Television on DVD (TV DVD) is set to become a new high-growth category, according to a new report, with many US programmes hoping to make a successful transition in to this market, similar to that made by hit-shows Friends and the X-files.
According to investment bank, Merrill Lynch, consumer spending on TV DVD is expected to hit $2.3 billion in the US this year, with phenomenal growth of 30% predicted for each year to 2008.
The number of DVD households is a key driver in the success of the TV DVD market and Merrill Lynch has predicted that by 2008 an estimated 89% of US homes will own a DVD player, compared to 64% by the end of 2004. Currently, DVD owners buy around two television related discs a year and this is expected to stay constant over the next few years.
However, this market doesn’t go unchallenged, it is very easy for this market to get cluttered, as a number of studios put their productions on to DVD in the hope of finding an additional income stream. In 2003 there were 550 TV DVD titles released and during the first six months of this year, over 500 have already been released, with only 18 titles selling having sold greater than 100,000 units.
Merrill Lynch said: “In our view, TV shows on DVD will be a significant contributor to studio growth domestically for at least the next three years. Considering that international markets comprise at least half of theatrical film revenue today, we believe TV DVDs will be a growth platform overseas for the next five years as DVD penetration increases.”
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