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Rise of the DVD Economy

Posted By Barry Ritholtz On May 10, 2005 @ 10:20 pm In Film | Comments Disabled

Lens [1]We’ve previously discussed how DVD sales have been booming [2], cannibalizing CD sales [3], and wreaking some creative destruction [4]

So you can imagine our joy at finding yet more detailed data showing just that. And to add a little sparkle, its from the author [5] of the book, "The Big Picture [1]."

Ironic, no?

William Safire describes the book: "In The Big Picture: The New Logic of Money and Power in Hollywood [1], the investigative author Edward Jay Epstein holds that what used to be the movie business, centered in "movie houses," has been transformed into the home-entertainment business." That transformation, in a nutshell, is the key to understanding the New Hollywood.

Interesting description. It lends further significance to his thesis of "The Rise of the Home Entertainment Economy," and these three tables of data:


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Studio Revenues Worldwide, 1948-2003                        
Table 1 Worldwide Studio Receipts

Year

Theater
Video/DVD
Pay-TV
TV,
Free
Total
Theater
Share (%)
1948
6.9
0
0
0
6.9
100
1980
4.4
.2
.38
3.26
8.31
55
1985
2.96
2.34
1.04
5.59
11.9
25
1990
4.9
5.87
1.62
7.41
19.79
22
1995
5.57
10.6
2.34
7.92
26.53
20
2000
5.87
11.67
3.12
10.75
31.41
19.5
2003
7.48
18.9
5.56
11.4
41.2
17.9

Note:  All Dollars are Inflation-Adjusted, baseline 2003 Dollars  (in Billions)



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The Rise of DVDs
Table 2 Global Home Video Sales
DVD & VHS Studio receipts (Billions of dollars)

ear DVD VHS Total
1993 0 $5.93 $5.93
1997 0 $9.8 $9.8
2002 $10.39 $5.929 $16.323
2003 $14.9 $3.9906 $18.902



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Foreign Home Video Markets
Table 3: Studio receipts, 2003 (millions of dollars)

Country DVD VHS Total
Britain 504 1,223 1,727
Japan 720 332 1,052
France 693 183 876
Canada 566 183 749
Germany 576 120 696
Australia 325 88 413
Spain 303 103 405
Italy 174 124 298
Holland 191 48 239
Mexico 97 52 149


Top10

4,148 2,460 6,608
All Foreign 5,522 2,146 7,668


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Quite fascinating . . .


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2005/05/rise-of-the-dvd-economy/

URLs in this post:

[1] Image: http://www.amazon.com/exec/obidos/ASIN/1400063531/thebigpictu09-20

[2] booming: http://bigpicture.typepad.com/comments/2005/02/dvd_sales_boom.html

[3] cannibalizing CD sales: http://bigpicture.typepad.com/comments/2004/03/cd_no_dvd.html

[4] creative destruction: http://bigpicture.typepad.com/comments/2004/10/music_sales_reb.html

[5] author: http://www.edwardjayepstein.com/

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