ONE-BILLIONTH DVD TO SHIP THIS MONTH

More Than 270 Million DVDs Shipped in First Half 2002,
Up 80 Percent Over Same Period Last Year

Nearly 50 Percent of U.S. Homes to Have DVD Capability by Year-end*



     LAS VEGAS (July 17, 2002) - As DVD celebrates its fifth year in the marketplace, the one-billionth DVD software unit is anticipated to ship to retail this month according to an announcement made by the DVD Entertainment Group (DEG) today at the Video Software Dealers Association conference (VSDA) in Las Vegas. This milestone heralds DVD as the most successful format launch in history for the industry, with prerecorded videocassettes taking nearly 10 years to reach this benchmark (Adams Media Research).

     According to figures compiled by Ernst & Young on behalf of the DEG, more than 272 million DVD movies and music videos shipped in the first six months of 2002, an 80 percent increase over the same period last year.

     Since the inception of the format in 1997, software shipments in North America have reached more than 947 million units, according to the DVD Entertainment Group.

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

QUARTER
2002
2001
2000
1999
1998
1997
1st Quarter
120.1
69.2
29.0
11.1
3.3
N/A
2nd Quarter
152.2
81.7
33.2
13.9
4.1
N/A
3rd Quarter
N/A
75.9
42.7
29.0
5.9
2.3
4th Quarter
N/A
137.6
77.5
44.0
11.8
3.2
YEARLY TOTAL
272.3
364.4
182.4
98.0
25.1
5.5
TOTAL SHIPMENTS
(since launch)
947.7
(a/o 6/30/02)
 
 
 
 
 

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

     "This is a format that has truly re-invigorated our industry on both the hardware and software ends of the business and is changing the way Hollywood makes movies and the way people watch them at home," said Bob Chapek, president, DVD Entertainment Group and president, Buena Vista Home Entertainment.

     Recent growth areas for DVD-Video include family programs, concerts and music videos, and TV programming, all embracing DVD's superior quality, interactivity and added-value features. More than 16,000 titles are currently available with more than 100 new DVDs released each week. In response to growing consumer excitement and the expanding variety of titles, retailers continue to add more shelf space for DVD product.

Hardware Continues Record Growth

      In the first half of 2002, 8.1 million DVD players shipped to retail, a 53 percent increase over the same period last year, according to the DVD Entertainment Group (DEG), bringing the total players shipped since the format's launch to 40 million. The DEG estimates that 20 million DVD players will ship to retail this year alone.


DVD HARDWARE SHIPMENTS BY QUARTER*

QUARTER
2002
2001
2000
1999
1998
1997
1st Quarter
3,500,000
2,800,000
1,400,000
400,000
100,000
N/A
(launch)
2nd Quarter
4,6000,000
2,500,000
1,700,000
900,000
170,000
90,000
3rd Quarter
N/A
4,100,000
2,700,000
1,100,000
280,000
90,000
4th Quarter
N/A
7,300,000
3,900,000
1,700,000
530,000
140,000
YEARLY
TOTAL
8,100,000
16,700,000
9,700,000
4,100,000
1,080,000
320,000
TOTAL
(since launch)
40,000,000
(a/o 6/30/02)
 
 
 
 
 

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

 

     Additionally, according to figures compiled by the DEG based on retail and manufacturer data, DVD players sold through to U.S. consumers have reached nearly 39 million, with the format currently in nearly 30 million households (adjusting for homes owning two or more DVD players).

     "If growth continues at the current rate, DVD will be in more than 40 million households by the end of 2002," Reid Sullivan, DEG board member and Panasonic Consumer Electronics Co. vice president, entertainment group. "When you also include the growing number of PCs with DVD-ROM drives and game consoles with DVD capability, nearly 50 percent of U.S. homes will have the format by year-end."

     There are now more than 250 DVD player models marketed under 60 different consumer electronics brands. DVD players are available at most consumer electronics retailers and have become the focal point of the home theater category. There are also an expanding variety of DVD players available, with Home Theater in a Box systems, car players, DVD-Video/Audio combination players, portables, recordable units and TV/DVD combination systems all growing in popularity.

     The DVD Entertainment Group is a Los Angeles-based, industry-funded nonprofit corporation that exists expressly to promote consumer awareness of the benefits of DVD-Video and DVD-Audio, and to provide updated information to the media and the retail trade about DVD players and titles.

     Regular members of the DVD Entertainment Group are 5.1 Entertainment Group, Artisan Home Entertainment, BMG Entertainment, Buena Vista Home Entertainment, Columbia TriStar Home Entertainment, DreamWorks Home Entertainment, DTS Entertainment, EMI Recorded Music, Funai Corporation, HBO Home 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, Sony Wonder, Thomson Multimedia, Toshiba America Consumer Products, Twentieth Century Fox Home Entertainment, Universal Music Group, Universal Studios Home Video, USA Home Entertainment, Warner Home Video and Warner Music Group.

     Associate members are Alta Resources, Blink Digital, Cinram, Clear-Vu Products, Crest National, Deluxe Digital Services, Digital Video Compression Corporation, InterActual Technologies, Media Copy, Panasonic Disc Services, PlanetWeb, Sonopress, Sony Disc Manufacturing, Sony Pictures Digital Authoring Center 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.

  * Includes set-top and portable DVD players, Home Theater in Box systems, TV/DVD and DVD/VCR combination players,
TV/DVD and DVD/VCR combination players, DVD-Rom drives and DVD-capable game consoles