DVDS RECORDING BIG FIGURES CONSUMER SALES SURPASS $12 BILLION LAST YEAR.

Byline: Greg Hernandez Staff Writer

Calling 2003 ``the year of the DVD,'' the Video Software Dealers Association announced Monday that consumer purchases of DVDs totaled up to more than $12 billion last year, an impressive 45 percent jump from 2002's $8.7 billion.

While DVD sales revenue increased by $3.9 billion, consumers spent an additional $4.3 billion renting titles in the format, up 53 percent from the year before, according to the VSDA, a trade association for the home-entertainment industry.

``We have simply run out of superlatives to describe the DVD phenomenon,'' said VSDA President Bo Andersen. ``It's bigger and better than anyone imagined it could be.''

With half of American households now equipped with at least one DVD player, the industry is seeing an average of 17 DVD titles being purchased per player. This is nearly three times the number of VHS titles bought during that format's peak year in 1996.

Contributing to the DVD buying boom is the fact that prices for the discs were lower than ever by the end of 2003, an average of $20.21. This is significantly down from a high of $25.53 in 1999.

Many major retail chains use new-release titles as loss leaders during their debut week to draw traffic into their stores, which results in titles being available for as low as $15.99 at some places. Additionally, selling used DVDs at a discount price has become commonplace for the national Blockbuster and Hollywood video store chains as well as independents.

Blockbuster, the nation's largest video store chain, has also expanded its offerings of brand-new DVD titles for purchase and recently had a promotion that allowed customers to trade in a DVD and get a new release title for $12.99.

``DVD retail has become an increasingly important part of our business,'' said Blockbuster spokesman Blake Lugash. ``As we continue to transition with the industry, we see that making DVDs available to buy as well as rent in our stores is important to our customers.''

The number of DVDs rented also set a record in 2003 with approximately 1.3 billion DVDs rented during the year through Dec. 21 - up 55 percent from the same period in 2002.

Another factor in the DVD boom is that the industry is putting out new product at a breakneck pace as consumers are eager to build up their collection of titles. About 160 new DVD titles are released each week with an estimated 30,000-plus titles now available on DVD.

Looking ahead, Andersen anticipates continued strong growth in the DVD sales and rental markets this year.

``Home video is America's favorite way to watch the latest movies, and DVD is America's favorite home video format,'' he said. ``The superior video and audio quality, the bonus scenes, and the special features of DVD have captivated the American public.''

Greg Hernandez, [phone]

greg.hernandez(at)dailynews.com

BY THE NUMBERS

30,000

Titles available on DVD

160

DVD titles released each week

50

Percent of U.S. households with a DVD player

CAPTION(S):

box

Box:

BY THE NUMBERS (see text)