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DVD Software Sales, Shipments on the Rise in Key Intl. Markets

7 Aug, 2003 By: Jessica Wolf

DVD sellthrough software product is steadily staking its claim in primary territories outside the United States, according to a report from research firm Understanding & Solutions.

DVD sellthrough is projected to make up 452 million units of the 673 million total home video software shipments in Western Europe in 2003, and will continue to dominate the market as total VHS and DVD units shipped grows to 855 million by 2006, according to the report.

In Japan, DVD sellthrough is projected at 65 million units of the country's 105 million annual shipments for 2003. The Japanese market should see 139 million total home video units shipped by 2006, with DVD sellthrough almost doubling to 120 million units.

At the end of 2002 in Western Europe feature films made up 76 percent of DVD sales, the report revealed. By 2006, however, according to the study, the feature film portion of DVD sales will shrink to 63 percent, music genre sales should grow to 8 percent, TV titles will grow to 6 percent, children's nontheatrical titles will increase to 5 percent, and children's theatrical titles will grow to 12 percent.

At the end of 2002, music titles made up 14 percent of DVD sales in Japan, while children's nontheatrical titles accounted for only 5 percent; special-interest and children's nontheatrical were both 3 percent; and TV DVD made up 4 percent of sales in the country. Feature films made up 71 percent of DVD sales at the end of 2002 in Japan.

Most key markets have seen a steady decline in DVD pricing during the last few years, though in France the average retail price of a DVD has gone up from roughly $21 in 2001 to $25 this year, according to the report. The United States has the lowest average DVD price at about $17. Japan has the highest average price at nearly $35. Average prices for the United Kingdom and Germany hover in the $22-$24 price range. Prices should drop for all territories in the next three years, the report predicts.

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