CONSUMER SPENDING REACHES $24.3 BILLION
FOR YEARLY HOME VIDEO SALES

DVD Players in More Than 82 Million U.S. Homes
     

      LAS VEGAS ( Jan. 5, 2006) – Consumers spent $22.8 billion renting and buying DVDs in 2005, announced today by DEG: The Digital Entertainment Group at the International Consumer Electronics Show (CES). Consumer spending for DVDs was up approximately eight percent.

      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 CONSUMER SPENDING ON DVD
TOTAL CONSUMER SPENDING ON HOME 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: 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
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
 347.9
4th Quarter
3.2
11.8
44.0
77.5
137.6
259.4
381.5
 528.4 
536.7 
YEARLY TOTAL
5.5
25.1
98.0
182.4
364.4
685.0
1023.3
 1,518.3
 1,656.9
TOTAL SHIPMENTS
(since launch)
 
30.6 
 128.6 
 311.0
675.4 
1,360.4 
2,383.7
 3,902.0
5,558.9
Figures compiled by Kaplan, Swicker & Simha on behalf of the DEG: 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
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
6.250
4th Quarter
.119
.459
1.701
5.542
9.501
13.058
16.9
 17.621
16.740
YEARLY
TOTAL
.305
.946
3.550
9.877
16.662
25.113
33.734
 37.125
36.737
TOTAL
(since launch)
 
 
 
 
 
 
 
  
164.049
*Includes set-top and portable DVD players, Home Theater in Box systems, TV/DVD and DVD/VCR combination players
DEG: 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 a 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, 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, 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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