DVDs energize home video market

Lisa Snedeker

Monday, Jan. 8, 2001 | 11:06 a.m.

While music sales lagged last year, video and DVD sales finished strongly, and video rentals hit record highs, industry experts say.

"Consumer spending for home video is at an all-time high," said Bo Anderson, president of the Video Software Dealers Association, crediting digital video discs, or DVDs, for the increase.

"DVD rental is a boom market," Anderson said in Las Vegas Sunday at the association's 20th annual meeting, with video rentals finishing 2000 at a record $8.25 billion in sales, up 2.2 percent.

And while DVDs are being credited for energizing brick-and-mortar video stores, opportunities for e-commerce in the home video market are even greater, according to Jeff Bezos, founder and chief executive officer of online store Amazon.com.

In addition to giving customers the opportunity to pre-order a DVD of a film like "Traffic" while it is still in theaters, Bezos' Web site allows retailers to sell hard-to-come-by classic movie titles.

"We believe DVD video sales are always going to be a big part of our sales," said Bezos, who added DVD purchases are outnumbering VHS 4-to-1.

As vendors hawked different flavors of popcorn amid studio displays, including from Universal and New Line, a number of celebrities were on hand to promote films available on video. Actor Kevin Bacon accepted the "Video Man of the Year Award" as part of the association's Home Entertainment Awards.

Also signing autographs were newcomer Ashton Kutcher, from Fox's "That '70's Show," who received the association's rising star award, and actress Ellen Burstyn, nominated for her starring role in "Requiem for a Dream," who earned the career achievement award.

The convention is promoting a Filmmakers of Tomorrow series that brings independent filmmakers together with video store owners. "We're teaching them how to get into the home video market," association spokeswoman Sue Procko said.

The association is a not-for-profit international trade association for the $17 billion home entertainment industry.

Approximately 10,000 people will attend the convention being held at the Sands Expo and Convention Center, at the same time an estimated 130,000 people are attending the 2001 International Consumer Electronics Show at the Las Vegas Convention Center.

"It's a place where the mediums merge," Procko said. "The DVD hardware is sold at CES and the DVD software is sold over here."