Up until the last quarter of 2001, video cassette recorders were the dominant form of video-watching equipment at home. As digital equipment becomes more and more the standard, replacing now ever increasing antiquated analog machines, DVD players have for the first time taken the lead in sales over VCRs.
DVDs continue their momentum in taking a place in one-third of homes across America, and outselling VCRs for the first time in their four-year existence. According to the Consumer Electronics Association, during the last quarter of 2001, DVD sales surpassed VCR sales for the second consecutive month. VCR sales totaled 1,126,475, falling 389,736 units shy of the DVD sum.
Since the introduction of the DVD format, in March of 1997, stand-alone DVD players, portable DVD players, and DVD-ROM equipped computers have carried the DVD medium to record sales. According to the CEA, DVD players have become the fastest growing consumer electronic device of all time in the United States. Even when numbers indicate a temporary decrease in DVD sales, Sean Wargo, senior industry analyst for CEA, said, “In spite of the slight decrease, the growth maintained by DVD players and other products are proof that consumers are still embracing digital technologies. The long-term outlook for the industry remains strong.”
The CEA also said that the popularity and growth established by the conventional stand-alone DVD players has spurred consumer interest in other DVD products like home theaters-in-a-box with DVD.
According to BBC news, DVD players have also become the fastest growing consumer entertainment product of all time in Great Britain, since DVDs were introduction into Great Britain in 1998.
Ever-increasing affordability, the creation of DVD-ROMs for computers, and the unmistakable high-quality video and sound reproduction were the leading reasons why DVD players rose quickly in demand.
“Month after month we continue to see consumer preference for digital products and we attribute this to the superior audio, video and often interactive qualities of the digital medium,” Wargo said.
The incredible amount of storage space also allows DVDs to offer special features like language options and various production enhancements not found on conventional VHS tapes. The CD-like format of DVDs allows storage of over 17 gigabytes of information, using both sides. This immense storage ability and compatibility has made the format especially popular with computer users.
While first generation DVD players sold for between $450 and $5,500, some players dropped to below $200 last year. This drop in cost opened up the market to mainstream consumers. The summer of 2001 proved new numbers for usually low sales season.
“June and the summer months are traditionally the lowest sales points of the year, but with more affordable digital products on the market, such as lower prices for both DVD players and DTV models, consumers are seizing the opportunity to create their own digital entertainment experiences,” said Gary Shapiro, president and CEO of CEA. “As more consumers come in contact with digital video products, we can only expect sales to increase continually.” August 2001 ended by marking 40 consecutive months that DVD players sales posted gains.
The DVD Ownership and Market Potential survey finds that interest in owning DVD players and related technology is remarkably high among current non-owners. Seventy-three percent of all non-owners state that they have a strong interest in owning some form of DVD technology, and 46 percent of non-owners say that they plan to obtain DVD technology in the next year.
The largest contributing factor in the rapid adoption of DVD appears to be word-of-mouth recommendations from satisfied current owners. The survey finds 94 percent of DVD owners are satisfied with their player and are telling others.
“Consumers are enthusiastically participating in the transition to digital video and the long-term outlook is very strong. Despite consumer concerns about the economy, interest in video is still very high and strong sales of DVD and DTV products are proof that the industry will post solid growth in the long run,” Shapiro said.
