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Overall Home Entertainment Down 5% in First Half

Summary.... Despite Studio CEO concerns about declining DVD sales, consumers haven't given up the movie habit. The first half results for packaged video continue to reflect an economy in deep recession, and sales of Blu-ray Discs, while growing, were not enough to make up for a 14% drop in DVD retail spending. Consumer spending on video rental is up, however, and when the increases in on-demand movie consumption are factored in, the overall picture brightens significantly. It was in the second half of 2008 that the recession hit the video market in full force, so the business is looking at easier comps through the rest of the year. If the economy turns the corner in the second half, those same CEOs may be breathing a sign of relief come December.
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