DVDs take on cinemas

1.00pm - By KIM CHISNALL

Rising cinema prices have led to an explosion in the retail DVD market with sales by the country's two main retailers up 40 per cent on last year.

Although New Zealanders lead the world in cinema attendance, escalating prices - as high as $14 a ticket in metropolitan areas - have prompted many to opt for cheaper alternatives.

Figures from the Motion Picture Distributors Association of New Zealand show cinema attendance, while increasing, is doing so at a slower pace. Last year there were 18.3 million tickets sold compared with 17.6 million in 2002 and 16.6 million in 2001.

At the Warehouse and Whitcoulls, DVD sales this year are 40 per cent higher than in 2003, spurred on by a reduction in the cost of DVD players and the price of some DVDs dropping to as low as $9.95. The rental market for DVDs and videos is also growing.

It was worth $130 million last year, $10 million more than in 2002 and quickly approaching the $156 million taken in at the box office last year.

Video Ezy is reporting a 12 per cent increase in DVD rentals, which now make up around 70 per cent of the rental market.

Russell Clark, joint managing director of Video Ezy International, said the arrival of the multiplex theatre had driven people towards DVDs. "There are so many movies being shown at cinemas at the same time. People realise they will never be able to see them all and so choose to see one and watch the others on DVD."

However, Bill Hood, MPDA executive director, disputed any suggestion DVDs could signal the eventual demise of the cinema.

He said the two complemented each other with people going to the big screen first and buying DVD copies of movies they enjoyed.

David Russell of the Consumers' Institute said there were still people who were prepared to pay for the cinema experience.

"They (cinemas) will charge what they think they can get away with. If patronage falls off then expect the price to come down."

- HERALD ON SUNDAY