29/01/2003

The DVD or "digital versatile disc" first hit French consumers when the Montparnasse publishing company released Microcosmos and Les Enfants de Lumière. All it took was five short years for this high quality revolutionary format to shoot to the top of the home video market. 2002 was the year when DVD overtook VHS with 40m units sold against just 28m of the videotape format. This exponential growth went hand-in-hand with an equally rapid increase in the number of available titles : currently 6000 films can be accessed in DVD. According to recent data published by the International Video Federation, the French proliferation is a true reflection of what is happening elsewhere in Europe where more than 122million DVD units worth an estimated Euros3b were sold in 2001 (compared to a total expenditure for this format in 2000 of Euros 1.4b). This upward trend appears to be limited to France, Germany and the United Kingdom where fully 65 per cent of all European DVD sales took place.
The most significant aspect of this phenomenal market penetration is the speed with which DVD captivated consumers and became one of the most popular products ever. Initially considered a luxury item for film fans hungry for the last cry in technology, DVD soon reached the masses. In January 2003, almost a quarter of all French households owned a DVD player ; a market penetration that is 2.5 per cent higher than that reported for CD players five years after they first became available. There is still the potential for expansion given that 80 per cent of all French households that have TV sets also own a VHS player.
According to Yves Caillaud, the president of the Video Publishers’ Guild (SEV), the popularity of the DVD format is largely due to the relatively low cost of players (they start at around Euros100) and of the discs themselves (between Euros20 and Euros30). However, it is important to view this market from a wider perspective: that of the global film industry. Around 50 per cent of all revenue for Hollywood productions is generated by the home video market (and mainly DVD). This sector generates more cash than theatrical distribution, the sale of TV broadcasting rights and other forms of commercialisation. As for other sectors, Europe is fast following in the USA’s footsteps. In France, Germany and the United Kingdom, revenue from video sales and rentals is higher than theatrical box office takings. In France, for example, the total theatrical box office take in 2001 was Euros1b while that for the home video market was estimated at Euros 1.4b. A trend which has to be carefully monitored and is also a source of worry to some.