 23.8% 33.0% 20.5% 9.1% 5.6%

Class

AB C1 C2 DE

Any rental 22.5% 39.8% 20.7% 16.9%

VoD 22.6% 40.9% 17.7% 18.8%

Any Disc rental 22.5% 39.0% 23.1% 15.4%

Rental by post 19.1% 39.3% 25.2% 16.4%

Gender Female Male

Any rental 36.5% 63.5%

VoD 28.2% 71.8%

Any Disc rental 43.1% 56.9%

Rental by post 37.8% 62.2%

Source: Kantar Worldpanel Figures based on the volumes of transactions. Digital rental includes subscriptions.

89 BVA YB 14 Inner A W 27/05/2014 16:44 Page 90

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- BVA YB 14 Inner AW 27/05/2014 16:44 Page 91

Hardware GENERAL

Dedicated video hardware sales and penetration

91.4% 90.4% 89.5% 88.0% DVD Players 84.7% 89.0% 78.7% 73.2% 70.8% 60.6% 44.4% 10.1 25.5% 9.5 8.1 7.8 12.4% 7.5 4.3% 6.7 7.0 0.9% 6.2 0.1% 5.4 3.8 4.3 3.3 2.0

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Blu-ray Players 17.6% 21.2% 12.4% 7.7% 3.7% 0.1% 1.1% 1.3 1.3 1.2 1.1 0.7 0.3 Sales (million) Penetration 0.0 2007 2008 2009 2010 2011 2012 2013

Source: GfK/BVA/IHS

• 90% of population can access a DVD- electronics product where no significant level of playing device innovation has been added. However, around two thirds of BD players are now being sold with 3D • In 2013 two thirds of Blu-ray players sold capability and altogether the installed base of 3D were 3D enabled BD players sold is close to 2 million. The The total UK consumer electronics market, which proportion of BD players sold which connect to accounts for all electrical (audio and video) the internet has risen from 57% of volume in hardware sold, has declined over the last six 2012 to 76% in 2013. years with 2013 down 14% to £3.9 billion. Blu-ray Home Theatre Systems account for 12% 3.3 million DVD players were sold in 2013, 1 million of BD player sales volume and were down fewer than in 2012 according to GfK, of which 78,000, driven by the advent of large Flat TVs, 44% were TV/DVD combi players. In excess of where screen average size has risen by about one 90% of the population have access to a device inch per year since 2000. Large, flat and thin TVs that can play DVDs in their household and more are nowadays likely to have more limited sound than 60 million DVD players have been sold in the as the TV bezel gets slimmed down to minimize last 10 years. the TV’s physical size and allow it to be wall mounted. This has driven down Home Theatre In 2013 1.2 million Blu-ray Disc (BD) players were sales and created demand for sound sold, down 100,000 on 2012. Over 5.5 million enhancements, such as the sound bar, up 138% have been sold, a substantial household year on year and cumulatively to just under 1 penetration when one adds the numbers of Blu- million units. Sound bars are increasingly capable ray compatible PlayStation devices to this. Since of receiving streamed music from another device DVDs can also be played on BD players, the and may well become the default music player for industry has a colossal installed base of disc the family room. players. The average price of the BD player fell 11% to £92 in 2013, typical of a consumer 91 BVA YB 14 Inner AW 27/05/2014 16:44 Page 92

GENERAL Hardware

Sales of internet-connectable devices

35m Media Gateways Smartphones 30m Tablets Laptops

25m Netbooks Desktop PCs Smart TVs 20m

15m

10m

5m

0 2007 2008 2009 2010 2011 2012 2013

Based on volume sales. Note GfK do not collect data from Apple. Source: GfK

Not included in the total consumer electronics Tablet growth continued throughout 2013, with 7 value figure above is the games console sector, million units sold in 2013, up 49% according to which in November 2013 saw the launch of new GfK. However this is under-reported since one consoles from Xbox and PlayStation, boosting major retailer does not share their sales data for volume sales by 50% in the final quarter. the tablet sector. The 7” “mini” screen size is predominant, however 10”+ is growing fast from Despite an overall volume decline of -18% for a low base. Cumulative volume sales suggest that total TV in 2013, sales of 40”+ screen size total tablet sales have not yet reached half of all remained the same whilst the 50”+ segment adults but once ownership levels reach around grew 21%, although fewer than 3 million two thirds of adults, sales are expected to slow households own a 50”+ screen. Just over 3,000 significantly. Average price fell 26% to £231 in Ultra-HD TVs were sold in the UK in 2013, with 2013, partly as a result of demand for smaller screen sizes averaging between 55” and 65”, at screen size models and the launch of the an average price of £3,500. accessible Hudl by Tesco.

