Previously Viewed DVD Market Poised to Grow29 Jul, 2004 By: Melinda Saccone
There is good news for rentailers in the previously viewed title (PVT) sales market: As multiple players become more common in households, PVT sales are poised to grow.
While sales of PVT discs have become a substantial revenue stream in many outlets, the projected $2 billion generated in annual PVT sales in 2004 will continue to grow as more and more consumers find value and convenience in purchasing previously viewed discs.
In the 2004 Consumer Home Entertainment Study conducted by Video Store Magazine, findings suggest that when the household owns more than one DVD playback device, the propensity to purchase PVT discs increases.
According to the study, nearly one-third of all consumers who had purchased a DVD in the past year had also bought a previously viewed disc, with the average PVT consumer purchasing 9.9 PVT discs in the past year.
DVD consumers most likely to have purchased a PVT disc in the past year were multiple DVD player households, high-volume buyers and high-frequency renters.
Nearly 40 percent of multiplayer households had purchased a PVT disc in the past year, compared with 28 percent of single-player households.
Households with more than one DVD player bought more than twice as many PVT discs than single-player households, averaging 14.4 PVT disc buys in the past year, compared with 5.5 in single-player households.
Consumers who had owned their DVD players for at least one year bought more than twice as many PVT discs than consumers who had owned their player for less than a year. DVD households who had owned a player for more than one year bought an average of 11.3 PVT discs, compared to 5.2 PVT discs for new hardware owners.
The most active PVT consumers were also high-volume DVD buyers (consumers who had purchased 20 or more discs in the past year). This group was twice as likely to purchase a PVT disc than low-volume buyers (consumers who had purchased less than five DVDs in the past year).
The average high-volume buyer bought 59.3 discs in the past year, with 20.6 of the discs being previously viewed.
High-frequency DVD renters, (households that rent at least once a week) were the most likely renters to have purchased a PVT disc in the past year (45 percent). While high-frequency renters were more likely to purchase a PVT disc, there was very little difference between the total number of discs purchased among rental segments, with the average number of annual PVT purchases hovering around 10 discs per rental household.