Growth in DVD spending is expected to continue

While the market for music, games and VHS has declined in recent years, DVD sales have rocketed by 20%, according to figures from Screen Digest.

DVD sales in the UK, France, Germany, Spain and Italy are expected to show a further 10% growth in 2005.

But consumer spending on games and music is likely to reveal a downturn of 3% and 5% respectively.

Considerable growth

2004 was the first year in which DVD retail sales exceeded games and music.

In the five leading European markets that year, more than �5.2bn was spent on DVDs, �4.4bn on recorded music, �2.94bn on games and just �480m on video tapes.

More DVDs than ever were sold last year, but a fall in prices of up to 11% meant that the level of consumer spending fell overall.

Spending on DVD rentals across Europe is thought to have reached around �1.5m. Video cassettes will die out altogether within two years, research suggests.

Last year, three-quarters of consumer spending on DVDs was in the biggest five European markets, and the more affluent parts of the continent.

DVD players and recorders are owned by around 60% of people in western Europe, but considerable growth is expected in central and eastern Europe in the future.