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Film, TV and Video Distribution Trends

A variety of new content delivery options for the home are creating tumultuous times for the movie industry, reports In-Stat. While standard definition DVD sales are still going well, that market is likely nearing its peak. What�s more, it�s unclear how alternative delivery systems will impact the changing home entertainment landscape and DVD sales.

"The migration to next-generation High Definition optical disc formats is not going smoothly," says Gerry Kaufhold, In-Stat analyst. "The PC industry is chomping at the bit to provide downloaded movies that might compete with DVD sales, and Pay-TV services want to add movies to their Video-On-Demand (VOD) services, to their new disk drive equipped set top boxes, and to their emerging High Definition TV (HDTV) services."

In-Stat found the following:

- By 2009, In-Stat forecasts a worldwide retail value of US$50 Billion for annual sales of Hollywood video content sold at retail.
- By 2009, 41 percent of US TV Households will be watching movies on HDTV displays.
- DVD players that support HDMI deliver High Definition quality today, so next-generation High Definition optical products will need to provide "something more".
- Over 40 percent of Japanese households will have wide-screen HDTV sets by 2009, and Europe and other Asian markets are already seeing robust sales of HDTV displays.
- Portable player products and online download services are likely to lead industry growth, especially in Europe and Asia.
- The bulk of the Hollywood movie and TV show DVD market value comes from just six countries: Japan, the United States, Canada, the UK, France and Germany.
- The intense media interest in next-generation optical disc formats is selling lots of magazines, but will not have much impact on the Hollywood "packaged goods" business until late in the decade.

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