DVD HOUSEHOLD PENETRATION REACHES 75 MILLION

Software Shipments for First Half 2005 Up Nearly 20 Percent Fueled by Variety of Entertainment Genres and Expanded Distribution Channels


      LOS ANGELES ( July 26, 2005) – DEG: The Digital Entertainment Group released its second quarter hardware and software DVD sales results which underscored the popularity of DVD among U.S. consumers. According to figures compiled by DEG: the Digital Entertainment Group (DEG) based on data from the Consumer Electronics Association (CEA), retailers and manufacturers, nearly 14 million DVD players were sold to consumers in the U.S. in the first half of 2005, more than a six percent increase over the same period last year.

      Since launch, more than 140 million DVD players, including set-top and portable DVD players, DVD recorders, Home-Theater-in-a-Box systems (HTIB), TV/DVD and DVD/VCR combination players, have sold to consumers, bringing the number of DVD households to 75 million (adjusting for households with more than one player).

      Approximately 47 percent of DVD owners have more than one player, reflecting the growing popularity of HTIB systems and other lifestyle products. Portable DVD player sales are projected to grow 57 percent versus last year, according to the Consumer Electronics Association (CEA). DVD recorders also continue to show strong growth, with shipments more than doubling in the first half 2005 versus the same period in 2004 (CEA). In addition, car DVD systems are on the rise, with 22 new vehicle models now offering DVD players as standard features.

U.S. DVD HARDWARE SALES BY QUARTER (in millions)

QUARTER
1997
1998
1999
2000
2001
2002
2003
2004
2005
1st Quarter
.030
.094
.358
1.350
2.220
3.565
4.858
6.855
7.741
2nd Quarter
.079
.149
.611
1.435
2.404
3.750
5.506
6.057
6.006
3rd Quarter
.077
.244
.880
1.550
2.537
4.740
6.470
6.593
N/A
4th Quarter
.119
.459
1.701
5.542
9.501
13.058
16.900
17.621
N/A
YEARLY
TOTAL
.305
.946
3.550
9.877
16.662
25.113
33.734
37.125
13.747
TOTAL
(since launch)
 
 
 
 
 
 
 
  141.060

*Includes set-top and portable DVD players, Home Theater in Box systems, TV/DVD and DVD/VCR combination players
DEG: Digital Entertainment Group


      “DVD is increasingly impacting all aspects of consumers’ lifestyles, transcending beyond the living room into every room of the home, as well as into cars and a variety of portable devices for use on the go,” said Mike Fidler, vice president, DEG and senior vice president, home products, Sony Electronics.

      In the first half 2005, more than 770 million DVDs shipped to retail according to figures compiled by Kaplan, Swicker and Simha on behalf of the DEG. This represents a 19 percent increase over the same period last year, bringing the total number of units shipped since the launch of the DVD format to nearly 4.7 billion discs. There are now approximately 47,000 DVD titles available to consumers.

      “As the focal point of home entertainment, DVD was initially driven by film enthusiasts who built large libraries,” Peter Staddon, vice president, DEG and executive vice president, marketing, Twentieth Century Fox Home Entertainment. “However, today, the industry is also experiencing solid growth from a number of other genres, including TV on DVD, Music on DVD, family fare and special interest, as evidenced by the impressive array of titles available from expanded distribution channels.”


NORTH AMERICAN DVD-VIDEO SOFTWARE SHIPMENTS BY QUARTER (in millions)

QUARTER
1997
1998
1999
2000
2001
2002
2003
2004
2005
1st Quarter
N/A
3.3
11.1
29.0
69.2
120.1
231.7
332.2
403.0
2nd Quarter
N/A
4.1
13.9
33.2
81.7
152.2
195.5
316.8
369.1
3rd Quarter
2.3
5.9
29.0
42.7
75.9
153.3
214.6
340.9
N/A
4th Quarter
3.2
11.8
44.0
77.5
137.6
259.4
381.5
528.4
N/A
YEARLY TOTAL
5.5
25.1
98.0
182.4
364.4
685.0
1,023.3
1,518.3
772.1
TOTAL SHIPMENTS
(since launch)
 
30.6 
 128.6 
 311.0
675.4 
1,360.4 
2,383.7
3,902.0
4,674.1

Figures compiled by Kaplan, Swicker & Simha on behalf of DEG: The Digital Entertainment Group


    DEG: The Digital Entertainment Group is a Los Angeles-based, industry-funded nonprofit corporation that advocates and promotes the many benefits associated with DVD while providing updated information regarding the format to both the media and the retail trade. The DEG offers a forum for member companies to engage in ongoing discussions concerning various issues and opportunities, which relate to other new digital technologies that may emerge in the future.

     Regular members of the DEG are Anchor Bay Entertainment, Buena Vista Home Entertainment, DreamWorks Home Entertainment, D&M Holdings, DTS Entertainment, EMI Recorded Music, Hewlett-Packard, Hitachi, Image Entertainment, JVC Company of America, Lions Gate Entertainment, MGM Home Entertainment, New Line Home Entertainment, Panasonic Consumer Electronics, Paramount Home Entertainment, Philips Consumer Electronics, Pioneer Electronics (USA), Sony Electronics, Sony BMG Music Entertainment, S ony 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, Blink Digital, Broadcast Text, Clear-Vu, Deluxe Media Services, 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.


# # #