In the home entertainment space, consumer spending on software rose for the first time since beginning a steady decline in 2006. The Digital Entertainment Group reports that at the end of the third quarter 2012 consumer spending on home entertainment as a whole — including disc, rental and digital distribution — was up by about 1 percent. IHS Screen Digest predicts that spending will total $18.7 billion, 5 percent higher than last year.

According to Lori MacPherson, EVP of home entertainment for The Walt Disney Studios, “the most encouraging development was the continued strong growth of Blu-ray Disc and the convergence of entertainment experiences afforded by the connected Blu-ray player.”

“We also created new opportunities for consumers to extend their enjoyment through added offerings on physical product that provide a bridge to digital experiences, such as digital comic books and music downloads,” she added.

2012 seems to have been the year that multiple distribution methods began to work together instead of fighting each other. “Instead of cannibalizing each other, they began to feed off each other. And the result was a multi-channel, multi-device approach that makes it easier than ever for consumers to digest entertainment in their homes — or on the go,” writes The Hollywood Reporter.

Ultraviolet is seeing growth and success, Blu-ray sales did well this year and video streaming saw “stunning growth,” according to THR, with “a near-tripling in consumer spending, to more than $1.7 billion” this year.

“UltraViolet is positioned to explode,” said Ron Sanders, president of both Warner Home Video and the DEG. “Account registrations are growing at a remarkable pace, and we can expect to see a vast expansion in UltraViolet-enabled titles. We’re also looking forward to a significant number of retailers and platforms offering UltraViolet products next year, each one promoting UltraViolet in their own way, which will further position the industry for growth.”

2012 may also be remembered as the year studios came to terms with Netflix and Redbox. Relationships were strained by concerns that Netflix disc rentals and Redbox kiosks were cannibalizing sellthrough, concerns that led to withholding product from the services and even legal action. “Ultimately the dust settled and the relationship now is one of peaceful co-existence, with some studios striking deals with the two services in which discs are delayed in return for lower prices,” reports THR.