| KN92102 |
| KEY NOTE Video Retail & Hire : June 2002 |
|
|
CLICK
 TO BUY |
This report covers: video retail, video hire, blank videos, entertainment software, compact discs, audio cassettes, purchase of videos, rental of videos, computer games, blockbuster films, DVDs, VCs, themes, digital versatile disc, video-on-demand, VoD
Companies covered include: BBC Worldwide, Warner Home Video (UK), Buena Vista Home Entertainment, Twentieth Century Fox Home Entertainment, Columbia Pictures Video, Video Collection International, Carlton Video, Woolworths, HMV Media Group, WH Smith, Blockbuster Entertainment, Global Video, Apollo Film Hire,
EXECUTIVE SUMMARY
In 2001, the UK market for video and DVD (digital versatile discs) retail and hire was valued at £2.14bn, an increase of 23.4 percent on the total of £1.73bn in 2000. With the exception of 1999, which saw a market decline, the market experienced growth between 1998 and 2001. This was started by the unusually successful releases of 1998, `Titanic' and `The Full Monty', but continued in 2000 as a result of the introduction of DVDs in both the retail and hire sectors.
Video and DVD retail is still the largest sector of the market. It consolidated this position in 2000 and 2001. Video and DVD retail's market share increased to 69.6 percent in 2001, from 60 percent in 1998 and 1999. However, the video and DVD hire and blank recordable media sectors have also grown.
The increase in consumers' disposable income during the late 1990s - unaffected even by the economic downturn in 2001 - is likely to have assisted the video and DVD retail and hire market. This, combined with aggressive promotion of the new DVD format, has helped to boost sales. However, there are concerns about the effect of the proliferation of digital means of recording and distributing videos and DVDs on long-term market growth. Digital means of recording include the Internet, writeable CDs (compact discs) and DVDs. Piracy is likely to benefit from this, just as the legal market has. Although at the time this report was published (June 2002) there had been no discernible effect on revenues, proposed legislation seeks to avoid the possibility of increased piracy by raising the penalties for lawbreakers.
Other significant developments in the industry since 2000 include increased revenue sharing between the leading video and DVD-hire multiples and the Hollywood studios. This is where a rental company shares the revenue on each film hiring with the film studio, rather than paying the film studio for a certain number of copies of each film. It is accompanied by increased numbers of copies of individual releases, as well as a shake-up in the studio system itself. In the retail sector, prices have dropped as competition has increased, with low costs in online retail allowing the most substantial competition.The market is forecast to keep increasing over the period to 2006, although its rate of growth is likely to slow by 2003. DVD hardware penetration will increase for a number of years, driving this subsector. VHS sales will start to slow more dramatically, removing the support of one strong revenue stream. This will lead to a more volatile growth rate in the retail market than in the hire market, in which DVD developed slightly later, and where the transition will be smoother. The recordable media market will pick up when writeable DVDs and DVD recorders become affordable, around 2004.
