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عضو نشط
- التسجيل
- 17 نوفمبر 2002
- المشاركات
- 212
Explosive Growth in the DVD Industry
Due to the extremely high theatre type quality DVDs provide, DVD has become the avenue consumers wish to use to watch home videos. This is even more evident by the skyrocketing sales of DVD players. Sales of DVD players were up 50% in 2002 to over 25 million players. The present year’s projections expect an even more substantial increase in the DVD industry. In the 1st quarter alone, consumers have purchased more than 4 million DVD players, a 24% increase over the 1st quarter of 2002, bringing the total number of DVD players to over 60 million.
The growth of DVDs over the past 2 years has been remarkable to say the least. In 2002, consumers spent over $20 billion buying and renting DVDs compared to just over $9 billion spent at the box offices. That figure represents 57% of home video consumer spending for 2002. Breaking the numbers down further, DVD rentals and sales surged to $11.6 billion, a 71% increase in 2002. In fact, over 685 million DVD units shipped in 2002, while a total of 675 million were shipped in the previous five years. In the 1st quarter of 2003, over 230 million units were sent to retail, a 93% increase.
So why the tremendous interest in DVD? Consumers appreciate the higher quality of both picture and sound that DVD produces versus VHS, and comparable prices for purchasing and renting both players and titles. DVDs also offer immediate scene access, relieving the need to fast forward or rewind, and often offer special features such as behind-the-scene commentary, as well as the ability to control camera angles. Unlike VHS, consumers may also have portable DVD players or play videos on computers from any location.
The popularity of DVDs can be seen just by a visit to your local Blockbuster Video (NYSE: BBI) or Best Buy (NYSE: BBY). A year ago, VHS tapes accounted for the majority of shelf space, now DVDs dominate the shelf space, especially for newly released titles. And the DVD craze is not only for movies. The industry is seeing record growth in the sales of music videos, fitness, television episodes, as well as documentary and special interests. In a news release on the DVD Entertainment Group website, Bob Chapek, president, Buena Vista Home Entertainment and president, DVD Entertainment Group, states, “Consumers are purchasing unprecedented numbers of DVDs. This, in combination with a dramatically increasing base of DVD households, ensures future record-smashing performance of the format over the next several years.”
Due to the extremely high theatre type quality DVDs provide, DVD has become the avenue consumers wish to use to watch home videos. This is even more evident by the skyrocketing sales of DVD players. Sales of DVD players were up 50% in 2002 to over 25 million players. The present year’s projections expect an even more substantial increase in the DVD industry. In the 1st quarter alone, consumers have purchased more than 4 million DVD players, a 24% increase over the 1st quarter of 2002, bringing the total number of DVD players to over 60 million.
The growth of DVDs over the past 2 years has been remarkable to say the least. In 2002, consumers spent over $20 billion buying and renting DVDs compared to just over $9 billion spent at the box offices. That figure represents 57% of home video consumer spending for 2002. Breaking the numbers down further, DVD rentals and sales surged to $11.6 billion, a 71% increase in 2002. In fact, over 685 million DVD units shipped in 2002, while a total of 675 million were shipped in the previous five years. In the 1st quarter of 2003, over 230 million units were sent to retail, a 93% increase.
So why the tremendous interest in DVD? Consumers appreciate the higher quality of both picture and sound that DVD produces versus VHS, and comparable prices for purchasing and renting both players and titles. DVDs also offer immediate scene access, relieving the need to fast forward or rewind, and often offer special features such as behind-the-scene commentary, as well as the ability to control camera angles. Unlike VHS, consumers may also have portable DVD players or play videos on computers from any location.
The popularity of DVDs can be seen just by a visit to your local Blockbuster Video (NYSE: BBI) or Best Buy (NYSE: BBY). A year ago, VHS tapes accounted for the majority of shelf space, now DVDs dominate the shelf space, especially for newly released titles. And the DVD craze is not only for movies. The industry is seeing record growth in the sales of music videos, fitness, television episodes, as well as documentary and special interests. In a news release on the DVD Entertainment Group website, Bob Chapek, president, Buena Vista Home Entertainment and president, DVD Entertainment Group, states, “Consumers are purchasing unprecedented numbers of DVDs. This, in combination with a dramatically increasing base of DVD households, ensures future record-smashing performance of the format over the next several years.”