Since Mintel’s last report into the market in 2003, rising penetration of DVD technology has broadened the market’s consumer base. Indeed, DVD has emerged as the dominant format, while VHS has moved progressively closer to obsolescence. The DVD category remains strong, although the uptake of the relevant technology has slowed since the last report, resulting in a relative slowdown in sales of the format compared with its initial years of exponential growth. Flagging VHS sales have held back growth in the market as a whole, and the industry is currently waiting in anticipation for the timely boost that is expected to result from the impending launch of next-generation DVDs.

About the market:

Since Mintel’s last report into the market in 2003, rising penetration of DVD technology has broadened the market’s consumer base. Indeed, DVD has emerged as the dominant format, while VHS has moved progressively closer to obsolescence. The DVD category remains strong, although the uptake of the relevant technology has slowed since the last report, resulting in a relative slowdown in sales of the format compared with its initial years of exponential growth. Flagging VHS sales have held back growth in the market as a whole, and the industry is currently waiting in anticipation for the timely boost that is expected to result from the impending launch of next-generation DVDs.

New avenues of distribution are emerging and developing in the market, with online rental services making their presence felt and the popularity of Internet video and DVD retailers continuing to rise. In addition, technological developments are opening up the potential for new delivery methods for video content, such as downloading via the Internet and the viewing of films on portable devices. As such, despite a current degree of stagnation, a number of opportunities exist for the market to evolve in new directions and to return to the impressive growth rates seen at the time of the last report.

About Mintel’s research:

Pooling together the most innovative consumer research, most sort-after trend data and latest market analysis, Mintel's new report offers you all the insight and inspiration you need for designing clever, creative and profitable marketing strategies. Use Mintel's research to fully understand the market’s dynamics and to:

Track market sizes, driving forces and segmentation

Analyse UK retail and rental sales values, as well as the market shares of leading publishers

Track ad spend of the leading publishers

Find out which are the most effective sector distribution channels

Study which are the most popular types of DVD/video bought and rented

Identify penetration levels of pre-recorded DVDs and videos and the frequency of purchase

Understand evolving attitudes towards buying and renting DVDs and videos

Pin point market potential before your competitors

Determine key target audiences

Find out how to best reach key audiences with the most effective marketing communications

Measure market forecasts and build realistic business models.

Intriguing findings include:

Some 57% of households owned a DVD player in 2005, and this figure is expected to continue to rise with players now priced as low as £25.

Buena Vista commands the highest share of supply in both the retail and rental markets for videos and DVDs, accounting for 14.6% of all retail volume sales and 18.2% of all rental transactions in the UK.

27% of respondents to Mintel’s survey indicated that they are influenced by special offers when buying DVDs/videos, while 13% indicated that they prefer to buy rather than rent because of high rental prices or late fees.