Market Insight

Japanese retail video sales set to fall in 2014

January 20, 2015  | Subscribers Only

David Scott David Scott Associate Director – Research and Analysis, Service Providers & Platforms
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  • Total retail video sales down 2.0%; revenues down 6.8% in January to November 2014
  • Shipment of retail BDs up 13% and revenues up 6%
  • Retail DVD shipments sales down 10%; DVD revenues down 18%

 

Japanese retail shipments from the combined Blu-ray Disc (BD) and DVD formats have continued downward according to IHS analysis of January to November 2014 results from the Japan Video Software Association (JVA). JVA member retail video shipments and revenues fell 2.0% and 6.8% respectively over the period, compared with the corresponding period a year earlier.

Retail DVD unit shipments declined 9.6% to 26.1 million units between January and November 2014 compared with the previous year. Revenues slumped 17.6% to ¥71.5 billion ($732 million) dragged down by an 8.8% decline in the average trade price of a retail DVD to ¥2,734 ($28.00). The decline in unit shipments was slower than expected and as such, we have revised upward our full-year 2014 figure from 35.1 million to 36.0 million units. The decline in average price outpaced expectations and consequently IHS has lowered its retail DVD revenue forecast slightly from ¥107 billion ($1.1 billion) to ¥105 billion ($1.1 billion). This reflects IHS analysis of the JVA data, grossed up to reflect the total market.

Meanwhile, JVA indicates that nearly 17.0 million BD units shipped to trade between January and November 2014, up 12.7% compared with the previous year. Revenues increased 6.0% to ¥77.2 billion ($791 million) over the same period. This growth is in line with expectations and as such, we have made only minor adjustments to our full-year figures for 2014. IHS expects retail BD shipments to increase 12.5% to 20.9 million in 2014, whilst revenues will rise 7.0% to ¥96.8 billion ($991 million).   

At consumer level, our total retail sales figure for 2014 is now 52.2 million, up from 51.6 million whilst total retail spending on the combined BD and DVD formats is lower at ¥218 billion ($2.2 billion), down from ¥222 billion ($2.3 billion).

Subscribers should note that our take on the performance of the Japanese retail video market in 2014 will follow shortly after our review of the JVA results for December 2014. IHS expects the JVA to publish its year-end retail video results in February 2015.

Geography
Asia Pacific Japan
Research by Market
Media & Advertising
Category
Video
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