DVD Disc Sales Value Slows, But New Technologies Will Spur International Growth, Says In-Stat

7-Dec-05

A variety of new content delivery options for the home are creating tumultuous times for the movie industry, reports In-Stat. While standard-definition DVD sales are still going well, that market is likely nearing its peak, the high-tech market research firm says. What's more, it's unclear how alternative delivery systems will impact the changing home entertainment landscape and DVD sales.  ""The migration to next-generation High Definition optical disc formats is not going smoothly,"" said Gerry Kaufhold, In-Stat analyst. ""The PC industry is champing at the bit to provide downloaded movies that might compete with DVD sales, and Pay-TV services want to add movies to their Video-On-Demand (VOD) services, to their new disk-drive-equipped set top boxes, and to their emerging High Definition TV (HDTV) services."" A recent report by In-Stat found the following: -- By 2009, In-Stat forecasts a worldwide retail value of US$50 billion for annual sales of Hollywood video content sold at retail. -- By 2009, 41% of U.S. TV households will be watching movies on HDTV displays. -- DVD players that support HDMI deliver High Definition quality today, so next-generation High Definition optical products will need to provide ""something more."" -- Over 40% of Japanese households will have wide-screen HDTV sets by 2009, and Europe and other Asian markets are already seeing robust sales of HDTV displays. -- Portable player products and online download services are likely to lead industry growth, especially in Europe and Asia. -- The bulk of the Hollywood movie and TV show DVD market value comes from just six countries: Japan, the United States, Canada, the United Kingdom, France and Germany. -- The intense media interest in next-generation optical disc formats is selling lots of magazines, but will not have much impact on the Hollywood ""packaged goods"" business until late in the decade. The report, ""The Changing Face of Studio Video Sales: Grow New Markets, Push High Definition, Get Interactive"" (#IN0501913CM), covers the market for movie studio video sales. It includes analysis of technology and market trends for the number of TV Households, by region, that have at least one wide-screen HDTV-capable video display. The report also forecasts annual retail sales of Hollywood video products by category and by region through 2009. Profiles of major players in the home video industry are also provided.

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