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Technology intentions and ownership GENERAL

Consumer technology intentions – 2013 Consumer technology ownership – 2013

Blu-ray Player (not PS3) 2.1% DVD Player 73.2%

3D Blu-ray Player (not PS3) 1.1% Blu-ray Player (not PS3) 21.2%

iPod or Other MP3 1.5% 3D Blu-ray Player (not PS3) 6.0% Recordable DVD Player 23.0% Tablet 9.5% iPod or Other MP3 52.0% Reader 1.8% Tablet 56.1% 3D TV / 3D-Ready TV 2.2% eBook Reader 32.2% Internet / Smart TV 4.6% HD TV / HD Ready TV 65.7% 2.9% 3D TV / 3D-Ready TV 10.8% PlayStation 4 4.5% Internet / Smart TV 18.6% Sony PlayStation Vita 0.4% Laptop 79.2% Nintendo Wii U 0.9% Desktop Computer 53.8%

Nintendo 3DS 0.5% Sony PlayStation 3 / PS3 19.9% Sony PlayStation 4 / PS4 3.6%

None of the above 75.4% Sony PlayStation PSP 6.0% Sony PlayStation Vita 2.1% 23.3% XBox One 2.5% Nintendo Wii 36.6% Nintendo Wii U 2.1% Nintendo DS 22.9% Nintendo 3DS 7.8%

None of the above 2.2%

Source: Kantar Worldpanel Data based on individuals not households in Great Britain.

Laptop sales fell 14% to just over 3 million in 2013, partly due to the rise of tablets but mainly because most consumers who want a laptop have one already and in a period of economic uncertainty tend to delay replacement. Smartphone volumes grew a little in 2013 but remain just above the 18 million, with many contracts now on two year replacement cycle rather than one year or 18 months.

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GENERAL Leisure spending

UK leisure markets

Cable and £7.7bn Satellite Subscription £7.2bn £6.9bn

£3.8bn TV Licence £3.8bn £3.8bn

£4.1bn Internet Subscriptions £3.5bn £3.2bn 2013 £2.2bn 2012 Video Entertainment £2.2bn 2011 £2.3bn

£2.2bn Games Software £2.1bn £2.2bn

£1.1bn Cinema £1.1bn £1.0bn

£0.7bn Music £0.7bn £0.8bn

Source: IHS/ERA Note: Some figures may vary from those previously reported due to more complete data availability and/or methodological revisions. Proportions rounded.

Video entertainment is the largest sector of consistent in terms of the types of content transactional consumer spend in the UK. tracked and is directly comparable to data Excluding the obligatory TV licence, video is the presented elsewhere within the Yearbook. third largest entertainment slice of UK Consumer spending on video remains dominated expenditure, according to IHS analysis. Cable and by the physical formats, buying and rental satellite subscriptions account for the largest combined, which generated 73% of the total. The share of total leisure spending in 2013, with UK remaining digital component accounted for 27% consumers spending £7.7 billion on these of 2013 consumer spending in the segment, up platforms, an increase of 6% compared to 2012. from 19% in 2012. The largest individual digital Subscriptions to internet service providers (ISPs) component was paid-for TV-VoD at 11%, though formed the second largest segment of consumer online retail, rental and digital subscriptions now spending, moving ahead of TV licence spending account for 16% of the total. The growth in online for the first time in 2013, at £4.1 billion and subscription services is most marked; the sector increasing by 18% in 2013. accounted for just 4% of the video market in 2012 but has, in one year, surpassed digital retail Video entertainment includes all formats, as the second largest alternative video purchased and rented, physical and digital video distribution platform. content accessed via cable or satellite television or online, as well as UK-based online subscription According to data from the Entertainment video services. Readers should note this section Retailers Association (ERA), consumer spending excludes sports, live events and adult content on games software grew 6.6% in 2013 to £2.2 available through some digital video services, to billion, with consumers spending more on digital, ensure that data presented in this section is now accounting for 53%, thanks to smartphone

