DVD Was 71 Percent of 2003's $22.5 Billion Home Video Business, DEG Says8 Jan, 2004 By: Kurt Indvik
DVD played the lead role in driving consumers to spend $22.5 billion renting and buying home videos in 2003, a growth of more than 18 percent from 2002, according to the Digital Entertainment Group (DEG), which released its findings today during the International Consumer Electronics Show in Las Vegas.
Consumers spent $11.6 billion buying DVDs and another $4.5 billion renting discs, for a total of $16.1 billion, or more than 71 percent of the total home video market last year.
“With sales of both [DVD] hardware and software reaching new record levels, the DVD format has emerged as the dominant format in the home entertainment industry,” said Bob Chapek, president of both the DEG and Buena Vista Home Entertainment.
While Buena Vista Home Entertainment's Finding Nemo was the top-selling DVD in 2003, with 19.54 million units sold through by year's end, DEG also listed 28 titles that sold in excess of 5 million DVDs during the course of 2003, according to figures provided by Video Store Magazine market research.
The DEG ranked Universal Studios Home Video's The Bourne Identity as the top DVD renter in 2003, according to figures from Rentrak.
Suppliers shipped a little more than 1 billion DVDs into the market in 2003, leaping more than 49 percent over the 685 million units shipped in 2002. More than 381 million DVDs were shipped to retail in the fourth quarter alone, according to DEG's figures, which were compiled for the group by the firm Kaplan, Swicker & Simha. About 2.4 billion DVDs have been shipped since the format's introduction in 1997.
The DEG at last year's CES had predicted big things music DVD for 2003, and today cited Nielsen SoundScan numbers that showed that sales of music on DVD jumped 102 percent in 2003 to more than 17 million units. There are more than 4,000 music DVD titles.
On the hardware front, the DEG estimates — based on figures it compiled from the Consumer Electronics Association, retailers and manufacturers — that nearly 34 million DVD players were sold in the United States last year, an increase of 34 percent from 2002, with nearly 17 million DVD players sold during the fourth quarter alone. The group estimates that more than 90 million DVD players have been sold since launch (including game consoles and computer drives), and that nearly 57 million U.S. households have at least one DVD player. The group estimates that an additional 30 million players will be sold in 2004, bringing U.S. household penetration to 65 percent.