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Digital Download Overtakes Blu-ray for First Time

It’s not that Blu-ray isn’t finally racing along… it’s more the danger that digital download is sprinting faster and is threatening to permanently overtake Blu-ray in the future. Digital distribution platforms (streaming video) for home entertainment (including video-on-demand) outpaced Blu-ray discs in US consumer spending during the first half of 2010, passing the $1 billion mark for the first time, according to new figures released by DEG: The Digital Entertainment Group.

Electronic sell-through increased 37 percent year-over-year to $285 million between January and June, as video-on-demand (VOD) rose 19 percent to $865 million, for a combined growth of 23 percent to $1.1 billion.

Sales and rentals of Blu-ray discs reached a combined total of $982 million for the six-month period. Blu-ray sell-through increased 84 percent year-over-year to $733 million during the half.

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