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Leisure spending GENERAL

Video spending breakdown

2013 64% 9% 6% 9% 7% 4% 2%

2012 66% 11% 4% 4% 11% 3% 2%

1% 2011 73% 11% 3% 9% 2% 0.2%

Physical retail Physical rental Online retail Online rental Online subscription TV based VoD TV based sVoD

Source: IHS Note: Some figures may vary from those previously reported due to more complete data availability and/or methodological revisions.

and tablet ownership. Spending on software for cinematic experience. The category will continue static consoles grew 1.8% and fell 23% for to lift average prices but is now unlikely to inflate software on portable consoles. Both major ticket prices further. Further rises in price driven gaming systems launched their next generation by 3D will, as with peaks in attendance, be the consoles in November 2013 and as a result of the result of the strength of the 3D release slate. timing, sales of the PlayStation 4 and the Xbox Physical and digital music (not including One had little impact on the physical games streamed music rental subscriptions or mobile market in 2013, with few games available to personalisation) declined for a ninth successive purchase at launch. year, falling 5% to £652 million in retail value. As UK spending on cinema tickets fell 1.6% to £1.1 with video, and despite the enormous popularity billion in 2013, according to the CEA. Box-office of digital music, physical music formats still revenues worldwide tend to rise year after year account for the vast majority of consumer as ticket prices gradually increase in line with spending on music, 67% in 2013. Furthermore, inflation. The boost in box-office takings in recent the decline in physical music sales continues to years as a result of higher-priced 3D films slow with each successive year, suggesting a remains a persistent feature of the market. plateau in physical music sales may eventually be Though 3D ticket sales declined in 2013, this reached, according to IHS. category is now a consistent part of the

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GENERAL Cinema

Cinema admissions (millions) 176 171 174 172 173 167 165 162 164 169 165 156 157 143 139 135 139 124 124 114 115 100 104 97 84 95 76 79

6891 7891 8891 9891 0991 19 19 19 29 1993 19 59 19 79 19 99 20 50 91 96 02 30 02 6002 07 02 90 02 11 02 12 02 13 002 2 4991 8991 00021002 4002 8002 0102

UK box-office top 10 films – 2013 UK Cinema Cinema Release Video Release Title Distributor Revenue Date Date 1 Despicable Me 2 Universal £44.1m 28 Jun 2013 25 Nov 2013 2 Les Misérables Universal £38.7m 11 Jan 2013 13 May 2013 3 Iron Man 3 Walt Disney £34.6m 25 Apr 2013 9 Sep 2013 The Hobbit: The Desolation 4 Warner Bros £32.1m 13 Dec 2013 7 April 2014 Of Smaug The Hunger Games: Catching 5 Lionsgate UK £30.2m 21 Nov 2013 17 March 2014 Fire 6 Monsters University Walt Disney £28.8m 12 Jul 2013 11 Nov 2013 7 Man Of Steel Warner Bros £27.8m 14 Jun 2013 2 Dec 2013 8 Frozen Walt Disney £25.9m 6 Dec 2013 31 March 2014 9 Gravity Warner Bros £25.6m 7 Nov 2013 3 March 2014 10 The Croods 20th Century Fox £24.8m 22 Mar 2013 9 Dec 2013

