DVD rentals set record
More than $633.7 mil was spent in first quarter
More than $633.7 million was spent on DVD rentals in the first quarter, a 126% increase from the $280 million in the same quarter last year and a 39% increase from the previous record quarter of $455.8 million in the fourth quarter of 2001.
In the entire year of 2000, when far fewer homes had DVD players, total consumer spending on rentals was $569.8 million.
"The popularity of the DVD format continues to surpass most everyone's expectations," said Brad Hackley, VSDA director of research.
DVD's overall share of the rental market has grown to 29.2%, up from 12.4% a year ago.
But the growth of DVD rental spending in the first quarter did not offset a 22.3% decline in spending on the rental of videocassettes. Overall rental spending of $2.1 billion in the first quarter was off 3.9% from the $2.2 billion spent in the first quarter last year, with VHS revenue down from $1.9 billion to $1.5 billion.
Much of that downturn is attributed to one of the weakest slates of theatrical titles in years during February and March.
