LONDON — Consumer spending on video software in Western Europe will rise from €11.1 billion ($11.1 billion) in 2002 to $18.4 billion in 2006, according to a report from Screen Digest.
DVD sales will generate $5.2 billion in 2002, growing to $15.3 billion in 2006, or 85% of total video spending.
Screen Digest’s report, “European Video: Market Assessment & Forecasts 2001-2006,” suggests that the value of DVD sales will overtake VHS in 2003, but it will take until 2005 for DVD rental sales to catch up with VHS.
“The availability of affordably priced DVD video players across most European markets has been a major factor in consumers’ rapid take-up of DVD,” writes the report’s author, John Miller. “By 2003, almost 50 million Western European households will have acquired at least one stand-alone DVD video player.”
He predicts that number will increase to over 100 million by 2006, or 62% of all TV homes. That doesn’t include an extra 25 million DVD-based game consoles.
At this rate, DVD players will take just eight years to reach the level of penetration attained by VCRs after 20 years.