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Kagan: Format War Hurts Home Video

Oct 12, 2006  •  Post A Comment

Emerging high-definition formats are shaking up the marketplace, according to Kagan Research’s 11th annual State of Home Video research study, which the company released this week.
Among the findings: Home video revenue will drop again this year, down .4 percent to $7.2 billion, and the format war between HD DVD and Blu-ray might make things worse. DVD collectors appear to be delaying purchase plans of popular titles until a format emerges victorious.
Despite the immediate drop, the hi-def video market is expected to grow steadily over the next decade. Kagan predicted that by 2009, VHS will be nearly extinct and hi-def DVD revenue should be about $2.6 billion. By 2015, VHS tapes will no longer be in production and hi-def DVDs will be the major-market shareholder with $18.3 billion in revenue, the report said.
Kagan’s annual State of Home Video report charts revenue growth and the changing economics of the home video market, examining the progression of VHS, DVD, HD-DVD and VOD.
This article is part of TVWeek.com’s High Definition newsletter, a weekly source of breaking HD news, articles and interviews written by Senior Reporter James Hibberd.

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