European spending on videos declined to 11.9 bln euros in 2005

In spite of DVD player penetration in Europe breaking the halfway mark at 53% in 2005, total consumer spending on video declined from 12.8 bln euros in 2004 to 11.9 bln euros in 2005. By the end of 2006, Screen Digest anticipates that retail DVD unit sales will have plateaued and continued price erosion is expected to depress consumer spending on DVD retail by 5% YTY. Meanwhile, Screen Digest forecasts consumer spending on DVD rental to decline by 7% in 2006, representing less than 20% of European consumer spending on video software.