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Video Industry Facts
- For an overwhelming majority of Americans, renting and
buying prerecorded DVDs, videocassettes, and video games remains
an integral component of their entertainment options.
- Home video is the most popular way for Americans to view the
latest movies.
- More than 65 million households in the U.S., approximately
60% of all television households, now own a DVD player. More
than 94 million households are equipped with a VCR.
- Last year, consumers spent $24.1 billion buying and
renting DVDs and VHS cassettes, far surpassing the $9.4 billion
that moviegoers spent at the theatrical box office. Consumer
spending on home video in 2004 increased 15 percent over 2003.
- Consumers spent $16.1 billion purchasing DVDs and videotapes
in 2004, with DVDs representing 94% of the sales revenue.
- Video rental revenue totaled $8.1 billion last year, with
71% of the revenue coming from DVD rentals. It is estimated
that 1.75 billion DVDs and 842 million VHS tapes were rented
in 2004.
- In 2004, the average DVD household bought approximately 16
DVDs. This is nearly three times the peak average number of
VHS titles purchased per year.
- The home video industry is an enormously profitable channel
for studio film revenues. Total revenue to the studios from
video sales and rentals totaled $13 billion in 2002. Revenue
from home video accounts for approximately 60% of the studios’
gross domestic film revenue.
- Forty percent of households have a video game console. Console
video game sales totaled $5.2 billion in 2004, representing
161 million units. Rental revenue was $0.7 billion from 127
million rentals in 2004.
- The average gamer will rent 2.4 titles per month in order
to try them out before making a purchase.
- There are 24,300 video rental specialty stores in the U.S.
These stores included the major public chains such as Blockbuster,
Hollywood Video, Movie Gallery, and a significant number of
independent retailers. It is estimated that just under 50%
of video specialty stores currently are single-store operations.
Another 4,100 non-specialists, primarily supermarkets and
drugstores, also rent video as a regular part of their business.
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