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Industry Gets Snapshot With VSDA Annual Report

4 Aug, 2003 By: Kurt Indvik

DVD rental revenue doubled, the supposedly dying VHS format was still kicking as VCRs were added to another 4 million households, and gamers spent $22 million renting video games – all in 2002. Those are just some of the results of the Video Software Dealers Association's “Annual Report on the Home Entertainment Industry for 2002.”

“I am pleased to note that this report shows that home video remains the American consumer's most popular way to view movies and that the industry is healthy and growing,” said VSDA president Bo Andersen in announcing the release of the report.

The report is the VSDA's annual benchmark on the home entertainment business on a variety of fronts, including rental and sales of home video and video games at retail and online.

By the end of 2002, DVD consoles were in 39 million U.S. households, up from 25 million households by the end of 2001, according to the report. VHS, meanwhile, reached 97 million U.S. households by the end of the year. The VSDA report projects that video-on-demand households will reach 11.5 million by 2003 and that broadband penetration is projected to grow to 20.6 million U.S. households by the end of 2003.

According to the VSDA's data, in 2002, DVD generated $2.9 billion in rentals and $8.7 billion in sales. Consumers spent $3.4 billion renting VHS in 2002. The month-to-month VHS vs. DVD balance shifted to DVD's favor earlier this year.

There were no surprises on the retail front, where the VSDA pegged Blockbuster as the No. 1 video rental chain in 2002, while Wal-Mart was tapped as the top chain for video sales.

The report is available from the VSDA for purchase and can be requested at research@vsda.org.

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