CONSUMER INTEREST IN DVD REMAINS STRONG IN FIRST QUARTER 2005


Both Title And Player Sales Maintain Double Digit Growth
As DVD Reaches 73 Million U.S. Homes



      LOS ANGELES (April 19, 2005) – In the first quarter 2005, more than 400 million DVDs shipped to retail according to figures compiled by Kaplan, Swicker and Simha on behalf of DEG: The Digital Entertainment Group (DEG). This represents a 21 percent increase over the same period last year, bringing the total number of units shipped since the launch of the DVD format to more than 4.3 billion discs. There are now more than 43,000 DVD titles available to consumers across a wide variety of genres.

     "We are pleased to see new DVD owners so enthusiastic about their players and starting a DVD library," said Bob Chapek, president, DEG and president, Buena Vista Home Entertainment. "In fact, such strong player sales in the holiday season have enabled the entertainment industry to essentially create a new 'fifth quarter' to continue the momentum from the fourth quarter and market titles to these new enthusiasts."

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
N/A
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
403.0
TOTAL SHIPMENTS
(since launch)
 
30.6 
 128.6 
 311.0
675.4 
1,360.4 
2,383.7
3902.0
4,305.0

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

 

DVD PLAYERS IN MORE THAN 73 MILLION U.S. HOMES
     According to figures compiled by the DEG based on data from the Consumer Electronics Association (CEA), retailers and manufacturers, more than seven and a half million DVD players were sold to consumers in the U.S. in the first three months of 2005, a 13 percent increase over the same period last year.

     Since launch, more than 135 million DVD players, including set-top and portable DVD players, DVD recorders, Home-Theater-in-a-Box systems, TV/DVD and DVD/VCR combination players, have sold to consumers, bringing the number of DVD households to 73 million (adjusting for households with more than one player). Approximately 46 percent of DVD owners have more than one player.

     The DEG estimates that more than 80 percent of U.S. households will have at least one DVD player by the end of this year.

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
N/A
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
7.741
TOTAL
(since launch)
 
 
 
 
 
 
 
  135.054

*Includes set-top and portable DVD players, Home Theater in Box systems, TV/DVD and DVD/VCR combination players
DEG: 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, 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, Alta Resources, Blink Digital, Broadcast Text, Deluxe Media Services, InterActual Technologies, Macrovision, Memory-Tech, 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.


# # #