DVD retail sales grew five percent to $16.3 billion in 2005, with unit sales up 10 percent. In addition, consumers also spent $6.5 billion renting DVDs, an increase of 14 percent over last year.
When including VHS sales and rental, the dollars spent on home video was relatively flat from last year. Consumers spent $24.3 billion renting and buying DVD and VHS.
U.S. CONSUMER HOME VIDEO SPENDING (in billions)
Year DVD Sales DVD Rental Total Total Consumer
Consumer Spending on Home
Spending Video (DVD & VHS
-- Rental & Sell-
Through)
______________________________________________________________________
1999 $0.7 $0.1 $0.8 $12.8
2000 $1.9 $0.6 $2.5 $14.0
2001 $5.4 $1.4 $6.8 $16.8
2002 $8.7 $2.9 $11.6 $20.3
2003 $11.6 $4.5 $16.1 $22.5
2004 $15.5 $5.7 $21.2 $24.5
2005 $16.3 $6.5 $22.8 $24.3
DEG: The Digital Entertainment Group
In the fourth quarter 2005, 536.7 million DVDs shipped to retail according to figures compiled by Kaplan, Swicker and Simha on behalf of the DEG. More than 1.6 billion software units shipped throughout 2005, a nine percent increase from 2004, bringing the total number of units shipped since launch to 5.6 billion discs.
NORTH AMERICAN DVD-VIDEO SOFTWARE SHIPMENTS BY QUARTER
(in millions)
Quarter 1997 1998 1999 2000 2001
______________________________________________________________________
1st Quarter N/A 3.3 11.1 29.0 69.2
2nd Quarter N/A 4.1 13.9 33.2 81.7
3rd Quarter 2.3 5.9 29.0 42.7 75.9
4th Quarter 3.2 11.8 44.0 77.5 137.6
YEARLY TOTAL 5.5 25.1 98.0 182.4 364.4
TOTAL
(since launch) 30.6 128.6 311.0 675.4
Quarter 2002 2003 2004 2005
______________________________________________________________________
1st Quarter 120.1 231.7 332.2 403.0
2nd Quarter 152.2 195.5 316.8 369.1
3rd Quarter 153.3 214.6 340.9 347.9
4th Quarter 259.4 381.5 528.4 536.7
YEARLY TOTAL 685.0 1,023.3 1,518.3 1,656.9
TOTAL
(since launch) 1,360.4 2,383.7 3,902.0 5,558.9
Figures compiled by Kaplan, Swicker & Simha on behalf of DEG: The
Digital Entertainment Group
DVD U.S. HOUSEHOLDS REACH 82 MILLION
According to figures compiled by the DEG based on data from the Consumer Electronics Association (CEA), retailers and manufacturers, an estimated 37 million DVD players were sold to U.S. consumers in 2005. Nearly 17 million DVD players sold in the fourth quarter alone.
Since launch, more than 164 million DVD players, including set-top and portable DVD players, Home-Theater-in-a-Box systems, TV/DVD and DVD/VCR combination players, have sold to consumers, bringing the number of DVD households to 82 million (adjusting for households with more than one player). Fifty percent of DVD owners now have more than one player.
U.S. DVD HARDWARE SALES BY QUARTER (in millions)
Quarter 1997 1998 1999 2000 2001
______________________________________________________________________
1st Quarter .030 .094 .358 1.350 2.220
2nd Quarter .079 .149 .611 1.435 2.404
3rd Quarter .077 .244 .880 1.550 2.537
4th Quarter .119 .459 1.701 5.542 9.501
YEARLY TOTAL .305 .946 3.550 9.877 16.662
Quarter 2002 2003 2004 2005
______________________________________________________________________
1st Quarter 3.565 4.858 6.855 7.741
2nd Quarter 3.750 5.506 6.057 6.006
3rd Quarter 4.740 6.470 6.593 6.250
4th Quarter 13.058 16.900 17.621 16.740
YEARLY TOTAL 25.113 33.734 37.125 36.737
TOTAL
(since launch) 164.049
Includes set-top and portable DVD players, Home-Theater-in-a-Box
systems, TV/DVD and DVD/VCR combination players
DEG: The Digital Entertainment Group
When accounting for computers with DVD capability and DVD-enabled video game consoles, an estimated 89 million households currently have the capability to play DVD (more than 80 percent of U.S. TV households), according to ICR CENTRIS. Of these, less than 20 million (17 percent) rely solely on the standard set-top box in the living room for watching DVDs. More than 80 percent of DVD-capable households have either multiple players or alternative DVD devices, such as portable players, DVD-enabled video game consoles or DVD-capable computers (ICR CENTRIS).
DEG: The Digital Entertainment Group serves to advocate and promote the many benefits associated with DVD while providing updated information regarding the format to both the media and the retail trade. As an industry-funded, nonprofit organization, the DEG also offers a forum for member companies to engage in ongoing discussions and provide external communications concerning various issues and opportunities which relate to new digital technologies that may emerge in the future.
DEG Regular members are Anchor Bay Entertainment, Buena Vista Home Entertainment, DreamWorks Home Entertainment, D&M Holdings, DTS, EMI Music, HBO Video, Hewlett Packard, Hitachi, Image Entertainment, JVC Company of America, Lionsgate, MGM Home Entertainment, Microsoft, New Line Home Entertainment, Panasonic Consumer Electronics, Paramount Home Entertainment, Philips Electronics, Pioneer Electronics (USA), Sony BMG Music Entertainment, Sony Electronics, Sony Pictures Home Entertainment, Thomson, Toshiba America Consumer Products, Twentieth Century Fox Home Entertainment, Universal Music Group, Universal Studios Home Entertainment and Warner Home Video.
Associate members are AGI Media, Ascent Media/Blink Digital, Clear-Vu, Deluxe Media Services, Giant Interactive, JVC Disc America, Macrovision, Memory-Tech, Panasonic Hollywood Laboratory, Sonic Solutions, Sonopress, Sony DADC, Technicolor and Universal Operations Group.
Interested consumers can reach the DEG at 310-888-2201, via e-mail at getinfo@digitalentertainmentinfo.com or through its web site at www.digitalentertainmentinfo.com.
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