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VSDA Annual Report: DVD Hardware and Software Spending Surged 123% in 2000

24 Jul, 2001 By: Hive News

The Video Software Dealers Association (VSDA) in its annual report cited the meteoric rise of consumer acceptance of DVD as a sign that consumers will continue to find great value in movies as packaged goods in years ahead.

In its newly released "2001 Annual Report on the Home Entertainment Industry," the VSDA found that American consumers continued to spend more of their entertainment dollars renting and purchasing DVDs in 2000, despite persistent news about over-the-horizon alternative delivery methods of viewing movies in the home.

The total revenues of rental and sales spending on video and DVD titles in 2000 was over $19 billion, a 10% increase over 1999. Hardware shipments for both VCRs and DVDs reached all-time highs, and total DVD revenues, hardware and software combined, jumped 123% by the end of 2000 over 1999.

The new report contains comprehensive statistics and analysis on a wide spectrum of topics related to home entertainment, including the rental and sales markets, consumer and retailer information, the video game market, digital cinema and theatrical exhibition, and the relationship between VHS and DVD.

The report also contains a detailed look at the future of home entertainment, with emphasis on emerging technologies such as video-on-demand, pay-per-view, Smart TV, downloading and streaming, and the online community.

"The substantial increase in DVD revenues in 2000 demonstrates the delight and the new discoveries consumers continue to find in this format," said VSDA president Bo Andersen in a statement. "Compared to other movie delivery systems available, consumers continue to rank home video high in value, convenience and comfort while enjoying the widest selection of filmed entertainment available anywhere."

Some highlights in the report include:

-- VCR penetration reached 93 million households in 2000, driven by an all-time high in VCR shipments to dealers in 2000.

-- Total rental spending increased 2% in 2000, driven by a 136% jump in the DVD format.

-- DVD penetration reached 14.5 million households by the end of 2000, and the number of total titles available on DVD topped 8,500.

-- Rental spending on video games reached an all-time high of $919 million, while sales of video game titles remained steady at just over $4 billion.

-- Domestic box office admissions declined 3%, while revenues increased 3% due to inflated ticket prices.

-- Blockbuster Video and Wal-Mart remained the most powerful video generators in the marketplace, gathering over $5 billion between them on video revenue alone.

-- The Sixth Sense (Buena Vista Home Entertainment/Disney)accumulated more than $130 million in rental revenue in 2000.

-- Over 125 million Americans were online in 2000, a 25% increase over 1999 totals.

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