TABLE OF CONTENTS
| Executive Summary | 1 |
| 1. Market Definition | 2 |
| REPORT COVERAGE | 2 |
| MARKET SECTORS | 2 |
| MARKET TRENDS | 3 |
| Electronic Retailing | 3 |
| Home Viewing | 4 |
| Consumer Spending | 4 |
| Table 1: Average Weekly Household Expenditure on Selected Leisure Goods (£), 1998/1999 and 2000/2001 | 5 |
| MARKET POSITION | 5 |
| The UK | 5 |
| Table 2: Expenditure on Recreational and Cultural Goods and Services as a Proportion of Total Consumer Expenditure (£bn and percent), 1997-2001 | 6 |
| Table 3: Expenditure on Recording Media as a Proportion of Expenditure on Leisure Goods and Services (£m and percent), 1997-2001 | 7 |
| Overseas | 7 |
| 2. Market Size | 9 |
| THE TOTAL MARKET | 9 |
| Table 4: The Total Market for Video and DVD Software by Sector by Value (£m and percent), 1997-2001 | 10 |
| BY MARKET SECTOR | 10 |
| Video and DVD Retail | 10 |
| Table 5: The Video and DVD Retail Market by Value, by Volume and by Average Price Per Unit (£m, million units and £), 1997-2001 | 11 |
| By Theme | 11 |
| Table 6: Breakdown of Videos and DVDs Bought by Theme by Volume ( percent), 2000 and 2001 | 12 |
| Table 7: Breakdown of Videos and DVDs Bought by Theme and Sector by Volume ( percent), 2001 | 12 |
| Video and DVD Hire | 13 |
| Table 8: The Specialist Video and DVD Hire Market by Value, by Volume and by Average Price Per Unit (£m, million units and £), 1997-2001 | 14 |
| By Genre | 14 |
| Table 9: Breakdown of Hired Videos and DVDs by Genre ( percent), 2000 and 2001 | 15 |
| Blank Recordable Media | 15 |
| Table 10: The Blank Video Cassette Market by Value, by Volume and by Average Price Per Unit (£m, million units and £), 1997-2001 | 16 |
| OVERSEAS TRADE | 16 |
| Imports | 17 |
| Table 11: Imports of Recordable Magnetic Tape Over 6.5mm Wide by Value and by Volume (£m and million kg), 2000 | 17 |
| Exports | 17 |
| Table 12: Exports of Recordable Magnetic Tape Over 6.5mm Wide by Value and by Volume (£m and million kg), 2000 | 17 |
| 3. Industry Background | 18 |
| RECENT HISTORY | 18 |
| Number of Companies | 19 |
| EMPLOYMENT | 20 |
| REGIONAL VARIATIONS IN THE MARKETPLACE | 20 |
| Table 13: Retail Sales of VHS and DVD by Region ( percent), 2001 | 21 |
| PRODUCTION AND DISTRIBUTION | 21 |
| HOW ROBUST IS THE MARKET? | 22 |
| LEGISLATION | 23 |
| The Copyright, etc. and Trade Marks (Offences and Enforcement) Bill | 23 |
| KEY TRADE ASSOCIATIONS | 23 |
| British Video Association | 23 |
| Entertainment Software Retailers Association | 24 |
| Federation Against Copyright Theft | 24 |
| International Video Federation | 24 |
| Video Standards Council | 24 |
| Other Organisations | 24 |
| The British Board of Film Classification | 25 |
| British Film Institute | 25 |
| British Screen Advisory Council | 25 |
| The Film Council | 25 |
| 4. Competitor Analysis | |
| THE MARKETPLACE | 26 |
| MARKET LEADERS | 27 |
| Video and DVD Distribution | 27 |
| Table 14: Selected Leading Video and DVD Distributors in the UK by Turnover and by Pre-Tax Profit (£m), 2001 | 27 |
| BBC Worldwide Ltd | 28 |
| Buena Vista Home Entertainment Ltd | 29 |
| Carlton Visual Entertainment Ltd | 29 |
| Columbia Pictures Video Ltd | 30 |
| Twentieth Century Fox Home Entertainment Ltd | 30 |
| Universal Pictures International Ltd | 31 |
| Video Collection International Ltd | 31 |
| Warner Home Video (UK) Ltd | 32 |
| Video and DVD Retail | 32 |
| Table 15: Leaders in the Video and DVD Retail Sector by Market Share by Volume ( percent), 1999 and 2001 | 33 |
| Table 16: Leaders in the Video and DVD Retail Sector by Market Share by Subsector by Volume ( percent), 2001 | 34 |
| ASDA Group Ltd | 34 |
| HMV Group PLC | 35 |
| Tesco PLC | 35 |
| WH Smith PLC | 35 |
| Woolworths PLC | 36 |
| Video and DVD Hire | 36 |
