INDUSTRY BOOSTED BY $21.2 BILLION IN ANNUAL DVD SALES AND RENTALS

DVD Players in More Than 70 Million U.S. Homes
     

     LAS VEGAS ( Jan. 6, 2005) – Consumers spent a record $21.2 billion renting and buying DVDs in 2004, announced today by DEG: The Digital Entertainment Group at the International Consumer Electronics Show.

     DVD retail sales grew to $15.5 billion in 2004, an increase of 33 percent over last year. In addition, consumers also spent $5.7 billion renting DVDs.

     When including VHS sales and rental, the dollars spent on home video was up nine percent over last year. Consumers spent $24.5 billion renting and buying DVD and VHS.

     In the fourth quarter 2004 alone, nearly 530 million DVDs shipped to retail according to figures compiled by Kaplan, Swicker and Simha on behalf of the DEG. This is a 39 percent increase over the same period last year. More than 1.5 billion software units shipped throughout 2004, bringing the total number of units shipped since launch to nearly four billion discs. There are nearly 40,000 DVD titles available across a wide variety of genres.

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

QUARTER
1997
1998
1999
2000
2001
2002
2003
2004
1st Quarter
N/A
3.3
11.1
29.0
69.2
120.1
231.7
332.2
2nd Quarter
N/A
4.1
13.9
33.2
81.7
152.2
195.5
316.8
3rd Quarter
2.3
5.9
29.0
42.7
75.9
153.3
214.6
 340.9
4th Quarter
3.2
11.8
44.0
77.5
137.6
259.4
381.5
528.4 
YEARLY TOTAL
5.5
25.1
98.0
182.4
364.4
685.0
1023.3
 1,518.3
TOTAL SHIPMENTS
(since launch)
 
30.6 
 128.6 
 311.0
675.4 
1,360.4 
2,383.7
3,902.0
(a/o 12/31/04)
Figures compiled by Kaplan, Swicker & Simha on behalf of the DEG: Digital Entertainment Group


DVD IN MORE THAN 70 MILLION U.S. HOMES
     According to figures compiled by the DEG based on data from the Consumer Electronics Association (CEA), retailers and manufacturers, 37 million DVD players were sold to U.S. consumers in 2004, a 10 percent increase over the previous year. More than 17 million DVD players sold in the fourth quarter alone.

     Since launch, more than 127 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 70 million (adjusting for households with more than one player). Approximately 45 percent of DVD owners now 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 year-end 2005.


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

QUARTER
1997
1998
1999
2000
2001
2002
2003
2004
1st Quarter
.030
.094
.358
1.350
2.220
3.565
4.858
6.855
2nd Quarter
.079
.149
.611
1.435
2.404
3.750
5.506
6.057
3rd Quarter
.077
.244
.880
1.550
2.537
4.740
6.470
6.593
4th Quarter
.119
.459
1.701
5.542
9.501
13.058
16.9
17.621
YEARLY
TOTAL
.305
.946
3.550
9.877
16.662
25.113
33.734
37.125
TOTAL
(since launch)
 
 
 
 
 
 

127.313
(a/o 12/31/04)
*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-ROM drives and DVD-enabled video game consoles, an estimated 79 million households currently have the capability to play DVD, approaching three-fourths of all U.S. TV households (CENTRIS).

     DEG: the Digital Entertainment Group (formerly the DVD 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, GoodTimes Entertainment, 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 Alta Resources, Blink Digital, Broadcast Text, Deluxe Media Services, InterActual Technologies, Macrovision, 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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