VSDA Tallies $18.7B in 2001 Video Spending23 Jul, 2002 By: Joan Villa
The home video industry tallied a record-breaking 2001 with $18.7 billion in total U.S. spending as DVD sellthrough sales outpaced VHS for the first time, according to a new annual report issued by the Video Software Dealers Association. Consumers are choosing DVD for purchase but renting the new format far less than VHS, the report shows.
Rental numbers totaled $8.4 billion in 2001, with $7 billion devoted to VHS and only $1.4 billion for DVD.
By genre, DVD rental consumers chose comedy (29.4 percent share), followed by drama (19.9 percent), action (17.8 percent) and suspense (11.9 percent), VSDA/VidTrac numbers show.
Sellthrough outpaced rental in the VSDA's data, as consumers spent $5.4 billion purchasing DVD and $4.9 billion on VHS for a total of $10.3 billion.
However, while the DVD format had the bigger market share in terms of total spending, consumers purchased more VHS units: 354 million VHS units vs. 249 million DVDs, according to VideoScan.
DVD hardware penetration rose to 25 percent of all U.S. television households and is expected to grow another 10 points, to 35 percent, by year-end.