Video Revenues Fell Last Year
For the first time in years, Americans spent less money on home entertainment in 2007 than they had the year before, according to research conducted by Video Business. The statistics refer to movie-related hardware and software, and do not include TVs and other display-specific media.
The research found that $22.9 billion was spent by consumers on home entertainment rentals and purchases, a drop of 3.1 percent from the year before. The drop was attributed mostly to an “overcrowded” fourth quarter, and the hi-def disc format war, which put a drag on purchases of hardware as consumers waited for a winner.
However, the research indicated that, with Blu-ray poised to win the format war, the numbers have a chance to rebound this year.