Source: EDI Rentrak/CEA/OCC

• Cinema attendance up three fold on 30 years In the ten years from 1984 to 1993 attendances ago averaged 87 million per year, whilst in the ten years from 1994 to 2003 they averaged 142 • Weekends still the most popular time to visit million. In the past ten years (2004 to 2013) • December the best performing month of admissions have grown again to an average of 2013 167 million. There were 165 million UK cinema admissions in Whilst ticket prices have risen on average by 4% 2013, down 4.8%. This followed two years of per year in the past ten years, in 2013 they rose growth in 2011 and 2012, each of 1%. Cinema 2.5% to add to the 5% rise in 2012. 2010 saw the revenues were down 1.6% to £1.08 billion biggest recent increase in ticket prices at 9.4%. following a 6% rise in 2012 and a 5% rise in 2011. Prices in 2013 were on average £6.53 compared to £4.44 ten years before. Pricing has become a Commenting on the figures, Cinema Exhibitor key factor in the cinema market, with two-for-one Association (CEA) Chief Executive, Phil Clapp, deals and family tickets now joined by discount said: "It's clear that 2013 presented tough trading offers such as ‘Unlimited’ attendance for a conditions for the sector and the record-breaking monthly subscription of around £16 pcm. exploits of Skyfall at the tail-end of that year Meanwhile at the top end, premium prices for a meant that 2012 was always going to be a tough Digital 3D experience, VIP seating and Over 18s act to follow.” screenings can be as much as £20 per ticket, According to the CEA, from an historic high especially in London. The advent of these pricing immediately post-war of 1.64 billion in 1946, UK mechanisms means that fewer consumers are cinema admissions gradually declined to an all- actually paying the average price. time low of just 54 million in 1984. The advent of The weekend is still the most popular time to visit the multiplex and record levels of investment to the cinema, with 24% of all attendances on a improve the theatrical experience in the last Saturday followed by 17% on a Sunday and 16% thirty years have caused admissions to recover.

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Cinema GENERAL

UK box-office top 10 films – all time Gross Theatrical Release Videos Sold Title Video Release Date Takings Date exc box sets 1 Skyfall £102.8m 26 Oct 2012 18 Feb 2013 2.9m 2 Avatar £94m 17 Dec 2009 26 April 2010 3.7m 3 Toy Story 3 £73.8m 19 Jul 2010 22 Nov 2010 2.6m 4 Mamma Mia! The Movie £69.1m 18 Jul 2008 24 Nov 2008 6.4m 5 Titanic £69m 23 Jul 1998 19 Oct 1998 7.3m Harry Potter and the Deathly 6 £68.9m 15 Jul 2011 2 Dec 2011 2.7m Hallows: Part Two Harry Potter and the 7 £66m 16 Nov 2001 11 May 2002 5.2m Philosopher's Stone The Lord of the Rings: The 8 £62.7m 19 Dec 2001 6 Aug 2002 6.0m Fellowship of the Ring The Lord of the Rings: Return 9 £60.8m 17 Dec 2003 25 May 2004 3.9m of the King The Lord of the Rings: Two 10 £57.6m 18 Dec 2002 26 Aug 2003 4.8m Towers

Source: EDI/CEA/OCC

on a Friday. The popular two-for-one deals school holidays, whilst September was the worst mentioned above mean 14% of attendances are performing period with 9.8 million attendances, now on a Wednesday. the only one not to achieve double figures. Seasonality wasn’t a factor in 2013, with each Despicable Me 2, released at the end on June and quarter of the year accounting for about 25% of prior to the start of the school holidays, was the attendances. Attendances are traditionally title- biggest grossing release of 2013, with revenues led and 2013 was no exception. August had the of £44.1 million followed by Les Misérables with highest number of admissions, at 17.6 million £38.7 million, giving Universal the top two (10.7%) with releases such as The Smurfs 2, positions in 2013. By comparison the top two Percy Jackson: Sea of Monsters, Kick Ass 2, releases in 2012 were 20th Century Fox’s Skyfall Planes and One Direction: This Is Us. This was and Warner’s The Dark Knight Rises, with £102 followed by January with 17 million which saw million and £56 million respectively. Two other Quartet, The Impossible, Les Misérables, Django 2012 titles grossed higher revenues than Unchained, Monsters Inc and Lincoln. Despicable Me 2 in 2013, Marvel Avengers December was the third most popular month to Assemble (£52 million) and The Hobbit: An go to the cinema, achieving 15.7 million Unexpected Journey (£50 million), which shows attendances from releases as diverse as The that 2012 was a stronger year for blockbuster Class of ’92, Black Nativity, Frozen, Gravity, The cinematic releases than 2013. Indeed, the Top 10 Hobbit: The Desolation of Smaug, Anchorman 2, in 2013 generated a combined £312 million, whilst American Hustle, Moshi Monsters: The Movie, the Top 10 of 2012 generated £432 million, some Justin Bieber’s Believe and The Secret Life of 28% more. Walter Mitty. Another bright period for cinema in As such, the all-time UK box-office Top 10 remains 2013 was the month of May, with 15.6 million unchanged. Skyfall retains its position as the admissions, which saw the release of Dead Man highest-grossing film in UK box-office history, not Down, Labyrinth, Star Trek Into Darkness, Fast & adjusting for inflation. The film had come on the Furious 6, The Great Gatsby, The Hangover: Part 50th anniversary of the first 007 movie, Dr. No, 3 and Epic. and four years after Quantum of Solace. Avatar Each of the top four performing months remains second and Toy Story 3 the third best coincided either in whole or in part with the performing film in the UK.

