Modest growth forecast for Australasian DVD

A UK consultancy is tipping that Australasian DVD market will finish the year comfortably ahead of 2007.

In its November edition, Screen Digest analyses the world DVD market, focusing primarily on the 2007 performance.

However, the company has also done a bit of crystal ball gazing and predicts the combined Australia and New Zealand markets to record growth of around 8 percent for the full year.

While that is down on last year’s double digital growth, Screen Digest estimates the markets will still be worth US$2.3 billion in 2008.

The consultancy also notes that the combined Australian and New Zealand hardware market boasted one of the highest rates of DVD penetration in the world and by end of 2007 almost 90 percent of homes had a DVD player. The player base in this part of the world is higher than the US (84 per cent), UK (86 percent) and Japan (54 percent).

All told, Screen Digest expects the number of DVD households in Asia-Pacific to reach 171 million this year, with total consumer spending on video software forecast to grow 3 percent to US$9.7 billion in 2008.

As far as the global picture is concerned, Screen Digest is tipping worldwide video spending on retail and rental to hold steady in 2008 at US$36 billion and US$17.1 billion respectively.

However, the report is more cautious about whether rental will prove to be recession proof in the current economic meltdown.

“Historically, the video rental business has benefitted from economic hardship as a cheaper alternative to video retail, and indeed other forms of entertainment,” Screen Digest notes.

“However, the steady erosion of retail DVD prices in recent years has reduced the gap between the cost of buying and renting. Moreover, consumers might consider ownership more cost-effective as this allows for repeated viewings.”

Source: http://dvdindustry.com.au/Rental_feat.php?goto=1632&v=1#top

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