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DVD Sales Boom, 2004 a Record Year

Yet another new media taking names and kicking old media ass:

DVD sales posted huge gains in 2004 for the fifth year running but the number of DVD players purchased for U.S. homes is slowing, causing industry analysts to warn that sales growth of the digital discs may be waning domestically.

Hollywood studios, which count on DVD sales and rental revenues to offset ballooning movie budgets, basked in a record $15 billion in DVD sales in 2004 spurred by releases of hot titles like DreamWorks Animation SKG Inc's "Shrek 2," while U.S. box office revenue came in a $9.4 billion.

A PriceWaterhouseCoopers report forecasts that the rate of growth in DVD sales will slow from 23 percent in 2003 to 7 percent by 2008. Some 83 million U.S. homes had DVD players by 2004, up from 75 million in 2004, according to PriceWaterhouseCoopers.

Wednesday, February 09, 2005 | 11:51 AM | Permalink | Comments (1) | TrackBack (0)
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Comments

Just a thought...wouldn't sales of DVD players slow once nearly everyone who wanted one had one? And I'm not too sure how this would lead to signifigantly lower disc sales, as people will still buy movies they wanted on DVD.

If Hollywood truly wanted to make money on lower-budget movies, they'd start making better movies that didn't require blowing up the entire state of Kansas for a scene.

Posted by: thrashbluegrass | Feb 9, 2005 1:52:43 PM