December Caps Strong Year In Video Sales

Manufacturer-to-dealer sales of video products grew by 28.6 percent in December, totaling just under 5.6 million units and rounding out a year of fantastic growth in the category, according to figures issued today by the Consumer Electronics Association (CEA). Total sales of video products in 1999 topped 60 million units, increasing by 22 percent over 1998. In addition, virtually every category (with the exception of direct view color TVs) experienced double-digit increases for the year. The sales gains made in individual categories were even more impressive. Sales of direct view color TVs in 1999 rose by 5 percent, to a year-end total of 23.2 million units, the sub-category's best shipment year since 1995. In addition, VCR sales increased by 26 percent on the year to 22.8 million units - the best year for VCRs ever, and by a tremendous margin. Sales of TV/VCR combinations reached 366,170 units in the month, a 30 percent increase over last December, bringing total year sales more than 40 percent ahead of 1998. Finally, camcorders had a particularly strong month, with sales increasing by 72 percent over last December.One of the more significant aspects of video sales in 1999 was the growth of home theatre-related products. Sales of projection TVs increased by more than 15 percent for the year, and sales of direct view TVs 29 inches and higher grew by 11 percent. These figures, as well as the fact that sales of stereo VCRs (more than half of all VCRs) increased by 27 percent, all point to consumers' fast-growing interest in the home theater experience.Another factor that contributed to the home theatre trend was the product that realized the most explosive growth by far in the video category - DVD players. During 1999, DVD players became the fastest selling product in the history of consumer electronics (based on sales during the first three years of a product's introduction), with sales topping 4 million units.Gary Shapiro, President and CEO of CEA, commented, ""1999 was a tremendous year for video sales. Consumers' increasing interest in digital technologies and the home theater experience have made for an explosive video marketplace. We expect 2000 to continue this trend, with tremendous increases in the sales of new and exciting digital products such as DVD players, personal video recorders and digital television.""

Source: Consumer Electronics Association (CEA)