Home Video - VHS will be history and HD-DVD will hit $18.3B
In
the wake declines in rental revenue and the HD-DVD format war, the home
video industry sales will drop 0.4% in 2006 to $24.1
billion, according to Kagan Research's new study THE
STATE OF HOME VIDEO. The video rental revenues are expected to be
off 8.3% to $7.2 billion while sell-through revenue is estimated to grow
3.4%, with DVD revenue hitting $16.8 billion.
| Home Video Market | 2006 | 2009 | 2012 | 2015 |
| HD-DVD | $0.08B | $2.64B | $14.98B | $18.33B |
| Standard DVD | $16.75B | $16.78 | $12.92B | $8.34B |
| VHS | $0.09B | - | - | - |
| Source:Kagan Research's THE STATE OF HOME VIDEO (October 2006) | ||||
In 2006, $16.8 billion of the $16.9
billion DVD revenue will come from standard-definition DVD. However by
2009, VHS will be virtually extinct and high-definition DVD revenue should
grow to more than $2.6 billion with either one winning format or a
combination HD DVD/Blu-ray player being introduced to the market. By 2015,
VHS will be history and high-definition DVD will be the major-market
shareholder with $18.3 billion in revenue.
Other key findings and projections from THE STATE OF HOME VIDEO include:
- Total rental revenue is estimated to be $4.2 billion in 2015, posting a negative 5.8% CAGR for the decade.
- Online revenue has been steadily increasing its share of the market, grabbing 17.2% in 2005, or nearly $2.8 billion.
- Online revenue has posted a 182% CAGR since 1997, a larger growth rate than the bricks-and mortar growth of 115%.
- In 2005 , 491 DVD titles tracked by Kagan made $9.2 billion in wholesale revenue for the studios. The average wholesale price of a DVD grew 3.9% to $16.70 from $16.08 in 2004.
For more information on THE STATE OF HOME VIDEO (11TH EDITION) go to www.kagan.com/SHV-11
