DVD Drives Video Industry to Record-Breaking Year; Home Video Enjoys $22.5 Billion in Annual Sales; DVD Players in More Than Half of U.S. Homes and Expected to Reach Two-Thirds in 2004.Business & Entertainment Editors/High-Tech Writers 2004 International CES LAS VEGAS--(BUSINESS WIRE)--Jan. 8, 2004 For the second consecutive year, 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. sales have helped make home video America's most popular entertainment medium with consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. exceeding that of movie tickets, video games See video game console. , music and mass-market books, announced today by the DEG: The Digital Entertainment Group at the International Consumer Electronics Show. In 2003, consumers spent $22.5 billion renting and buying DVD and 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. versus $9.2 billion moviegoers spent at the theatrical box office. Consumer spending on home video was up 18.2 percent over last year with DVD representing 72 percent of all home video transactions. DVD retail sales grew to $11.6 billion in calendar 2003, an increase of 33 percent over last year. Consumers also spent $4.5 billion renting DVDs, up 55 percent from 2002. The fourth quarter was particularly strong for DVD with more than 381 million DVD titles shipped to retail according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. figures compiled by Kaplan, Swicker and Simha on behalf of the DEG. This is a 43 percent increase over the fourth quarter 2002. More than one billion software units were shipped in 2003 bringing the total number of units shipped since launch to nearly 2.4 billion discs.
NORTH AMERICAN DVD-VIDEO SOFTWARE SHIPMENTS BY QUARTER (in millions)
QUARTER 1997 1998 1999 2000 2001 2002 2003
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1st Quarter N/A 3.3 11.1 29.0 69.2 120.1 231.7
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2nd Quarter N/A 4.1 13.9 33.2 81.7 152.2 195.5
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3rd Quarter 2.3 5.9 29.0 42.7 75.9 153.3 214.6
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4th Quarter 3.2 11.8 44.0 77.5 137.6 259.4 381.5
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YEARLY TOTAL 5.5 25.1 98.0 182.4 364.4 685.0 1023.3
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TOTAL 30.6 128.6 311.0 675.4 1,360.4 2,383.7
(a/o 12/31/03)
Figures compiled by Kaplan, Swicker & Simha on
behalf of the DEG: Digital Entertainment Group
"With sales of both hardware and software reaching new record levels, the DVD format See VOB and DVD. has emerged as the dominant format in the home entertainment industry," said Bob Chapek, president of Buena Vista Home Entertainment and president of DEG: The Digital Entertainment Group. "We should all look ahead with unbridled enthusiasm as the growth of this format grows further into the mass market which will prove to open even more doors for this industry." There are currently some 29,000 DVD titles available. "Finding Nemo" (Buena Vista Home Entertainment) topped the year's DVD sales followed by numerous DVDs that broke sales records in 2003, selling in excess of five million copies.
DVD-VIDEO TITLES THAT SOLD IN EXCESS OF 5 MILLION UNITS IN 2003
(in alphabetical order)
TITLE STUDIO
--------------------------------------- -----------------------------
2 Fast 2 Furious Universal Studios Home Video
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8 Mile Universal Studios Home Video
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Bad Boys 2 Columbia TriStar Home
Entertainment
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The Bourne Identity Universal Studios Home Video
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Bringing Down the House Buena Vista Home Entertainment
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Bruce Almighty Universal Studios Home Video
--------------------------------------- -----------------------------
Catch Me If You Can DreamWorks Home Entertainment
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Chicago Buena Vista Home Entertainment
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Die Another Day MGM Home Entertainment
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Finding Nemo Buena Vista Home Entertainment
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Freaky Friday Buena Vista Home Entertainment
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Harry Potter and the Chamber of Secrets Warner Home Video
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Indiana Jones Collection Paramount Home Entertainment
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The Lion King: Special Edition Buena Vista Home Entertainment
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The Lord of the Rings: Two Towers New Line Home Entertainment
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The Matrix Reloaded Warner Home Video
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My Big Fat Greek Wedding HBO Video
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Old School: Unrated DreamWorks Home Entertainment
