U.S. Blu-Ray Player Sales Approach Ten Million

The home entertainment market proved stable in
2008, reaching $22.4 billion in U.S. consumer spending on DVD and
Blu-ray software sales. This and other home entertainment year-end
sales figures were announced by DEG: The Digital Entertainment
Group at the recent International Consumer Electronics Show (CES).

U.S. CONSUMER HOME ENTERTAINMENT
RENTAL & SELL THROUGH SPENDING (in billions)

YEAR	VHS/UMD	DVD	BD/Hi-Def	TOTAL
1999	$12.5	$0.8	$0.00	$13.3
2000	$11.8	$2.5	$0.00	$14.3
2001	$11.1	$6.8	$0.00	$17.9
2002	$9.1	$11.6	$0.00	$20.7
2003	$6.1	$16.1	$0.00	$22.2
2004	$3.7	$21.2	$0.00	$24.9
2005	$1.6	$22.8	$0.00	$24.4
2006	$0.4	$24.1	$0.00	$24.5
2007	$0.1	$23.3	$0.27	$23.7
2008	$0.0	$21.6	$0.75	$22

(Source: DEG: The Digital Entertainment Group)                                                  

The
Blu-ray Disc format was the bright spot in the home entertainment
category and proved popular among consumers spending on software
growing fourfold to nearly $750 million. According to the DEG, 250
percent more Blu-ray discs shipped to retail in 2008 versus the
previous year. According to the Hollywood-based trade group, with input
from all major motion picture studios, combined DVD and Blu-ray Disc
sales remained resilient, with consumer spending in excess of $22
billion for the year.

While U.S. DVD
sales were off by 9 percent at $14.5 billion, rental transactions
(including kiosks) were flat at $7.5 billion. The growth in Blu-ray
helped offset the maturing DVD market bringing the overall category to
a single digit drop of 5.5 percent in total consumer spending.

This
stability underscores that the buying and renting of packaged media
remains a core spending choice for consumers who have grown accustomed
to the enhanced experience and convenience the medium provides.

BLU-RAY DISC SOFTWARE SHIPMENTS IN U.S. & CANADA (in millions)

QUARTER	2006	2007	2008
1st Quarter	N/A	1.694	9.220
2nd Quarter	N/A	3.542	12.616
3rd Quarter	N/A	3.214	12.718
4th Quarter	1.262	9.540	28.600
YEARLY TOTAL	1.262	17.99	63.154
TOTAL (since launch)	1.262	19.252	82.406

U.S. BLU-RAY DISC PLAYER SALES
APPROACH 10 MILLION UNITS
Sales
of Blu-ray Disc playback devices – including set-top box and game
consoles – sold through almost 10 million units since launch. Three
million devices sold in the fourth quarter alone, bringing total units
sold to 9.654 million in calendar 2008, according to numbers compiled
by the DEG with input from retail tracking sources.

The
DEG estimates that more than 50 million HDTV sets have sold to
consumers bringing the number of HDTV households to nearly 40 million.
The DEG further estimates that 22 percent of these households have more
than one set. The analog shut-off date in February 2009 is also
helping to spur sales of HDTV and encourage consumers to embrace high
def platforms, such as Blu-ray. An HDTV provides the ideal medium for
consumers to enjoy their Blu-ray players and get the best HD experience.

The
Blu-ray players are available at more than 10,000 storefronts and are
marketed from leading manufacturers. There are nearly 80 Blu-ray
playback devices available, with set-top models from as low as $149
(manufacturers’ suggested retail price – street prices may vary).

DVD U.S. HOUSEHOLDS TOPS 92 MILLION
According
to figures compiled by the DEG based on data from Consumer Electronics
Association (CEA) retailers and manufacturers, an estimated 25 million
DVD players were sold to U.S. consumers in 2008.

Since
launch in spring 1997, some 264 million DVD players, including set-top
and portable DVD players, Home-Theater-in-a-Box systems, TV/DVD and
DVD/VCR combination players, have sold to consumers, bringing the
number of DVD households to approximately 92 million (adjusting for
households with more than one player). The DEG estimates that 63.5
percent of DVD owners have more than one player.

U.S. DVD HARDWARE SALES (in millions)

QUARTER	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008
1st Quarter	.030	.094	.358	1.350	2.220	3.565	4.858	6.855	7.741	7.852	8.350	6.01
2nd Quarter	.079	.149	.611	1.435	2.404	3.750	5.506	6.057	6.006	6.676	6.396	4.98
3rd Quarter	.077	.244	.880	1.550	2.537	4.740	6.470	6.593	6.250	6.831	6.139	5.39
4th Quarter	.119	.459	1.701	5.542	9.501	13.058	16.9	17.621	16.740	11.301	12.633	8.85
YEARLY TOTAL	.305	.946	3.550	9.877	16.662	25.113	33.734	37.125	36.737	32.66	33.518	25.23
TOTAL (since launch)												264.262

*Includes set-top and portable DVD players, Home Theater in Box systems,
TV/DVD and DVD/VCR combination players
(DEG: Digital Entertainment Group)

DVD U.S. SOFTWARE SHIPMENTS EXCEED
10 BILLION UNITS SINCE LAUNCH
In
the fourth quarter 2008, some 453 million DVDs shipped to retail,
according to figures compiled by Swicker & Associates on behalf of
the DEG. More than 1.4 billion software units shipped throughout 2008
and more than 10 billion discs have shipped since the DVD format
launched in 1997.

DVD-VIDEO SOFTWARE SHIPMENTS IN U.S. & CANADA
(in millions)

QUARTER	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008
1st Quarter	N/A	3.3	11.1	29.0	69.2	120.1	231.7	332.2	403.0	395.8	372.0	344.7
2nd Quarter	N/A	4.1	13.9	33.2	81.7	152.2	195.5	316.8	369.1	346.1	297.1	315.8
3rd Quarter	2.3	5.9	29.0	42.7	75.9	153.3	214.6	340.9	347.9	343.3	314.7	293.0
4th Quarter	3.2	11.8	44.0	77.5	137.6	259.4	381.5	528.4	536.7	571.4	662.2	453.6
YEARLY TOTAL	5.5	25.1	98.0	182.4	364.4	685.0	1023.3	1,518.3	1,656.9	1,656.6	1,688.4	1,407.1
TOTAL SHIPMENTS (since launch)		30.6	128.6	311.0	675.4	1,360.4	2,383.7	3,902.0	5,558.9	7,215.3	8,903.7	10,268.4

(Figures compiled by Swicker & Associates on behalf of the DEG:The Digital Entertainment Group)