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GENERAL International markets

Consumer spending by format 2013 (€m)

Title Physical retail Physical rental Digital and TV VoD

UK €1,773m €243m €752m Germany €1,478m €215m €283m France €929m €22m €290m Nordic €535m €134m €251m Other Western Europe €418m €79m €131m Benelux €363m €20m €166m Italy €189m €45m €70m Spain €129m €47m €46m Central and Eastern Europe €247m €8m €100m

Source: IHS

Consumer spending on video in all its forms to shut the remainder of its company-owned increased in the US for a second consecutive Blockbuster stores. Having closed the majority of year, with total 2013 consumer spending on video the chain’s store base in 2012 this effectively entertainment growing 0.5% to $19.4 billion ended the era of traditional video store rentals as according to IHS, the global information a national-level business in the US. Despite this, company. physical rental remains popular among US consumers; relatively strong regional video rental The US video entertainment market is radically chains and independent video stores drove different to that of Europe in a number of key consumer spending of $1 billion through 2013. areas: video consumption per person is far higher, physical rental is a larger component of However, US consumers have other options for the total market (accounting for 23% of all physical rental. Kiosk disc rental giant consumer spending) and the adoption of both continued to grow, despite its near saturation of digital delivery mechanisms and Blu-ray is more the US market, extending operations in Canada advanced as a result of earlier launches in the and Mexico, securing locations with more territory. Though Europe has a larger population convenience store chains in both countries. and household base, the US is not divided by The number of subscribers to rent-by-mail differing licensing agreements and language operations, dominated by Netflix in the US, barriers. declined substantially in 2013 from 8 million to American consumers spent $5.3 billion buying 6.8 million by year-end. Whilst this marks a DVDs in 2013, 17% less than in 2012. DVD volumes second year of double digit subscriber decline for also declined, albeit more slowly, down 8% to the rent-by-mail channel, Netflix subscribers 500 million units. Consumer spending on buying continue to migrate to its less profitable Blu-ray Discs grew 10% in 2013, bringing sales of streaming service through digital only the format to US consumers to $2.5 billion. subscription packages. Consumer spending via Digital video retail (EST/DTO) accounted for $1.3 sVoD in the US increased 31%, with consumers billion in consumer spending, an increase of 38% paying $3.2 billion to gain access to video compared to 2012. A number of longer term streaming. Online digital subscription is the third industry initiatives promoted digital video largest channel for video consumption in the US, ownership to US consumers through 2013. The behind physical retail and rental. shortening of the digital retail window by major The growth of consumer spending through the US studios in 2012, the launch of “Digital HD” and transactional online digital rental sector the support of the UltraViolet digital locker increased substantially, up 40% to $0.6 billion in system by major retailers such as Walmart were 2013. Consumer spending on video through TV- contributing factors. VoD services (transactional and subscription) DISH Network, owner of the Blockbuster rental remained stable for the second successive year chain, announced in November 2013 that it was in 2013 at $1.9 billion.

