The latest holiday season numbers are now in, and the <A HREF="http://www.ce.org">Consumer Electronics Association</A> (CEA) is reporting that manufacturer-to-dealer video products sales in December, 2000 grew by 15% over last year's figures, giving a total of more than 6.4 million units shipped, and culminating a year of strong growth. The CEA reports that total sales of video products in 2000 reached 67.8 million units, representing a 12% increase over total sales for 1999. The trade group adds that the year finished with sales increases in almost every category.
The year 2001 wasn't a good one for <A HREF="http://www.philips.com">Philips Electronics NV</A>. On February 8, the Dutch electronics giant reported a massive $2.26 billion (2.6 billion euros) loss for the year, blaming slowing demand for both finished consumer goods and raw semiconductors. Philips is one of the few companies with an equal presence in both markets.
According to a new report from market research company <A HREF="http://www.instat.com">Cahners In-Stat Group</A>, DVD sales will reach new heights over the next several years. Cahners points out that the DVD market has grown from nothing in 1996 to more than 28 million units expected to ship worldwide in 2001, and it estimates that sales will exceed 60 million units in 2004.
According to the numbers revealed by the <A HREF="http://vsda.org/">Video Software Dealers Association</A> (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.
Are bulk discounts and revenue sharing arrangements with suppliers illegal? A group of independent video dealers thinks so. The dealers have teamed up to sue <A HREF="http://www.blockbuster.com/">Blockbuster Video</A>, the industry's undisputed leader, over what they claim are "illegal practices" that they contend have caused many of their colleagues to go out of business.
Three decades ago, Alvin Toffler coined the term future shock to describe the malaise caused by the increased pace of new technology and information. Consumers of home-entertainment electronics experience some degree of <I>future shock</I> with every new technology: high-definition television, DVD-Video, DVD-Audio, and all these new surround-sound formats.