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Tuesday, March 08, 2005
DVD Sales to Lead Electronic Entertainment Growth in Europe Reports In-Stat


Sales and rentals of DVD "packaged goods" will be the key growth driver for electronic entertainment in the five largest European countries, with locally produced content representing the fastest growing DVD segment.

Hollywood studios are also reporting strong growth for sales of movie DVDs in the United Kingdom, Germany, France, Italy and Spain.

Consumers in these five major European markets are migrating away from traditional analog broadcasting to digital pay-TV services, but free-to-air digital terrestrial services will show the strongest growth rates, according to In-Stat (http://www.in-stat.com). The number of households receiving digital terrestrial services in these markets will jump from 4.9 million in 2004 to 23.7 million in 2009, the high-tech market research firm says. "New digital delivery services such as digital terrestrial and IP-TV are not likely to supplant the DVD business, but rather bring digital entertainment to people by adding either convenience, mobility, or improved accessibility," said Gerry Kaufhold, In-Stat analyst.

In-Stat has also found the following with regard to Europe:

-- Growth of cable TV will be flat to slightly negative; satellite TV services will pick up about 6 percentage points.

-- Digital terrestrial will grow from about 4.1% of TV households during 2004, up to nearly 20% by 2009.

-- The value of DVD sales and rental markets in the five major European markets was about $9.3 billion (US) during 2004, and will grow to nearly $17 billion (US) in 2009.

The report, "Electronic Entertainment Major Markets In Europe" (#IN0501911CM), provides analysis and forecasts of the number of TV households in each country receiving free-to-air analog TV, cable TV, satellite TV, digital terrestrial TV or broadband (IP) TV. It also provides forecasts for the value of DVD sales and rentals in each country. The report also provides a profile of each country, and a discussion of key electronic entertainment trends in each country. For more information on this report, please visit: http://www.instat.com/catalog/Ccatalogue.asp?id=212 or contact Erin McKeighan at 480-609-4551; emckeighan@reedbusiness.com. The report price is $3,495 (US).


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