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Consumer Spending on DVDs Still Declining

Consumer spending on video purchases fell 4.3 percent in the first quarter 2006 compared with last year, while rental spending also lagged 4.4 percent, according to preliminary estimates by Home Media Retailing.

Home Media Retailing market research shows that total consumers spent $4.3 billion on purchases and $1.98 billion on rentals in the quarter, down 4.4 percent from the $6.36 billion consumers spent on purchases and rentals combined in first-quarter 2005. Home Media Retailing's market research department estimates a final tally of consumer spending through the end of February puts spending at $2.3 billion, down 13.1 percent from the $2.65 billion that was spent in the first two months of last year.

For those two months, the combined boxoffice strength of new theatrical films released on DVD was $1.24 billion, 10.1 percent less than the theatrical gross of January and February 2005 DVD releases. Statistics for the quarter also show a dramatic slowdown in the number of new DVDs coming to market.

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