Disney Movies Anywhere announcement looks grim for UltraViolet

disney movies anywhereWith Disney Movies Anywhere announcement, things look grim for UltraViolet

Disney has been the lone hold-out from the movie industry’s solution for online sales, UltraViolet. Does the Disney Movies Anywhere announcement and close partnership with Apple spell the ultimate demise of UltraViolet?

2013 was a good year for online movie sales. The business grew 50% last year, to $1.2 billion. On the face of it UltraViolet also had a good 2013, increasing the number of accounts 65% to 15 million. Unfortunately, most of the online movie sales did not end up in those new UV accounts.

Apple’s iTunes store dominates the electronic sales of movies. NPD group last year reported that iTunes had a two-thirds share of movie and TV show sales. What’s more the number of iTunes accounts reached 600 million last year, growing at a reported 500,000 a day.

So, what drove the increase in UV accounts? Disk sales. Many DVD and Blu-ray disks now include a code to gain access to a digital version of the movie in UV format. However, the trajectory of DVD sales is very different from online movie sales. Physical disk sales plummeted 8% last year.

In the light of these numbers, Disney’s move to launch Disney Movies Anywhere (DMA) with close affiliation to iTunes –Read more: With Disney Movies Anywhere announcement, things look grim for UltraViolet | nScreenMedianScreenMedia

 

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