At the dawn of the new millennium, a simple polycarbonate disc transformed home entertainment, propelling DVD sales to a staggering peak of 1.08 billion units in the U.S. before a dramatic fall reshaped the entire industry.
Key Takeaways
- In 2004, US DVD unit sales peaked at 1.08 billion units generating $21.4 billion in revenue
- DVD household penetration in the US reached 81% by 2008
- US DVD rental revenue was $6.8 billion in 2007
- Global DVD market revenue peaked at $27 billion in 2006
- Worldwide DVD unit sales 2.5 billion in 2005
- Europe DVD sales €15 billion in 2007
- Global Finding Nemo DVD sold 40 million copies
- The Lord of the Rings: Return of the King DVD 30M units worldwide
- Shrek DVD sales exceeded 50 million units by 2010
- US DVD industry revenue $24.5B total 2004 peak including rentals
- DVD contributed 65% to US studio home entertainment revenue 2006
- Global DVD wholesale revenue $15B in 2005
- Decline Trends: US DVD unit sales fell 90% from 2006 peak to 2022
- Physical media revenue dropped from $25B to $2B US 2006-2020
- Streaming overtook DVD rentals in US households 2010
The DVD era boomed in the early 2000s before declining as streaming took over.
Decline Trends
- Decline Trends: US DVD unit sales fell 90% from 2006 peak to 2022
- Physical media revenue dropped from $25B to $2B US 2006-2020
- Streaming overtook DVD rentals in US households 2010
- DVD player ownership US from 85% to 40% 2008-2020
- Global DVD market contracted 15% annually post-2010
- Netflix ended DVD mailing 2023 after 25 years
- US Redbox DVD rentals down 70% 2015-2022
- Blockbuster stores closed all but one by 2014 due to DVD decline
- DVD/Blu-ray US revenue $1.2B 2022 vs $18B 2011
- Streaming services captured 80% video market share by 2018
- UK DVD sales fell 50% 2015-2020
- Global physical video sales down 75% since 2010 peak
- Walmart ended DVD sales online 2021 accelerating decline
- US DVD new releases sales 90% drop 2010-2022
- Best Buy physical media dept shrunk 60% space 2015-2023
- Pirate streaming reduced DVD sales 20% further post-2015
- Europe DVD market revenue €2B 2022 vs €20B 2006
- Japan DVD rentals down 80% since 2010
- Catalog DVD sales now 70% of remaining US physical market
- 4K UHD Blu-ray niche but DVD legacy sales <10M US 2023
- Amazon Prime Video subscribers surpassed DVD buyers 2015
- Global DVD production facilities closed 50% since 2015
Decline Trends Interpretation
The DVD has staged a masterful retreat from cultural juggernaut to cherished niche, as the world, having collectively decided that a mountain of plastic discs was less appealing than an invisible, infinite library, traded its shelves for streams.
Global Sales
- Global DVD market revenue peaked at $27 billion in 2006
- Worldwide DVD unit sales 2.5 billion in 2005
- Europe DVD sales €15 billion in 2007
- Asia-Pacific DVD market $10B in 2010
- Global DVD player shipments 220 million units cumulative by 2008
- China DVD sales 300 million units in 2006
- UK DVD market £2.1 billion in 2005
- Japan DVD rentals ¥500 billion in 2007
- Global DVD revenue share 55% of physical media in 2004
- Latin America DVD sales $3B in 2008
- Worldwide DVD household penetration 40% by 2010
- Germany DVD sales €1.8B in 2006
- Australia DVD market A$1.5B in 2007
- Global pirate DVD sales estimated $6B loss in 2005
- France DVD revenue €1.2B in 2008
- India DVD market $500M in 2010 despite piracy
- Global DVD/Blu-ray disc production 5B units/year peak 2007
- Brazil DVD sales R$2B in 2009
- South Korea DVD rentals KRW 1T in 2006
- Global DVD market declined 10% YoY by 2012 to $18B
- Canada DVD sales CAD 1.1B in 2005
- Russia DVD market $1B in 2008
- Middle East DVD sales $800M in 2010
- Spain DVD revenue €900M in 2007
- Italy DVD market €1B in 2006
- Global DVD sales to drop 80% by 2020 from peak
- Mexico DVD sales $600M in 2009
- South Africa DVD market R1.5B in 2008
- Turkey DVD sales $400M in 2010
- Thailand DVD revenue 10B THB in 2007
Global Sales Interpretation
It was a glorious global frenzy where everyone briefly agreed to pay for movies on discs, blissfully ignoring the internet's impatient cough in the corner of the room.
