Home video hardware shipments declined by 24% year-on-year in 2022. This is a poorer performance than previously expected, primarily due to changes in the macroeconomic outlook, which has become substantially weaker since the last forecast update. The relevance of DVD and Blu-ray players also continues to be challenged by the increasing uptake of subscription video on demand (SVoD) and advertising-based video on demand (AVoD) services.
However, there is a persistent segment of consumers who still prefer physical media over digital media. This can be due to a poor internet connection which restricts them from accessing online content. Alternatively, some consumers have built up libraries of physical media and are willing to replace players to continue to enjoy their content.
While still experiencing decline, the Russian market has seen volume supported more than previously expected. As international streaming players such as Netflix and Disney have boycotted the Russian market, following the invasion of Ukraine, Russian consumers have been forced to pivot to physical media. In addition, ownership in physical media friendly countries such as Japan is also expected to remain comparably high compared to other developed markets. While overall trends are negative, Japan’s continued demand for physical media is set to maintain a higher level of replacement purchases than in other markets.