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DVD Disc Sales Value Slows, But New Technologies Will Spur International Growth

DUBLIN, Ireland – Research and Markets has announced the addition of The Changing Face of Studio Video Sales: Grow New Markets, Push High Definition, Get Interactive to their offering.

The major Hollywood studios are facing a changing landscape for the consumption of their home video products.

Sony Corporation is “betting the farm” on High Definition TV and HDTV products, including the next-generation Blu-Ray disc format. Sony’s strategy may be strong enough to drive them into a dominating position for the future of digital home entertainment, and the other major Hollywood studios may simply be along for the ride.

Microsoft and Intel are also lobbying strongly to play a part, with their Connected Digital Home solutions. Microsoft and Intel have voiced strong support for HD-DVD.

Nobody can be sure how it is all going to play out. By 2009, the forecast model predicts a worldwide retail value of US$ 50 Billion, with a Compound Annual Growth Rate of 5.4% for annual sales value of Hollywood Video Content sold at retail. The DVD value will hold its own but much of the growth will be due to:

  • Portable Player products
  • Next-Generation optical discs
  • Movie & TV Downloads

It is expected that the three alternative delivery formats to gain momentum in 2006, and continue growing through 2009. The coming few years will be very interesting ones for the Hollywood studios.

The Changing Face of Studio Video Sales: Grow New Markets, Push High Definition, Get Interactive found the following:

  • By 2009, a worldwide retail value of US$50 Billion is forecasted for annual sales of Hollywood video content sold at retail.
  • By 2009, 41% of US TV Households will be watching movies on HDTV displays.
  • DVD players that support HDMI deliver High Definition quality today, so next-generation High Definition optical products will need to provide “something more”.
  • Over 40% of Japanese households will have wide-screen HDTV sets by 2009, and Europe and other Asian markets are already seeing robust sales of HDTV displays.
  • Portable player products and online download services are likely to lead industry growth, especially in Europe and Asia.
  • The bulk of the Hollywood movie and TV show DVD market value comes from just six countries: Japan, the United States, Canada, the UK, France and Germany.
  • The intense media interest in next-generation optical disc formats is selling lots of magazines, but will not have much impact on the Hollywood “packaged goods” business until late in the decade.

The Changing Face of Studio Video Sales: Grow New Markets, Push High Definition, Get Interactive covers the market for movie studio video sales. It includes analysis of technology and market trends for the number of TV Households, by region, that have at least one wide-screen HDTV-capable video display. The report also forecasts annual retail sales of Hollywood video products by category and by region through 2009. Profiles of major players in the home video industry are also provided.

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