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International markets GENERAL

Consumer spending on physical & digital video - USA v Europe Total spend USA EUROPE $ BILLION BILLION 19.8 19.3 19.4 9.6 9.1 9.0

201120122013 201120122013

Source: IHS USA EUROPE 0.2 0.4 2.2 1.0 0.8 1.9 1.1 2.9 0.8 1.0 1.5 1.5 1.1 1.0 0.8 1.1 0.2 0.3 0.4 4.7 1.2 Total European 0.5 consumer3.9 spending0.7 3.6 on 1.0 video Consumer rental and retail spending1.4 on the Blu- entertainment continued to experience single ray Disc (BD) format increased through 2013 to 1.6 1.8 2.0 digit decline in 2013. When viewed in fixed euro 1.6 billion, up 10.5%. Though the closure of video 5.6 € 6.0 exchange rates, consumer5.0 spending4.1 on video in rental chains in key5.4 European4.7 markets has all its forms2011 fell 1.5% 20to12 €9 billion, 20according13 to hampered2011 the growth2012 of BD rental,2013 the format data compiled by IHS. remains popular among rent-by-mail consumers. Retail DVD Retail BD Digital retail Physical rentaBDl rentalTV-VoD spending Digital grew rental 5% (inc in subscriptions) 2013, with rental The main driver of this decline, as in previous transactions increasing to 56 million in the year. years, was the continuing fall in consumer The format has also seen growth at retail with spending on DVD. Combined retail and rental the number of Blu-ray Discs sold to consumers consumer spending on the format fell to 5.3 € increasing to 87 million in 2013 and generating billion, a decline of 13.8% compared to 2012. 1.4 billion in consumer spending. Unlike the US, the European decline in DVD € spending has been experienced consistently by For European video the main area of growth in both retail and rental sectors for a number of consumer spending was experienced through years. Physical rental was never as strong or as digital platforms. Combined, the digital video pervasive a habit as in the US, so the market was platforms, TV-VoD, digital retail (EST/DTO), digital quick to decline in the face of competition from rental (iVoD) and digital subscription (OTT or falling DVD retail prices in the early 21st century. sVoD services), grew by 36% from €1.5 billion in Indeed, DVD rental accounted for just 7% of 2012 to €2.1 billion in 2013. European consumer spending on video in 2013, a direct result of continuing rental store closures The majority of digital spending in 2013 was across all European markets, which included the accounted for by TV-based VOD services. 2013 closure of Blockbuster UK. European Pay TV subscribers spent €1 billion accessing video content through transactional DVD retail continues to be similarly affected, and subscription VoD services in 2013, an firstly by closures of specialist video stores, increase of 14% over 2012. typified by HMV in the UK, and by those retailers still stocking DVD reducing their stock and the Digital retail and rental grew by 32% and 37%, to shelf space allocated to the format. European €367 million and €279 million respectively. The consumer spending on retail DVD declined 12.8%, greatest level of digital growth came from sVoD services, such as Netflix, LOVEFiLM and NowTV from €5.3 billion in 2012 to €4.7 billion in 2013. This picture of decline was not observed in all in the UK. The channel recorded 137% growth in European territories in 2013. In contrast to the 2013, generating €483 million in consumer broader picture, the German DVD market spending, up from €204 million in 2012. reported only marginal declines in 2013 with DVD The UK remains the single biggest video market spending (down 0.7%) whilst Blu-ray Disc spend within Europe, accounting for 31% of combined increased 40% and as a result total spending on retail and rental consumer spending across all video in all its forms increased 10.5%. platforms in 2013.

