LAS VEGAS — Despite competition from Internet-based movie delivery, cable and satellite on-demand, and digital cinema, DVD continues to attract the majority of consumer spending on movies. This was a core finding of the 2007 Annual Report on the Home Entertainment Industry, which was released yesterday during Home Media Expo 2007, the annual convention of the Entertainment Merchants Association, Encino, Calif. Relying on data from industry sources, the report states that consumers spent $23 billion on DVD purchases and rentals in 2006, compared to $9.5 billion in box office revenue and $982 million for Internet, cable and satellite on-demand. "While consumers are viewing filmed entertainment through an increasing variety of devices and services, they remain loyal to DVD," said Bo Andersen, EMA’s president. "DVD will continue to be the most popular way for the public to view movies for the foreseeable future, and we expect high-definition discs to become the dominant home video format within five years." The report, citing Adams Media Research, Carmel, Calif., also noted that mass merchants continue their dominance of the DVD sales market, with a 43% market share, while consumer electronics retailers have 16% of the market and online retailers have 12.5%. In the rental market, publicly traded video rental chains account for 43% of the market, other video stores have 39%, and online rental services now have a market share of 16%. The kiosk segment was less than 1% of the DVD rental market last year, but is expected to rapidly increase.

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