| Table 17: Leaders in the Video and DVD Hire Sector by Market Share by Volume ( percent), 2000 and 2001 | 37 |
| Apollo Film Rental Ltd | 37 |
| Blockbuster Entertainment Ltd | 38 |
| Global Video Ltd | 39 |
| OUTSIDE SUPPLIERS | 39 |
| Post-Production Processes | 39 |
| Shopfitters | 40 |
| Plastics Packaging | 41 |
| ADVERTISING AND PROMOTION | 41 |
| Table 18: Main Media Advertising Expenditure by Record and Video and DVD Stores (£000), Years Ending March 2000-2002 | 42 |
| Table 19: Main Media Advertising Expenditure by Online Video and Music Stores (£000), Years Ending March 2000-2002 | 42 |
| 5. Strengths, Weaknesses, Opportunities and Threats | |
| Strengths | 43 |
| Weaknesses | 43 |
| Opportunities | 44 |
| Threats | 44 |
| 6. Buying Behaviour | |
| HARDWARE PENETRATION | 46 |
| Table 20: Penetration of Ownership of Video Cassette Recorders and DVD Players ( percent of adults), 1999-2001 | 47 |
| SOFTWARE PENETRATION | 47 |
| Table 21: Annual Purchasing of Pre-Recorded DVDs ( percent of adults), 2001 | 48 |
| Table 22: Annual Purchasing of Pre-Recorded Video Cassettes ( percent of adults), 1998-2001 | 48 |
| CONSUMER PENETRATION | 49 |
| Video and DVD Retail | 49 |
| Table 23: Penetration for Purchasing of VHS Cassettes and DVDs by Sex, Age and Social Grade ( percent of adults), 2001 | 49 |
| Mail Order | 50 |
| Table 24: Penetration for Purchasing of VHS and DVDs Through Mail Order by Sex, Age and Social Grade ( percent of adults), 2001 | 50 |
| Electronic Retailing | 52 |
| Table 25: Penetration for Purchasing of VHS and DVDs Via the Internet by Sex, Age and Social Grade ( percent of adults), 2001 | 52 |
| Video and DVD Hire | 53 |
| Table 26: Rental of Pre-Recorded VHS Cassettes by Frequency ( percent of adults), 1998, 2000 and 2001 | 53 |
| Table 27: Rental of Pre-Recorded DVDs by Frequency ( percent of adults), 2001 | 53 |
| VIEWING PATTERNS | 54 |
| Table 28: Hours Spent Watching Pre-Recorded Videos and DVDs per Week ( percent of adults), 1998, 2000 and 2001 | 54 |
| Table 29: Hours Spent Watching Self-Taped Programmes per Week ( percent of adults), 1998, 2000 and 2001 | 55 |
| 7. Current Issues | |
| THE DVD FORMAT | 56 |
| VIDEO-ON-DEMAND | 57 |
| PIRACY | 58 |
| 8. The Global Market | |
| The US | 59 |
| EUROPe | 59 |
| ASIA-PACIFIC | 60 |
| Japan | 60 |
| China | 60 |
| 9. Forecasts | |
| INTRODUCTION | 62 |
| FORECASTS 2002 TO 2006 | 62 |
| Table 30: The Forecast Market for Video and DVD Software by Sector by Value (£m), 2002-2006 | 63 |
| FUTURE TRENDS | 63 |
| Demographic Patterns | 63 |
| Table 31: The UK Population by Age Group (000), 2001, 2006 and 2011 | 64 |
| New Technologies | 64 |
| The Future of Electronic Retailing | 65 |
| 10. Company Profiles | |
| BBC Worldwide Ltd | 67 |
| Blockbuster Entertainment Ltd | 69 |
| Global Video Ltd | 71 |
| HMV Group PLC | 73 |
| Universal Pictures International Ltd | 75 |
| Warner Home Video (UK) Ltd | 77 |
| Woolworths PLC | 79 |
| 11. Further Sources | |
| Associations | 81 |
| Publications | 83 |
| Directories | 84 |
| General Sources | 84 |
| Bonnier Information Sources | 85 |
| Government Publications | 86 |
| Other Sources | 87 |
| Understanding TGI Data | 89 |
| Number, Profile, Penetration | 89 |
| Social Grade | 90 |
| Standard Region | 90 |
| Key Note Research | |
| The Key Note Range of Reports |
Text © 2002 Key Note
| Can't find what you
need? Try our "Research on Request" market report service and define your own report research! Fixed prices - £150, £450 and £1,250 - and fixed delivery of 4, 5 and 14 days |
| Click here for full details |
Ariadne - working together with our customers
to enhance productivity and increase knowledge
© 2004
www.the-list.co.uk Ariadne
Last updated by Amanda Porteous February 2004
