WebProNews

Even with competition from Internet-based movie services, cable and satellite on- demand, and digital cinema, the DVD continues to attract most of the consumer spending on movies, according to the 2007 Annual Report on the Home Entertainment Industry out today.

The report says consumers spent $23 billion on DVD purchases and rental in 2006, compared to $9.5 billion in box office revenue and $982 million for Internet, cable, and satellite on-demand.

"While consumers are viewing filmed entertainment through an increasing variety of devices and services, they remain loyal to DVD," declared Bo Andersen, President of the Entertainment Merchants Association (EMA).

"DVD will continue to be the most popular way for the public to view movies for the foreseeable future, and we expect high-definition discs to become the dominant home video format within five years."

The report, citing Adams Media Research, also found that multi-line mass merchants continue to control the DVD sales market, with a 43 percent market share, while consumer electronics retailers have 16 percent of the market and online retailers have 12.5 percent.

In the rental market publicly traded video rental chains account for 42 percent of the market other video stores have 39 percent and online rental services now have a market share of 16 percent.