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Video and online markets

Average wholesale price per unit of video product sold to retail (sell-through) and rental outlets, 1990–2008

Prior to the growth of DVD retail that began in the late 1990s, the majority of revenue for video product came from the rental market. So as to remain competitive with lower over-the-counter prices of retail video titles, the average wholesale price of titles sold to rental outlest has fallen significantly since 1990. (See Retail sales: Movies by classification.)

In 2008, the average wholesale price of retail and rental DVDs remained comparatively steady when compared to the average price of other formats. The retail and rental prices of other formats rose for the second year, up by 31 per cent and 37 per cent respectively. This reflects the growing popularity of the more expensive Blu-ray format.

  DVD ($) Other formats1 ($)
Retail outlets Rental outlets Retail outlets Rental outlets
% change
2007–2008 -6% 5% 31% 37%
1990     14.26 80.17
1991     13.91 82.33
1992     12.77 80.32
1993     14.49 76.55
1994     16.41 75.11
1995     17.56 71.64
1996     16.57 73.83
1997     16.50 72.05
1998     15.28 64.53
1999 n.a. n.a. 14.56 57.51
2000 n.a. n.a. 14.86 50.58
20012 22.18 26.89 13.73 41.11
2002 21.07 27.41 13.60 38.27
2003 19.82 26.25 11.62 31.71
2004 17.47 21.99 11.99 28.04
2005 15.57 21.18 9.68 20.18
2006 15.63 18.16 10.07 13.89
2007 13.76 16.04 24.02 16.49
2008 12.92 16.82 31.52 22.60

Source: Australian Visual Software Distributors Association (AVSDA), compiled by Screen Australia.

Notes:
1. From 1990 to 2005, this category comprised only the VHS format. In 2006, it was expanded to include the emerging digital formats UMD, Blu-ray and HD Combined.
2. Breakdown of DVD sales to retail and rental outlets did not become available until 2001.

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