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Pirates of the Caribbean: The Curse of Buena Vista Home Entertainment
the Black Pearl
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The Ring DreamWorks Home Entertainment
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Scarface Universal Studios Home Video
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Seabiscuit Universal Studios Home Video
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Signs Buena Vista Home Entertainment
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Sweet Home Alabama Buena Vista Home Entertainment
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Terminator 3 Warner Home Video
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The Santa Clause 2 Buena Vista Home Entertainment
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X2: X-Men United Twentieth Century Fox Home
Entertainment
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XXX Columbia TriStar Home
Entertainment
Source: Video Store Magazine
TOP 10 DVD-VIDEO RENTAL TITLES IN 2003
(by ranking)
TITLE STUDIO
--------------------------------------- -----------------------------
The Bourne Identity Universal Studios Home Video
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Catch Me If You Can DreamWorks Home Entertainment
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Old School DreamWorks Home Entertainment
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Bringing Down the House Buena Vista Home Entertainment
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Signs Buena Vista Home Entertainment
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How to Lose A Guy In 10 Days Paramount Home Entertainment
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The Ring DreamWorks Home Entertainment
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My Big Fat Greek Wedding HBO Video
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Sweet Home Alabama Buena Vista Home Entertainment
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Phone Booth Twentieth Century Fox Home
Entertainment
Source: Rentrak
Music on DVD Swells In Popularity Music on DVD titles, including both DVD Music Video and DVD-Audio, continue to be a growing part of the DVD format. Sales for DVD Music Video titles jumped 102 percent in 2003, to 17.2 million units, according to Nielsen SoundScan. Total sales are expected to climb higher still for the coming year. There are currently more than 4,000 DVD Music Video and DVD-Audio titles available. All of these can be played on a current DVD player A stand-alone device that plays DVDs. It contains a DVD drive and the electronics to decode the digital video. The device may play only manufactured DVDs, or it may be able to play DVD-R, DVD-RW and DVD+RW discs. DVD players are cabled to a TV or home theater system for display. , or in a DVD-Audio/Video model to experience the Advanced Resolution sound of DVD-A See DVD-Audio. titles. As with DVD Music Video, DVD-Audio offers fans "backstage access" to bonus features such as additional footage, lyrics, exclusive photos and other extras. DVD Music Video titles are available from a variety of artists across a broad range of genres, with some of 2003's bestsellers including DVDs from Cher (Image Entertainment), Dixie Chicks (Columbia Records For the Columbia Records label which was a unit of EMI, see . For the Columbia Records label in Japan, see . Columbia Records is the oldest surviving brand name in recorded sound, dating back to 1888, and was the first record company to produce pre-recorded records as ), Norah Jones Norah Jones (born Geethali Norah Jones Shankar on March 30 1979 in Brooklyn, New York) is an American singer-songwriter, musician and occasional actress of American and Indian descent. (BlueNote Records), Dave Matthews
David John Matthews (born January 9 1967) is a South African, now naturalized American, Grammy-winning lead vocalist and guitarist for the Dave Matthews Band. Band (RCA Records RCA Records is one of the flagship labels of Sony BMG Music Entertainment. RCA Records was founded in 1901 as the Victor Talking Machine Company, and the RCA initials stand for Radio Corporation of America, which was the parent corporation in the pre-BMG days. ), Paul McCartney Noun 1. Paul McCartney - English rock star and bass guitarist and songwriter who with John Lennon wrote most of the music for the Beatles (born in 1942) McCartney, Sir James Paul McCartney (Capitol Records Capitol Records is a major United States-based record label, owned by EMI, located in Hollywood, California. Its headquarters building, the Capitol Tower, is a major landmark near the corner of Hollywood and Vine. ), Rolling Stones Rolling Stones, English rock music group that rose to prominence in the mid-1960s and continues to exert great influence. Members have included singer Mick Jagger (Michael Phillip Jagger), 1943–; guitarists Brian Jones (Redline Entertainment), Tenacious D (Epic Records Epic Records is an American record label, owned and operated by Sony BMG. Electric Light Orchestra, Ozzy Osbourne, Sade, Luther Vandross, Gloria Estefan, George Michael, Cyndi Lauper, and Duran Duran paved the way for Epic's multiplatinum 1980s and 1990s successes. ) and Led Zeppelin Led Zeppelin, English pop music group formed in 1968 by guitarist Jimmy Page (1944–), singer Robert Plant (1948–), bassist John Paul Jones (1946–), and drummer John "Bonzo" Bonham (1948–80). (Atlantic Records  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. ). Top DVD-Audio discs of the year also featured a variety of
