Dvd Player Sales Up 10% Over 2003

The DVD format maintained its allure for consumers in 2004, when hardware sales and software shipments reached new highs, according to the Digital Entertainment Group.

At the Consumer Electronics Show in Las Vegas, L.A.-based DEG announced Jan. 6 that more than 37 million DVD players were sold in the United States last year. That is a 10% increase from 2003. The hardware figures, which were compiled by the Consumer Electronics Assn., also revealed that more than 127 million DVD players have been sold since the format launched in 1997.

DVD player sales set a record in fourth-quarter 2004. More than 17 million players were sold during that period, a slight increase over the 16.9 million players sold in fourth-quarter 2003.

DEG further reported that the total number of DVD households has reached 70 million and that about 45% of DVD owners have more than one player. The group projects that more than 80% of U.S. households will have at least one DVD player by the end of this year.

On the software side, DEG said U.S. consumers spent a record $21.2 billion renting and buying DVDs in 2004. Total home video spending, including VHS sales and rentals, was $24.5 billion, a 9% increase over 2003.

Retail DVD sales reached $15.5 billion, a 33% increase over 2003. Spending on DVD rental totaled $5.7 billion, up from $4.5 billion in 2003.

More than 1.5 billion software units shipped in 2004, DEG reported, bringing shipments since 1997 to more than 3.9 billion discs. Software figures were compiled by Kaplan, Swicker and Simha on behalf of DEG.

The fourth quarter was also a record-setter on the software side. About 530 million DVDs shipped to retail, a 39% increase over the previous year's fourth quarter.

DEG also announced the winners of its second annual awards in Las Vegas. Best Buy was named retailer of the year for 2004. The award was determined by votes from DEG members.

Three digital innovation awards, named for Emiel N. Petrone, the late founder of DEG, were determined by a panel of product reviewers. The Sony Qualia 004 SXRD projector won the Petrone Digital Innovation Award for sight, the Pioneer Elite DV-59AVI DVD player won the Petrone Digital Innovation Award for source and the Denon AVR-5805 receiver won the Petrone Digital Award for sound.

Five DEG creative excellence awards were determined by a panel of DVD reviewers. New Line Home Entertainment's "The Lord of the Rings: The Return of the King Extended Edition" DVD was named theatrical DVD title of the year. Warner Home Video's "Gone With the Wind: Collector's Edition" won catalog title of the year.

The TV-on-DVD title of the year was Sony Pictures Home Entertainment's "Seinfeld: Seasons 1-2." The direct-to-DVD title of the year was Buena Vista Home Entertainment's "The Lion King 11/2." The music-on-DVD title of the year was Universal Music Group's "Bon Jovi—This Left Feels Right: Live."