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DIRECTORY

BVA Full Members

Abbey Home Media Group Ltd HiT Entertainment 435-437 Edgware Road, London W2 1TH 5th Floor, Maple House, Tel: 020 7563 3910 149 Tottenham Court Road, London W1T 7NF www.abbeyhomemedia.com Tel: 020 7554 2500 Managing Director: Anne Miles www.hitentertainment.com Director UK Home Entertainment, BBC Worldwide Consumer Products UK & Eire: Simon Riches 33 Foley Street, London W1W 7TL Tel: 020 7612 3000 ITV Studios Home Entertainment www.bbcworldwide.com The London Television Centre, Sales Director: Brian Hill Upper Ground, London SE1 9LT Tel: 020 7157 3000 (BFI) www.itvstudios.com 21 Stephen Street, Director of Home Entertainment: Kevin Morgan London W1T 1LN Tel: 020 7255 1444 Kaleidoscope Home Entertainment www.bfi.org.uk 104-108 Oxford Street, London W1D 1LP Head of DVD: Sam Dunn Tel: 020 3397 4410 www.kaleidoscopehomeentertainment.com Channel 4 DVD CEO: Spencer Pollard 124 Horseferry Road, London SW1P 2TX Tel: 020 7396 4444 Koch Media Ltd www.channel4.com 2nd Floor, Building 5, 50 Brook Green, Head of DVD: David Root W6 7BJ Tel: 01256 385 200 Eagle Rock Entertainment Ltd www.kochmedia.co.uk Eagle House, 22 Armoury Way, Managing Director: Craig McNicol Wandsworth, London SW18 1EZ Tel: 020 8870 5670 Lionsgate Home Entertainment www.eagle-rock.com 60 Charlotte Street, London W1T 2NU UK & International Marketing Manager: Ian Rowe Tel: 020 7299 8800 www.lionsgatefilms.co.uk Elevation Sales Ltd Managing Director 4th Floor, 172 Tottenham Court Road, London W1T 7DL Home Entertainment: Nicola Pearcey Tel: 020 3006 8383 www.elevationsales.co.uk Paramount Home Media Distribution UK Managing Director: Kevin Dersley Building 5, Chiswick Park, 566 Chiswick High Road, London W4 5YF FremantleMedia Tel: 020 3184 2300 1 Stephen Street, London W1T 1AL www.paramountpictures.co.uk Tel: 020 7691 6000 Managing Director: Charlie McAuley www.fremantlemedia.com Catalogue and Market Insight Manager: Simply Media Grahame Davidson Highlight House, 57 Margaret Street London W1W 8SJ Tel: 020 3542 3722 www.simplymedia.tv Commercial Director: Steve Kincaid

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DIRECTORY

Sony Pictures Home Entertainment Universal Pictures (UK) Ltd Sony Pictures Europe House, 1 Central St Giles, St Giles High Street, 25 Golden Square, London W1F 9LU London WC2H 8NU Tel: 020 7533 1000 Tel: 0203 618 8000 www.sonypictures.co.uk www.universalpictures.co.uk Senior Vice President Northern Europe: Kim Overall Managing Director: Ian Foster

StudioCanal Limited 50 Marshall Street, London W1F 9BQ 3 Queen Caroline Street, London W6 9PE Tel: 020 7534 2700 Tel: 020 8222 1000 www.studiocanal.co.uk www.disney.co.uk General Manager Home Entertainment: John Rodden Category Commercial Director: Dean Pappadakis

Twentieth Century Fox Home Entertainment Warner Home Entertainment Twentieth Century House, 31-32 Soho Square, Warner House, 98 Theobald’s Road, London W1D 3AP London WC1X 8WB Tel: 020 7753 8686 Tel: 020 7984 5000 www.fox.co.uk www.warnerbros.co.uk Managing Director: Robert Price Managing Director: John Stanley

Set in the of London’s bustling shopping and theatre district, the Courthouse Hotel London is a former Magistrates Court, retaining many of the original features including prison cells in the bar and a courtroom restaurant.

Facilities include 116 bedrooms and suites, 2 Restaurants, Lounge Bar, Spa, Swimming Pool and a variety of Function Rooms including one of London’s largest and most exclusive hotel cinemas with HD and 3D capability.