artists such as The Beach Boys (Capitol Records), Blue Man Group (Virgin
Records), Fleetwood Mac (Warner Bros. Records Warner Bros. Records Inc. is an American record label that operates as a wholly owned subsidiary of Warner Music Group. It is internationally known as WEA International Inc. ), Queen (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. Entertainment), R.E.M. (Capitol Records), Santana (Arista Records),
Sting (Universal Music Group).More Than 90 Million DVD Players Sold in the U.S. 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, nearly 34 million DVD players were sold to U.S. consumers in 2003, approximately a 34 percent increase over last year. And, nearly 17 million DVD players sold in the fourth quarter alone, a 29 percent increase over the same period last year. In total, more than 90 million DVD players have sold since launch, bringing the number of DVD households to nearly 57 million (adjusting for households with more than one player). Due to the variety of players available, approximately 37 percent of DVD owners have more than one player. "DVD players have a profound impact on the consumer electronics landscape," said Joe Stinziano, general manager, home audio/video, Sony Electronics and vice president, DEG. "And, with the broad range of hardware available, DVD will play an even greater role in the future."
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 4.858
---------------- ----- ----- ------ ------ ------- ------- ----------
2nd Quarter .079 .149 .611 1.435 2.404 3.750 5.506
---------------- ----- ----- ------ ------ ------- ------- ----------
3rd Quarter .077 .244 .880 1.550 2.537 4.740 6.470
---------------- ----- ----- ------ ------ ------- ------- ----------
4th Quarter .119 .459 1.701 5.542 9.501 13.058 16.9
---------------- ----- ----- ------ ------ ------- ------- ----------
YEARLY TOTAL .305 .946 3.550 9.877 16.662 25.113 33.734
---------------- ----- ----- ------ ------ ------- ------- ----------
TOTAL 90.187
(since launch) (a/o 12/31/03)
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
The DEG estimates that 30 million additional players will be sold in 2004 bringing household penetration to about 65 percent. The DEG projects that two out of every three homes will have a DVD player by the end of 2004. The DEG: Digital Entertainment Group (formerly the DVD Entertainment Group) is a Los Angeles-based, industry-funded nonprofit corporation nonprofit corporation n. an organization incorporated under state laws and approved by both the state's Secretary of State and its taxing authority as operating for educational, charitable, social, religious, civic or humanitarian purposes. 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. 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 offers opportunities 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 Buena Vista Home Entertainment, Columbia TriStar Home Entertainment, DreamWorks Home Entertainment, DTS Entertainment, 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. Recorded 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, 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, Lions Gate Entertainment
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, 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 Consumer Electronics Philips Consumer Electronics is a part of Koninklijke Philips Electronics N.V. (usually known as Philips); and is one of the largest electronics companies in the world. In 2005, its sales were € 30.4 billion (US$38. , Pioneer Electronics (USA), Sony Electronics, Sony Music Entertainment Sony Music Entertainment is a major global record label controlled by the Sony Corporation. In 1988, Sony Corporation acquired CBS Records, Inc. for $2 billion. CBS Inc., now CBS Corporation, retained the rights to the CBS name, and Sony renamed the label , Thomson, Toshiba America Consumer Products, Twentieth Century Fox Home Entertainment, Universal Music Group, Universal Studios Home Video 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 Alta Resources, Blink Digital, Clear-Vu Products, Deluxe Media Services, Digital Video Compression Corporation, InterActual Technologies, Macrovision, Metropolis DVD, MX Entertainment, Muze, Sonopress, Sony Disc Manufacturing and Technicolor. Interested consumers can reach the DEG at (310) 967-2940, via e-mail at getinfo@digitalentertainmentinfo.com or through its web site at www.digitalentertainmentinfo.com. |
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