Over a quarter of all European households will have DVD by the end of 2003, according to a report by Screen Digest. Take up of DVD is growing at such a rate that 28% of households are forecast to have adopted DVD within the next three years. DVD usage has grown at a far greater pace than VHS take up, achieving in six years the level of adoption it took VHS ten years to achieve following its launch.
The report from Screen Digest forecasts that by 2003, total consumer spending on video titles in western Europe will have risen by $2.1 billion (E2 billion) on 1999 totals. Despite the fact that only a third of households will have DVD players, the amount spent on DVD titles is forecast to overtake spending on VHS rising from $468 million (E420 million) in 1999 to $5.8bn (E5.3 billion) in 2003. VHS spending is predicted to fall from $6.1 billion (E5.7 billion) in 1999 to $2.9 billion (E2.8 billion) by 2003.
“There can be little doubt that DVD is going to change the video market radically over the next few years”, says Ben Keen of Screen Digest. “Even where DVD has yet to make a positive impact on companies’ bottom lines, it has been welcomed as the future of the video industry and many more players look set to enter the market to attempt to capitalise on its opportunities. In terms of the future, two of the key issues will be the effects that Region 1 imports and the future piracy potential of recordable DVDs will have on the market”.
| Western European DVD Market Totals, 1999-2003 |
| |
1999 |
2003 |
| Households with DVD players |
1.5 million |
45 million |
| Consumer spending on video titles |
|
$2.1 billion |
| Spending on VHS titles |
$6.1 billion |
$2.9 billion |
| Spending on DVD titles |
$468 million |
$5.8 billion |
| Source: Screen Digest. |
Other findings in the report:
- Over the past 18 months, the European DVD market (including players and discs) has grown dramatically. Screen Digest estimates that at the end of 1999 there were 1.5 million DVD Video players, by 2003 it is predicted that almost 45 million households across Europe (over 28%) will own some form of DVD player.
- The UK was the fastest growing market with a rise of over 1000% from 23,000 machines in 1998 to 280,000 in 1999.
- Consumer spend on DVDs in western Europe is forecast to rise by 1289% by 2003 to reach $5.8 billion (E5.3 billion). The split of purchase to rental is expected to be 84% to 16%.
- The value of the VHS market is expected to fall by up to 50% by 2003, from a total of $6.1bn (E 5.7 billion) in 1999.
