TV-on-DVD Titles Continue to Increase in Popularity, Sales

US

NPD Group: Ever since the first season of "The X-Files" was released on DVD almost five years ago, TV shows have become an important revenue category for studios and retailers alike. In fact , TV-on-DVD unit sales increased by 24 percent in the six months ending March 2005 compared with the same time period in 2003/2004. TV-on-DVD now accounts for six percent of unit and 10 percent of dollar sales for the industry. There are currently more than 4,000 TV-on-DVD titles available for purchase, in addition to the over 5,000 available on VHS. When the subject of DVDs comes up, most people automatically think of recently released movies. That mindset might be changing, since television titles are increasingly becoming the foundation of many consumers’ DVD collections.”

Consumers are flocking to TV-on-DVD despite the frequent premium prices commanded by the collections. The average price of TV-on-DVD titles was $28.32, while the average price of all titles was $16.49; however, NPD noted that prices for TV-on-DVD titles have been falling at double digit rates (the average selling price declined 14 percent in the six month period ending March 2005 versus the same timeframe in 2004).

Consumers clearly see value in the collectible nature and nostalgia offered by the TV-on-DVD genre. In fact, half of all buyers felt that the price they paid was “excellent” or “very good.” TV-on-DVD is joining gift cards as a popular gift option: one-third of TV-on-DVD units were purchased to be given as a gift during the past six months, and the level was even higher during the 2004 holiday season -- reaching 54 percent in December.

“The TV-on-DVD genre represents a perfect packaging for video marketers and retailers,. There’s a tremendous library of content, with great emotional and nostalgic value that appeals to video collectors, provides a platform for bonus content and can command a premium price. On top of that, consumers also view TV-on-DVD as a wonderful gift-giving category.”

VideoWatch tracking service Publ 20050602