Six years after the introduction of the DVD format, the Video Software Dealers Association (VSDA) announced today that for the first week ever, DVD rentals generated more revenue than VHS. Last week DVD rentals generated $80 million in revenue, and VHS rentals yielded $78 million, according to VSDA VidTrac.
VHS still leads in the number "turns", the number of units rented, accounting for 54% of the turns last week. Higher fees associated with DVD rentals were enough to credit DVD rentals as a higher source of revenue.
However, it's important to note that there is no way to separate adult revenues from the overall total. In fact, Richard Rostenburg, who sits on the VSDA's Adult Advisory Committee, suggests that VHS still reigns supreme in terms of adult rentals.
"We're talking about adult product here. Not everyone watches these in the family room. I wouldn't be surprised if nine out of ten of the VHS renters have a DVD player at home - just not in the right room for watching adult entertainment. That will change eventually," Rostenburg told AVN.com.
"I have found that day in and day out I'm doing more DVD general rentals than VHS rentals, but in term of the adult rental market it's just not there yet," said Rostenburg.
Rostenburg does note that at his own Kansas City store, Hollywood at Home Movies and Magazines, adult DVDs outsell adult VHS. "The buyers market is just more progressive than the renters," suggested Rosenburg.
VSDA VidTrac is the video industry's most accurate video rental point-of-sale tracking technology. It measures national consumer video rental spending based on actual rental transactions. It does not differentiate from adult and mainstream titles.
