Okay, explain this one to me...

[dbminter]

From:

 

http://www.afterdawn.com/news/archive/7241.cfm

 

 

Consumer spending on DVDs falls while disc sales rise

 

23 January 2006 14:35 by Dela

Overall consumer spending on DVDs fell in 2005 despite the amount of discs sold being higher than it ever was. According to the report in the trade journal Screen Digest, average European DVD consumer prices fell by more than 11% in 2005 to just under ?15. Price reductions put spending down by 1.7% even though more than 732 million discs were sold during the year. Paul Callaghan, Screen Digest analyst, said VHS tapes were likely to die out completely in Europe by 2008, leaving more room for DVD sales growth, although it would be slower than before.

 

The report, entitled European Video - Market Assessment and Forecast to 2009, found that 60% of Western European homes owned a DVD player or a DVD recorder but in Central and Eastern Europe, there is room for growth as just 12% of TV households have a DVD player. Overall, spending on DVD rentals are thought to have reached about ?2.2bn. The report covered 22 countries in detail.

 

The report suggest that, despite growth in other parts of the continent, the majority of spending on DVDs occurred in the more affluent countries in Western Europe. Three quarters of DVD consumer spending took place in UK, France, Germany, Italy and Spain, the continent's five largest video markets.

 

 

So, HOW can spending on DVD's fall in 2005, BUT the number of discs that were sold is HIGHER than it ever was? Unless they're counting individual discs in boxed sets in sales, which is easily explained by the saturation of the market of TV DVD boxed sets.

[blutach]

I think what they're saying db is that volume was up by about 9% but prices, on average, fell by 11% making total revenue down by a couple of %.

 

Regards

[dbminter]

I was hoping for a stupid, legalese reason, like this line from Leno's Headline's Monday. From the instruction manual of a cooking pot: "Do not use this product for any purpose."

[chewy]

Unless they're counting individual discs in boxed sets in sales, which is easily explained by the saturation of the market of TV DVD boxed sets.

 

good example, I ordered the kung fu season 3 from amazon,

4 dual layer flipper disks(dvd-18's) = 8 disk set

30$, authoring probably costs a few thousand, production less than 1$

a disk!