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| DVD CREATIVE PRODUCTION |
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Music DVD sales doubled last year. More than 35 million music DVDs
sold in 2004, up from about 17 million in 2003, and video packages
of all sizes and prices are beginning to compete with Hollywood
movies on the racks at Wal-Mart, Best Buy and Tower.
From Rolling Stone magazine 2/11/05, “Music
Biz Bets on DVDs”
U.S. music video sales are forecast to rise
at an average annual rate of more than 15% leading up to 2010
and grow to nearly $1.26 billion.
From Billboard Magazine 2/19/05, “Music
DVD Sales Gain, But Biz Still Needs Boost”
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The motion picture industry now makes far more from DVDs than from the
box office. Americans spent $9.4 billion at movie theaters in 2004. But
according to the Digital Entertainment Group,
they spent $15.5 billion buying DVDs (up from $12 billion in 2003) and
another $5.7 billion renting them in 2004.As much as 70%-80% of overall profits at many studios
are now attributed to DVD.
From Scott Hettrick of DVD Exclusive
More than $2 billion is spent on original programming
produced exclusively for DVD each year. The $150 million spent on Disney’s
DVD premiere movie “The Lion King 1 ½” is more than
the DVD revenue of any theatrical release this year (2004) and tops
the box-office gross of every film this year except “The Passion
of the Christ.”
From Scott Hettrick of DVD Exclusive
In the five years since complete seasons began rolling out on disc, TV
on DVD has become one of the entertainment industry’s hottest
genres, with sales in 2003 totaling $1.5 billion in studio revenue
and accounting for 15% of the total DVD sell-through market, according
to Adams Media Research.
Merrill Lynch recently
reported that the market segment is expected to grow to $2.3 billion
this year and to $3.9 billion by 2008.
“We think that consumers have shown a great desire for video,” said Paul
Bishow, a vice president in marketing for Universal Music Group. “And
one of the great engines for growth of DVD video is the additional features.
Now you see the beginning of that with music.”
From the New York Times 3/21/05, “The Music Goes on
Side A and the Flip Side Is a DVD”
Dan Hassler-Forest, editor in
chief of the DVD tracker, says, “a disc that has a gazillion
extras will outsell the same disc without those extras, even though
the people buying them don’t watch the added features. It gives
the impression that the new DVD version is a big thing.”
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Studios
have been especially adept at boosting demand by re-releasing DVDs
of earlier films, with more bells and whistles, on the eve of their
sequels’ release. In 2004, examples of this would include: “Spider-Man
2,” “The Bourne Supremacy,” and “Princess
Diaries 2.”
Because of a competitive market, “there
is a growing expectation and demand for special features that
are more special than ever,” says Scott
Hettrick of DVD Exclusive.
For more information about our DVD production
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