SOURCE: Entertainment Merchants Association

July 16, 2007 09:27 ET

DVD Holds Its Own in Face of New Technologies

Sales and Rentals of DVDs Totaled Record $23 Billion in 2006

LAS VEGAS, NV--(Marketwire - July 16, 2007) - Despite competition from Internet-based movie delivery, cable and satellite on-demand, and digital cinema, DVD continues to attract the majority of consumer spending on movies, according to the 2007 Annual Report on the Home Entertainment Industry, which was released today. Relying on data from industry sources, the report states that consumers spent $23.0 billion on DVD purchases and rentals in 2006, compared to $9.5 billion in box office revenue and $982 million for Internet, cable, and satellite on-demand. The report was released in conjunction with EMA's Home Media Expo 2007, the annual convention for the home entertainment industry, which opens tomorrow at the Venetian Resort Hotel Casino in Las Vegas.

"While consumers are viewing filmed entertainment through an increasing variety of devices and services, they remain loyal to DVD," declared Bo Andersen, President of the Entertainment Merchants Association (EMA). "DVD will continue to be the most popular way for the public to view movies for the foreseeable future, and we expect high-definition discs to become the dominant home video format within five years."

The report, citing Adams Media Research, also notes that multi-line mass merchants continue their dominance of the DVD sales market, with a 43% market share, while consumer electronics retailers have 16% of the market and online retailers have 12.5%. In the rental market, publicly traded video rental chains account for 43% of the market, other video stores have 39%, and online rental services now have a market share of 16%. The kiosk segment was less than 1% of the DVD rental market last year, but is expected to rapidly increase its market share.

The 2007 Annual Report on the Home Entertainment Industry provides comprehensive data on and analysis of sales and rentals of DVDs, high-definition discs, video on demand, computer and console video games, and competing technologies. It is widely used by financial analysts, home entertainment industry executives, journalists, and others who want to understand the current state of the industry and its future prospects.

The report may be purchased from EMA online at www.EntertainmentMerchantsAssociation.org or by phone at 800-955-8732.

[EDITOR: Journalists may obtain complementary copies of the report by contacting Grace Lee at 818-385-1500 x244; glee@entmerch.org.]

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