1999 Home Theatre Revenues Up Nearly $1 Billion To All Time High
Revenues from the sale of home theatre products experienced tremendous growth in 1999, eclipsing 1998 totals by nearly $1 billion, the Consumer Electronics Association (CEA) announced. Fourth quarter 1999 revenues totaled just over $3 billion, representing a 15 percent increase over fourth quarter 1998 figures, and brought the year-end total to more than $9.5 billion, an 11 percent increase over 1998. The video segment of home theatre products flourished in 1999, growing by 12 percent over 1998 to total revenues of $8.7 billion. Large screen direct view analog televisions comprised nearly half of the total sales dollars for the home theatre category, growing by 5 percent over 1998, to more than $4.5 billion. Also performing well were analog projection televisions, which increased by 4 percent over the previous year. The fastest growing product of the year, however, was the DVD player. In only its second full year of sales, the DVD player accounted for revenues of $1.1 billion, with $427 million in the fourth quarter alone. More than 5.5 million DVD units have been sold since introduction, making the DVD player the fastest growing consumer electronics product ever. The audio segment of home theatre also grew in 1999, increasing by 3 percent over 1998, demonstrating that audio is the soul of a home theatre system. Helping to fuel that growth was strong sales of A/V receivers, amps and separates during the fourth quarter, which grew by 7 percent over the fourth quarter of 1998. Not surprisingly, the two products in this segment that experienced the heaviest sales volumes in 1999 also posted significant growth, with surround sound receiver revenues up by 11 percent and home-theatre-in-a-box revenues up by 3 percent. About The CEA CEA is a sector of the Electronic Industries Alliance (EIA), the 76-year-old Arlington, Virginia-based trade organization representing all facets of electronics manufacturing and connecting the industries that define the digital age. CEA represents more than 600 U.S. companies involved in the development, manufacturing and distribution of audio, video, mobile electronics, communication, information technology, multimedia and accessories products that are sold through consumer channels. CEA also sponsors and manages the International CES - Your Source for Workstyle and Lifestyle Technology. All profits from CES are reinvested into industry services, including technical training and education, product promotion, engineering standards development, market research and governmental and legal affairs support. Source: CEA