Consumers spent more than ever on Home Video in 2000

American consumers spent more than ever on home video in 2000, with rentals and sales of VHS and DVD hitting the $20 billion mark for the first time in home video’s 20+ year history. On the rental side of the video business, the total combined revenues of both DVD and VHS video formats rose 2.2% in 2000 over 1999. A major impact on this mark is the remarkably popular new DVD video format. The announcement was made today by Bo Andersen, president of the home entertainment industry’s international trade group — the Video Software Dealers Association (VSDA).

According to VSDA’s VidTrac program — the video industry’s most accurate video rental retrieval system, based on actual rental transactions — video rental revenues for 2000 totaled $8.25 billion, with VHS contributing $7.68 billion and the rapidly emerging consumer-favorite DVD format contributing $0.57 billion. These figures are up 2.2% from 1999’s rental revenue total of $8.07 billion.

Worth noting is that DVD rentals accounted for just over 4% of all rentals in January of 2000 and steadily increased to an average of 12% in December of 2000. The 2000-year also saw the biggest rental title of all time — “The Sixth Sense” — released by Disney’s Buena Vista/Hollywood arm, which earned over $135 million total last year, with almost $126 million in VHS, rental revenues and another $9 million in DVD rentals.

On the sales or “sell-through” side of the video industry, Adams Media Research recently estimated 2000 year-end video sales revenue at $11.67 — an almost 27% increase over 1999 sales of $9.26 billion. The growth in DVD software sales in 2000 jumped a whopping 269% over 1999, totaling DVD year-end 2000 sales of $4.03 billion.

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