DVD players get cheaper as disc sales continue to climb

Booming DVD sales in New Zealand are bringing the price of players down, prompting sales to rise further.

The "virtuous circle" of price falls and sales rises is about 18 months behind the United States, but trends are the same, said Carmel Bennett, a spokeswoman for Roadshow, the DVD recording wholesaler.

"It's similar to the change from vinyl records to CDs, but it's happening twice as quick."

Sales of DVD recordings in the United States jumped 17 per cent to US$11.6 billion ($21.8 billion) last year. DVDs now account for 57 per cent of the US home-video business, whose revenue is twice that of the country's cinemas.

American producers shipped 685 million DVDs last year, twice the number shipped in 2001 and more than all those sold in the previous five years.

DVDs now make up about 30 per cent of New Zealand video rentals.

Video Ezy, which has 137 stores in its national chain, is finding that DVDs make up almost 50 per cent of rentals in many of its main-centre stores.

From November 2001 to November last year, DVD rentals rose an average of 150 per cent per store, said Video Ezy operations manager Chris Osborne.

Sales of DVDs, as distinct from rentals, are also rising quickly, despite DVDs having a recommended retail price of $39.95, compared with $29.95 for videotapes.

Sales of players also surged, said David Wilson, general manager of The Warehouse's New Zealand arm.

The chain finds music DVDs especially popular. They cost $35, compared with $25 for a CD, but come with a video to watch.

The Warehouse is giving DVDs extra space at the expense of videotapes.

Pacific Retail Group's general manager (retail), John Milford, said tremendous growth continued in DVD. Eighteen months ago players were $700 or $800. Now the cheapest are $200 to $300.

There is a related boom in home theatre systems - DVD players with four to eight external speakers.

Eighteen months ago prices started about $1500. A good one now costs $1000.

Experts predict a second wave of interest as DVD player-recorders come down in price. These allow viewers to record on to their own DVDs, and can replace the home VCR.

Recordable DVD players sold for about $4000 when they came on the market a year ago. They now cost around $2000.

- NZPA