Audio Video News

According to the numbers revealed by the Video Software Dealers Association (VSDA) last week, American consumers spent more than ever on home video in 2000, with rentals and sales of VHS and DVD hitting the $20 billion mark for the first time in home video's twenty-plus–year history. On the rental side of the video business, the VSDA reports that the total combined revenues of both DVD and VHS video formats rose 2.2% in 2000 over 1999. The "remarkably popular" new DVD video format made a major impact on this mark, says the not-for-profit trade group.

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."