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Consumer Spending Reaches $24.3 Billion for Yearly Home Video Sales; DVD Players in More Than 82 Million U.S. Homes.


LAS VEGAS -- Consumers spent $22.8 billion renting and buying DVDs in 2005 it was 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 DVD: see digital versatile disc.
DVD
 in full digital video disc or digital versatile disc

Type of optical disc. The DVD represents the second generation of compact-disc (CD) technology.
 retail sales grew five percent to $16.3 billion in 2005, with unit sales unit sales

Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company.
 up 10 percent. In addition, consumers also spent $6.5 billion renting DVDs, an increase of 14 percent over last year.

When including VHS (Video Home System) A half-inch, analog videocassette recorder (VCR) format introduced by JVC in 1976 to compete with Sony's Betamax, introduced a year earlier.  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       Total Consumer
                                       Consumer    Spending on Home
                                       Spending    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: The 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
______________________________________________________________________

1st Quarter       N/A         3.3        11.1        29.0        69.2

2nd Quarter       N/A         4.1        13.9        33.2        81.7

3rd Quarter       2.3         5.9        29.0        42.7        75.9

4th Quarter       3.2        11.8        44.0        77.5       137.6

YEARLY TOTAL      5.5        25.1        98.0       182.4       364.4

TOTAL
(since launch)               30.6       128.6       311.0       675.4


Quarter                      2002        2003        2004        2005
______________________________________________________________________

1st Quarter                 120.1       231.7       332.2       403.0

2nd Quarter                 152.2       195.5       316.8       369.1

3rd Quarter                 153.3       214.6       340.9       347.9

4th Quarter                 259.4       381.5       528.4       536.7

YEARLY TOTAL                685.0     1,023.3     1,518.3     1,656.9

TOTAL
(since launch)            1,360.4     2,383.7     3,902.0     5,558.9

     Figures compiled by Kaplan, Swicker & Simha on behalf of DEG: The
                                           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 CEA carcinoembryonic antigen.

CEA
abbr.
carcinoembryonic antigen


CEA (Carcinoembryonic antigen) 
), 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
______________________________________________________________________

1st Quarter      .030        .094        .358       1.350       2.220

2nd Quarter      .079        .149        .611       1.435       2.404

3rd Quarter      .077        .244        .880       1.550       2.537

4th Quarter      .119        .459       1.701       5.542       9.501

YEARLY TOTAL     .305        .946       3.550       9.877      16.662


Quarter                      2002        2003        2004        2005
______________________________________________________________________

1st Quarter                 3.565       4.858       6.855       7.741

2nd Quarter                 3.750       5.506       6.057       6.006

3rd Quarter                 4.740       6.470       6.593       6.250

4th Quarter                13.058      16.900      17.621      16.740

YEARLY TOTAL               25.113      33.734      37.125      36.737

TOTAL
(since launch)                                                164.049

      Includes set-top and portable DVD players, Home-Theater-in-a-Box
                       systems, TV/DVD and DVD/VCR combination players
                                  DEG: The Digital Entertainment Group


When accounting for computers with DVD capability and DVD-enabled video game consoles This is a list of video game consoles by the era they appeared in. Eras are named based on the dominant console type of the era (even though not all consoles of those eras are of the same type). Some eras are referred to based on how many bits a major console could process. , an estimated 89 million households currently have the capability to play DVD (more than 80 percent of U.S. TV households), according to ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize.  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 as 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 Nonprofit Organization

An association that is given tax-free status. Donations to a non-profit organization are often tax deductible as well.

Notes:
Examples of non-profit organizations are charities, hospitals and schools.
, 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 (1) (Digital Theatre Sound) A digital audio encoding system used in movie and home theaters. Popularized by the movie Jurassic Park, the six-channel (5. , EMI (ElectroMagnetic Interference) An electrical disturbance in a system due to natural phenomena, low-frequency waves from electromechanical devices or high-frequency waves (RFI) from chips and other electronic devices. Allowable limits are governed by the FCC.  Music, HBO Hyperbaric oxygen therapy (HBO)
A form of oxygen therapy in which the patient breathes oxygen in a pressurized chamber.

Mentioned in: Ozone Therapy
 Video, Hewlett Packard, Hitachi, Image Entertainment, JVC JVC Victor Company of Japan (or Japan's Victor Company)
JVC Jewelers Vigilance Committee
JVC Jesuit Volunteer Corps
JVC Jet Vane Control (directs VLS-launched missiles)
JVC Jonker-Volgenant-Castanon
 Company of America, Lionsgate, MGM MGM
 in full Metro-Goldwyn-Mayer, Inc.

U.S. corporation and film studio. It was formed when the film distributor Marcus Loew, who bought Metro Pictures in 1920, merged it with the Goldwyn production company in 1924 and with Louis B. Mayer Pictures in 1925.
 Home Entertainment, Microsoft, New Line Home Entertainment, Panasonic Consumer Electronics, Paramount Home Entertainment Paramount Home Entertainment (formerly Paramount Home Video) and (Paramount Video) is a home video company founded in 1976. It is a division of Paramount Pictures, which in turn is owned by Viacom. , Philips Electronics, Pioneer Electronics (USA), Sony BMG Music Entertainment, Sony Electronics, Sony Pictures Home Entertainment Sony Pictures Home Entertainment is the home video distribution arm of Sony Pictures Entertainment, a subsidiary of Sony Corporation. It was established in 1978 as Columbia Pictures Home Entertainment. , Thomson, Toshiba America Consumer Products, Twentieth Century Fox Home Entertainment, Universal Music Group, Universal Studios Home Entertainment Universal Studios Home Entertainment (formerly Universal Studios Home Video or MCA/Universal Home Video) is a home video company founded in 1979. It is a division of Universal Studios. It was originally known as MCA Videocassette, Inc.  and Warner Home Video Warner Home Video is the home video unit of Warner Bros. Home Entertainment Group, a division of Warner Bros. Entertainment, Inc. It was founded in 1978 as WCI Home Video (for Warner Communications, Inc.). It was re-named Warner Home Video in 1980. .

Associate members are AGI (Artificial General Intelligence) A machine intelligence that resembles that of a human being. Considered impossible by many, most artificial intelligence (AI) research, projects and products deal with specific applications such as industrial robots, playing chess,  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 DADC Denver Automotive & Diesel College
DADC Digital Audio Disc Corporation
DADC Digital Air Data Computer
DADC destination area distribution center (US Postal Service; fee for bulk mail) 
, 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.
COPYRIGHT 2006 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Date:Jan 5, 2006
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