19-21 Great Marlborough Street, London, W1F 7HL Tel: +44(0)20 7297 5555 Fax: +44(0)20 7297 5566 Email [email protected]

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DIRECTORY

Associate Members

AE Create Once Upon A Time Tel: 020 3290 2468 Tel: 020 7534 8804 www.aecreate.com www.onceuponlondon.com

ASG Europe Panasonic UK Ltd Tel: 020 7602 9119 Tel: 01344 862 444 www.asg-worldwide.com www.panasonic.co.uk

Blueprint London Premier Tel: 020 7183 9666 Tel: 020 7292 8330 www.blueprint-london.com www.premiercomms.com

Bonded Services Limited Saffron Digital Tel: 020 8897 5535 020 7404 6333 www.bonded.com www.saffrondigital.com

Cinram Logistics UK Ltd (UK) Ltd Tel: 01296 426 151 Tel: 01932 455 551 www.cinram.com www.samsung.com

Delga Press Sony DADC Tel: 01634 227 000 Tel: 020 7462 6222 www.delga.co.uk www.sonydadc.com

The Delta Group Technicolor Disc Services International Tel: 020 8498 4400 Tel: 020 8987 7800 www.thedeltagroup.co.uk www.technicolor.com

EDC Entertainment Toshiba Information Systems UK Ltd Tel: 01202 524875 Tel: 01932 841 600 www.edc-gmbh.com www.toshiba.co.uk

Heller Consulting Ltd. VDC Group Tel: 07711 224053 Tel: 020 8963 3555 www.hellerconsulting.co.uk www.vdcgroup.co.uk

Maglabs West10 Entertainment Tel: 0870 314 1234 Tel: 020 3393 8291 www.maglabs.net www.west10entertainment.com

MPO UK Ltd Tel: 020 8956 2727 www.mpo.co.uk

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DIRECTORY

Useful Contacts

Alliance for Intellectual Property IHS www.allianceforip.co.uk www.technology.ihs.com

British Recorded Music Industry (BPI) Industry Trust for IP Awareness www.bpi.co.uk www.industrytrust.co.uk

British Board of Film Classification (BBFC) Intellectual Property Office www.bbfc.co.uk www.ipo.gov.uk

British Screen Advisory Council (BSAC) International Video Federation (IVF) www.bsac.uk.com www.ivf-video.org

British Video Association (BVA) IPSOS www.bva.org.uk www.ipsos-mori.com Kantar Worldpanel UK Cinema Exhibitors’ Association Ltd (CEA) www.kantarworldpanel.com www.cinemauk.org.uk MediaTel Guide to legal digital services www.mediatel.co.uk www.thecontentmap.com Millward Brown Decipher Media Research www.millwardbrown.com www.decipher.co.uk Motion Picture Association of America (MPAA) Department for Culture, Media and Sport www.mpaa.org www.culture.gov.uk MTM www.mtmlondon.com Digital Entertainment Group (DEG) www.degonline.org The Nursery Research & Planning www.the-nursery.net Digital Entertainment Group Europe (DEGE) www.degeurope.com Official Charts Company www.theofficialcharts.com Enders Analysis www.endersanalysis.com Oxford Economics www.oxfordeconomics.com Entertainment Retailers Association (ERA) www.eraltd.org The Association for UK Interactive Entertainment (UKIE) Federation Against Copyright Theft (FACT) www.ukie.info www.fact-uk.org.uk UK Screen Association Film Distributors’ Association Ltd (FDA) www.ukscreenassociation.co.uk www.launchingfilms.com Video Standards Council (VSC) Find Any Film www.videostandards.org.uk www.findanyfilm.com

Futuresource Consulting Ltd www.futuresource-consulting.com GfK Retail and Technology UK www.gfkrt.com

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DIRECTORY

With grateful thanks

Written by Giles Finnemore, Yearbook published by Insight Consultant to the BVA British Video Association (BVA)

3 Soho Square LONDON W1D 3HD Tel: 020 7439 8817

www.bva.org.uk

For general BVA enquiries, contact [email protected]

No part of this publication may be transmitted The BVA would like to thank the following for in any form or by any means electronic or their help in compiling this Yearbook: mechanical including photocopying and recording without permission in writing. Cinema Exhibitors’ Association Decipher Media Research BVA members receive complimentary copies of GfK the Yearbook. If you are interested in joining the IHS British Video Association, please contact us. Julie Harriss © British Video Association Kantar Worldpanel All rights reserved MediaTel Millward Brown ISBN 978-0-9928193-4-7 Official Charts Company Simon Heller The Nursery Research & Planning West10 Entertainment

Publishing Editor: Lavinia Carey, Director General of the BVA.

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