MARKET DATA
As the market for optical media matures, the growth of DVDs has reached a near-breathtaking pace. While CD sales have dropped by nearly 10%" since 2002, sales of DVDs have more than doubled over the same period, according to IRMA the International Recording Media Association.
Furthermore, with DVD players becoming almost as commonplace as telephones and televisions, the market for DVDs is expected to continue to experience dramatic growth for many years to come! In fact, by the 2004 Christmas season, entry-level DVD players are widely expected to be available throughout North America for less than $50.
| "Adams Media Research predicts that DVD players will be in 91%" of North American homes by the year 2008" |
Television and cinematic content represent, by far, the strongest segment of the DVD market today. Blockbuster movies and collector sets containing a years worth of popular television series episodes have created a market with an anticipated value, according to Microsoft, in excess of $63 BILLION US. Unlike any media that has come before it, DVDs have benefited from a new phenomenon, namely consumers seeking to build a personal DVD library. This is partly a factor of the widespread penetration of DVDs into retail channels, but mostly attributed to the longevity of the DVD – with virtually no image or quality degradation, regardless of the number of times the DVD is played.
"Consumer acquisition of DVDs remains strong, with average annual purchases of 16 discs per household. However, as the number of households with multiple players continues to rise, consumers are buying as many as 24 discs per year. Furthermore, it is expected that the average annual purchases of DVDs will increase in 2004 due to the declining price of discs at retail." |
TBS will also benefit from this trend, providing easy and affordable access to a wide range of titles featuring well-known stars. |
