Film and video industries defy the credit crunch to post record performances

New figures reveal that the film and home entertainment industry is experiencing record sales as the British public opt for a cosy night in with a video or a trip to the cinema to beat the economic blues.

British Video Association today announced an unprecedented 51.7m in DVD sales to the end of September, the UK’s best ever third quarter performance, up 6.5% on that of 2007.

This September alone was a record bumper month with total video sales up a whopping 7.4% on the same month last year. This took sales to the end of September 2008 up to 161.8 million DVDs and 164.2 million units if all other formats are included.

The UK cinema industry has also seen its best performance in 40 years, with the Cinema Exhibitors’ Association announcing total admissions for the months of June to August this year at 53.6 million. This is a 6 per cent increase on Summer 2007, itself seen as a particularly strong performer in recent times.

As a result of these figures Screen Digest have today increased their 2008 DVD forecasts to 1.2%, meaning that 251.1 million DVDs are expected to be sold by the end of the year.

The months running up to Christmas represent the biggest sales period for home entertainment industries and with consumers being offered better value than ever before, plus a large number of strong titles coming out over the coming weeks in all genres, this growth is expected to continue. 

Lavinia Carey, Director General of the British Video Association, says:

“2007 was a record year for sales of DVD and so it’s very encouraging to see another record nine months into 2008. Everyone enjoys a well told story and at times of economic hardship, history has shown that UK consumers turn to the home entertainment and film industries for comfort. As a popular and value-for-money choice for leisure spend, we expect to see continued volume growth in our market, as consumers tighten their belts in response to increasing economic uncertainty.

Phil Clapp, Chief Executive of the CEA, added, “With films such as Indiana Jones and the Kingdom of the Crystal Skull, Sex and the City, The Dark Knight, Mamma Mia! and Wall-E driving cinema audiences in another particularly miserable summer, it is understandable that the public find attractive affordable entertainment as some kind of escape, even if only for a few hours, from the prevailing gloom. We expect the latest Bond movie, Quantum of Solace, to have a similar effect at the end of this month.”

Lavinia Carey continues, “We are now seeing Blu-ray contributing to the success of the home entertainment market, as consumers begin to explore its groundbreaking bonus features, superlative picture and sound quality, on an increasing number of new titles offered at the same time as standard definition releases. As this summer’s successful films join the pre-Christmas line up on all video formats, we are hopeful of another record year for the home entertainment sector.”

Some of the key statistics outlined in the most recent results include:

BVA

• 2008 video sales (all formats) to date (end September) are up 4.7% to 164.2 million.
• Year-on-year (52 weeks rolling) total video sales are up 4.9%.
• total video value is £1.4 billion.
• Year to date DVD value is up an estimated 1.9%.
• DVD sales in Q3 (July-Sept) 2008 reached 51.7 million (up 6.5% on Q3 2007 sales).
• September 2008 total video sales up 7.4% on September 2007 to 21 million.
• Blu-ray disc sales up 396% to 1.486 million units year to date.

Cinema Advertising Association

• Total admissions for months June to August 2008 – 53.6 million.
• Summer 2008 best performance since 1969.
• Summer 2008 had a 6% increase on summer 2007.

Screen Digest

• DVD sales expected to increase by 1.2% to 251.1 million units by year end.
• DVD 2012 unit sales forecast raised from 187 million to 208 million.
• Reports from the UK catering and high street retail sectors indicate that UK consumers are spending less time and money eating out and indulging in retail therapy; the numbers from the BVA certainly suggest that consumers are increasingly turning to home entertainment to fill their free time.

For more information, please contact Aideen McDonald on 020 7618 9100