Revenue Stats
- US DVD industry revenue $24.5B total 2004 peak including rentals
- DVD contributed 65% to US studio home entertainment revenue 2006
- Global DVD wholesale revenue $15B in 2005
- US DVD retail revenue breakdown 70% sell-through 30% rental 2007
- Warner Bros DVD revenue $4B in 2006
- Disney DVD home video $3.5B revenue 2004
- Universal DVD sales revenue $2.8B global 2005
- Paramount DVD revenue $1.5B US 2007
- Sony DVD revenue $2B worldwide 2006
- Fox DVD home entertainment $1.8B 2005
- MGM DVD revenue $800M peak 2004
- DVD profit margins for studios averaged 30% in 2003-2007
- US DVD rental revenue per disc $2.50 average 2006
- Global DVD licensing fees to studios $10B annually mid-2000s
- Blockbuster DVD rental revenue $5B peak 2004
- Netflix DVD revenue $1B from subscriptions 2007
- DVD accounted for 80% studio profits early 2000s
- US DVD sell-through revenue $12B 2005
- International DVD revenue for US studios 40% of total home video 2006
- DVD video-on-demand precursor revenue $500M global 2008
- Retailer margins on DVDs 25-30% US 2005
- Catalog DVD revenue 35% of total US 2010 $4B
- Blu-ray transition cost studios $1B in DVD cannibalization 2009
- DVD advertising revenue tie-ins $300M US 2004
- Global DVD packaging revenue $2B industry 2006
- US DVD revenue per capita $70 peak 2005
Revenue Stats Interpretation
The DVD was the golden goose of Hollywood, laying a $24.5 billion egg in 2004 and single-handedly funding the industry's blockbuster addiction with profit margins so plump they made executives weep with joy, until streaming came along and turned the whole buffet into a takeout menu.
Top DVDs
- Global Finding Nemo DVD sold 40 million copies
- The Lord of the Rings: Return of the King DVD 30M units worldwide
- Shrek DVD sales exceeded 50 million units by 2010
- Gladiator DVD sold 17 million copies in first year US
- Ice Age DVD 20M units globally by 2005
- Harry Potter and the Sorcerer's Stone DVD 25M US
- The Incredibles DVD 18M units worldwide
- Monsters Inc DVD 20M copies sold
- Spider-Man DVD 10M units first week US 2002
- Titanic DVD re-release 5M units in 2005
- Star Wars Episode II DVD 5.5M first day US
- Finding Nemo first week DVD sales 8.5M US
- Despicable Me DVD 10M units globally
- Toy Story 3 DVD 15M copies
- Avatar DVD 12M units first month 2010
- The Dark Knight DVD 7M US first week
- Kung Fu Panda DVD 8M units
- Pirates of the Caribbean DVD 12M worldwide
- Iron Man DVD 6M US 2008
- Up DVD 10M units Pixar's best seller
- The Hangover DVD 5M first week record comedy
- Twilight DVD 3M first day US 2009
- Mamma Mia DVD 6M UK/Europe
- Slumdog Millionaire DVD 2M units global
- Juno DVD 1.5M US indie record
- No Country for Old Men DVD 1M units
- There Will Be Blood DVD 800K units
Top DVDs Interpretation
While Shrek's swamp may have sold the most DVDs, the true lesson here is that families with kids, epic adventures, and a talking fish named Nemo reliably conquered the global living room, proving that home entertainment's holy trinity is animation, spectacle, and something for everyone to quote.
US Sales
- In 2004, US DVD unit sales peaked at 1.08 billion units generating $21.4 billion in revenue
- DVD household penetration in the US reached 81% by 2008
- US DVD rental revenue was $6.8 billion in 2007
- In 2010, US DVD sales volume dropped 13% to 800 million units
- Blockbuster Video rented 800 million DVDs in the US in 2005
- US DVD software revenue hit $18.6 billion in 2006
- By 2015, US DVD sales fell to 222 million units
- Redbox kiosks dispensed 1 billion DVDs in the US by 2013
- US DVD catalog sales accounted for 40% of total in 2012
- Netflix DVD rentals peaked at 1.6 billion discs mailed in 2008
- US DVD new release sales dropped 50% from 2006 to 2016
- In 2003, DVD players in 50% of US households
- US DVD revenue share was 60% of home video market in 2005
- Walmart sold 20% of all US DVDs in 2010
- US DVD sales generated $16.8 billion in 2007
- By 2018, US DVD unit sales were 44 million
- DVD rentals via mail declined 20% YoY in 2011 US
- US DVD sell-through market was $10.5 billion in 2004
- 75% of US households owned a DVD player by 2006
- US DVD sales to international markets from US studios $2.5B in 2005
- In 2002, US DVD rentals hit $4.5 billion
- DVD accounted for 90% of US physical video sales in 2007
- US DVD Blu-ray combo sales rose 25% in 2012 to 15M units
- Target stores captured 15% US DVD market share in 2009
- US DVD sales volume 943 million units in 2005
- By 2020, US DVD sales under 20 million units annually
- DVD player shipments to US homes 28 million in 2003
- US catalog DVD sales $7 billion in 2008
- 2014 US DVD rental revenue $1.2 billion
- DVD share of US video market 72% in 2004
US Sales Interpretation
The glittering empire of DVD sales, which at its peak made renting a movie feel like a national pastime, ultimately proved to be a breathtakingly short-lived golden age before streaming pulled the rug out from under it.
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