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Video and online markets

Value to distributors of wholesale sales of video product to retail (sell-through) and rental outlets, 1990–2008

The value of wholesale video distribution has grown by 215 per cent since 1999. After peaking at $1,347.4 million in 2007, it fell by 14 per cent in 2008 to $1,157.5 million.

DVD sales to rental and retail outlets experienced year-on-year growth until 2008 when each market fell 15-16 per cent. In contrast, the value of other formats increased in 2008 due to the growing popularity of Blu-ray, although this emerging format still contributes a comparatively small proportion of combined wholesale sales.

DVD retail remains the most lucrative market for video distributors, with sales growing from $207 million in 2001 to $944.3 million in 2008.

In 2008, sales to retail outlets accounted for 84.2 per cent of all wholesale video sales, while sales to rental outlets made up 15.8 per cent. This contrasts strongly to 1990 when the proportions were 24 per cent to retail and 76 per cent to rental.

Value of wholesale sales of video product

… to retail outlets

… to rental stores

Value of wholesale sales of video product to retail (sell-through) outlets, 1990�
Graph: Value of wholesale sales of video product to rental stores (DVD and other formats share). Table following provides the data.
  Value ($ million) Proportion (%)
DVD Other formats1 Total DVD Other formats1
Retail outlets Rental outlets Retail
outlets
Rental outlets Retail outlets Rental outlets Retail outlets Rental outlets
% change    
2007–2008 -16% -15% 156% 557% -14%      
1990      58.9 188.4 247.3     24% 76%
1991      60.8 186.9 247.7     25% 75%
1992      72.8 177.5 250.3     29% 71%
1993      91.3 177.6 268.9     34% 66%
1994     115.5 198.3 313.8     37% 63%
1995     157.5 227.8 385.3     41% 59%
1996     175.6 237.0 412.6     43% 57%
1997     191.7 207.5 399.2     48% 52%
1998     189.0 206.5 395.5     48% 52%
19992 15.7 2.7 157.0 192.1 367.5 4% 1% 43% 52%
20002 59.5 10.2 163.6 175.5 408.7 15% 2% 40% 43%
2001 207.6 35.5 169.7 177.2 590.0 35% 6% 29% 30%
2002 405.4 97.3 192.4 130.9 826.0 49% 12% 23% 16%
2003 637.6 160.4 104.5 76.1 978.6 65% 16% 11% 8%
2004 853.9 188.6 49.5 33.7 1,125.8 76% 17% 4% 3%
2005 873.9 159.0 9.1 8.4 1,050.5 83% 15% 1% 1%
2006 1,014.3 174.9 3.6 0.5 1,193.3 85% 15% <1% <1%
2007 1,124.3 210.7 11.7 0.7 1,347.4 83% 16% <1% <1%
2008 944.3 178.8 29.9 4.6 1,157.5 82% 15% 3% <1%

 

Source: Australian Visual Software Distributors Association (AVSDA).

Notes:
Figures may not total exactly due to rounding.
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 for 1999 and 2000 are Australian Film Commission estimates; total DVD sales were worth $18.4m in 1999 and $69.6m in 2000.

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