At a mid-year analysis it turns out DVD does much better than expected

Based on the performance year-to-date, the DVD-Video industry is on target to beat all earlier industry sales projections. According to the Consumer Electronics Association (CEA), in the first half of 2000 DVD player shipments were 2.7 million units. This is more than double the number shipped in the first half of 1999. This represents incremental shipments of 1.4 million units as compared to the same six-month period in 1999. If growth continues at this rate, there will be more than 9 million DVD-Video players shipped to United States retailers in calendar 2000, bringing the total units shipped since inception to more than 14 million.

According to figures compiled by CEA, there have been eight million players shipped to retail since the launch of DVD-Video in March 1997. The DVD Entertainment Group estimates that as many as 7.5 million DVD players are in consumer homes. “Based on the numbers that are currently being reported, it is clear that DVD-Video has reached beyond the early adopter and is well on its way to mass market acceptance,” said Emiel N. Petrone, chairman, DVD Entertainment Group and executive vice president, Philips Entertainment Group, Worldwide. “Based on the current growth trend, we expect to see a 10 percent household penetration well before the fall selling season. Once we pass that critical milestone, the possibilities for the fourth quarter are tremendous.” There are now more than 100 DVD player models marketed under 40 different consumer electronics brands. DVD-Video players are available at most traditional consumer electronics retailers and have become the focal point of the home theater category.

According to figures compiled by Ernst & Young on behalf of the DVD Entertainment Group, nearly 65 million DVD movies and music videos shipped in the first half of 2000, more than two and a half times the number of units shipped in the same period last year. Since the format’s launch in 1997, software shipments have reached 190 million units, according to the DVD Entertainment Group. Based on current growth rates, shipments will exceed 230 million DVD movies and music videos this year representing more than $4 billion in retail revenue. “DVD has allowed studios to enhance the home viewing experience by providing insightful added value programming,” Sandy Friedman, vice president/secretary of DVD Entertainment Group and head of worldwide operations at DreamWorks Home Entertainment. “As a result, we’re seeing consumers embrace the format and actively collecting movies and music videos on DVD.” With all the major movie studios and music labels supporting the DVD-Video format, there are nearly 7,000 titles now available. The DVD Entertainment Group predicts that number to grow to more than 8,500 by the end of 2000.

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