Consumers Spent More Than Ever on Home Video in 2000
According to VSDA's VidTrac program, video rental revenues for 2000 totaled $8.25 billion, with VHS contributing $7.68 billion and the rapidly emerging DVD format contributing $570 million. These figures are up 2.2% from 1999's rental revenue total of $8.07 billion. It is worth noting, the VSDA points out, that DVD rentals accounted for just over 4% of all rentals in January of 2000 and steadily increased to an average of 12% in December of 2000. The past year also saw the biggest rental title of all time: The Sixth Sense, released by Disney's Buena Vista/Hollywood arm, earned over $135 million total last year, with almost $126 million in VHS rental revenues and another $9 million in DVD rentals.
On the sales, or "sell-through" side of the video industry, Adams Media Research recently estimated 2000 year-end video sales revenue at $11.67 billion, which is an almost 27% increase over 1999 sales of $9.26 billion. In 2000, the growth in DVD software sales jumped a whopping 269% over 1999, with DVD year-end 2000 sales totaling $4.03 billion, according to AMR.
VSDA's Bo Andersen says that "this year's increase in industry revenues reflects the continued popularity of home video as a favorite entertainment source among consumers. Consumers continue to vote with their video rental dollars, ranking it tops in value, convenience, comfort, and the widest selection of filmed entertainment available anywhere."