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EMA Report Says Big-box Retailers and DVD Still Rule

16 Jul, 2007 By: Thomas K. Arnold

DVD still outshines other forms of consumer spending on home entertainment.

The Entertainment Merchants Association's annual report on the home entertainment industry finds that mass merchants like Wal-Mart and Target continue to dominate the DVD sales market with a 43% market share, followed by consumer electronics retailers at 16% and online retailers at 12.5%. In the rental market, publicly traded video chains like Blockbuster control 43% of the business, other video stores have 39% and online rental services have 16%.

The report, released on the eve of the EMA's Home Media Expo 2007, puts total consumer spending on DVD sales and rentals in calendar 2006 at $23 billion, slightly lower than the conventionally accepted number of $24.2 billion released last January by DEG: The Digital Entertainment Group. But even the EMA's lowball estimate outshines the amount of money consumers spent on movie tickets ($9.5 billion) and movies-on-demand delivered by cable, satellite or the Internet ($982 million).

“While consumers are viewing filmed entertainment through an increasing variety of devices and services, they remain loyal to DVD,” said EMA President Bo Andersen. “DVD will continue to be the most popular way for the public to view movies for the foreseeable future, and we expect high-definition discs to become the dominant home video format within five years.”

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