DVD SOFTWARE ACHIEVES RECORD SHIPMENTS
IN FIRST QUARTER 2003

More than 43 Million U.S. Households Own a DVD Player


     LOS ANGELES (April 28, 2003) - The home entertainment industry enjoyed another record quarter shipping 231.7 million DVD titles to retail in the first three months of 2003, a 93 percent increase over shipments in the first quarter of last year. According to figures compiled by Ernst & Young on behalf of the DVD Entertainment Group, the total number of units shipped in North America has reached nearly 1.6 billion since launch.

DVD-VIDEO SOFTWARE SHIPMENTS BY QUARTER (in millions)

QUARTER
1997
1998
1999
2000
2001
2002
2003
1st Quarter
N/A
3.3
11.1
29.0
69.2
120.1
231.7
2nd Quarter
N/A
4.1
13.9
33.2
81.7
152.2
---
3rd Quarter
2.3
5.9
29.0
42.7
75.9
153.3
---
4th Quarter
3.2
11.8
44.0
77.5
137.6
259.4
---
YEARLY TOTAL
5.5
25.1
98.0
182.4
364.4
685.0
231.7
TOTAL SHIPMENTS
(since launch)
 
30.6 
 128.6 
 311.0
675.4 
1,360.4 
1,592.1
(a/o 3/31/03)

Figures compiled by Ernst & Young on behalf of the DVD Entertainment Group

 

     "Consumers are purchasing unprecedented numbers of DVDs," said Bob Chapek, president, Buena Vista Home Entertainment and president, DVD Entertainment Group. "This, in combination with a dramatically increasing base of DVD households, ensures future record-smashing performance of the format over the next several years."

     In addition to movies, consumer enthusiasm for the DVD format has translated into explosive growth in the variety of new titles available. Sales of episodic television on DVD have experienced nearly 123 percent growth over the first quarter last year according to Nielsen VideoScan. In addition, music, fitness, documentary and special interest DVD sales have more than doubled in the first quarter compared to the same period last year, demonstrating the format's growth beyond theatrical blockbusters and family programming. There are nearly 23,000 DVD titles currently available from all genres.

More Than 60 Million DVD Players Sold in the U.S.
     According to figures compiled by the DVD Entertainment Group based on data from the Consumer Electronics Association (CEA), retailers and manufacturers, more than 4.4 million DVD players were sold to consumers in the first three months of 2003, a 24 percent increase over the same period last year. Nearly 60.9 million DVD players have sold since launch, bringing the number of DVD households to more than 43 million (adjusting for households with more than one player).

     "DVD players continue to electrify the consumer electronics space," said Jerry Barbera, vice president, JVC America and co-chair, DEG Music on DVD committee. "With a variety of innovations, such as portables, car players, DVD recorders and VCR/TV combination products, the latest models offer the end-user an expanded array of choices. These advancements are why DVD players continue to be the centerpiece of the digital entertainment experience and the catalyst for the home theater purchase."

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

QUARTER
1997
1998
1999
2000
2001
2002
2003
1st Quarter
.030
.094
.358
1.350
2.220
3.565
4.424
2nd Quarter
.079
.149
.611
1.435
2.404
3.750
---
3rd Quarter
.077
.244
.880
1.550
2.537
4.740
---
4th Quarter
.119
.459
1.701
5.542
9.501
13.058
---
YEARLY
TOTAL
.305
.946
3.550
9.877
16.662
25.113
4.424
TOTAL
(since launch)
 
 
 
 
 
 
60.877
(a/o 3/31/03)

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

     There are now more than 250 DVD player models marketed under 60 different consumer electronics brands.

     The DVD Entertainment Group is a Los Angeles-based, industry-funded nonprofit corporation that advocates and promotes the benefits of DVD-Video and DVD-Audio, and provides updated information to the media and the retail trade about DVD players and titles. The DEG also provides a platform where home entertainment companies come together to analyze, evaluate and discuss current, emerging and future technologies and formats for the home entertainment market.

     Regular members of the DVD Entertainment Group are 5.1 Entertainment Group, Artisan Home Entertainment, Buena Vista Home Entertainment, Columbia TriStar Home Entertainment, DreamWorks Home Entertainment, DTS Entertainment, EMI Recorded Music, Funai Corporation, HBO Video, Image Entertainment, JVC Company of America, MGM Home Entertainment, New Line Home Entertainment, Panasonic Consumer Electronics, Paramount Home Entertainment, Philips Consumer Electronics, Pioneer Electronics (USA), Sony Electronics, Sony Music Entertainment, Thomson, Toshiba America Consumer Products, Twentieth Century Fox Home Entertainment, Universal Music Group, Universal Studios Home Video, Warner Home Video and Warner Music Group.

     Associate members are Alta Resources, Blink Digital, Clear-Vu Products, Crest National, Deluxe Media Services, Digital Video Compression Corporation, InterActual Technologies, Macrovision, Media Copy, Metropolis DVD, MX Entertainment, Sonopress, Sony Disc Manufacturing and Technicolor.

     Interested consumers can reach the DVD Entertainment Group at (310) 967-2953, via e-mail at getinfo@dvdinformation.com or through its web site at www.dvdinformation.com.