USA: Holiday sales of DVDs and video games experted to surge while CD sales expected to stay flat

Record ID: 384867

  • Title: USA: Holiday sales of DVDs and video games experted to surge while CD sales expected to stay flat
  • Date: 22nd December 2008
  • Summary: WASHINGTON D.C., UNITED STATES (DECEMBER 18, 2008) (REUTERS) (SOUNDBITE) (English) VICE-PRESIDENT OF NATIONAL RETAIL FEDERATION SCOTT KRUGMAN SAYING: "What we're finding this holiday season is that consumers are nesting, which means they're focusing on things for the home and that leads us to home entertainment. It brings us to electronics, DVDs, videogames."
  • Embargoed: 6th January 2009 12:00
  • Keywords:
  • Location: Usa
  • Country: USA
  • Topics: Arts / Culture / Entertainment / Showbiz
  • Reuters ID: LVAC7Q5LLUYMS5KXV3DM6ZFJEN4F
  • Story Text: Movies, videogames and music are all popular forms of entertainment but when it comes to market share there is a clear hierarchy in who will do well this holiday season, according to experts.

    "What we're finding this holiday season is that consumers are nesting, which means they're focusing on things for the home and that leads us to home entertainment. It brings us to electronics, DVDs, videogames,"
    said Scott Krugman, Vice-President of the National Retail Federation.
    Products that are viewed as providing longevity in terms of entertainment are more likely to do well as cash-strapped consumers tighten their purse strings. Videogames and DVDs are expected to have high sales but only those that are blockbusters or have strong brand recognition.
    Experts think shoppers will opt for video game consoles like the Xbox 360 and particularly Nintendo's Wii, which launched two years ago and has a wireless controller, which is very appealing to many consumers.

    "What we're seeing is particularly the Wii doing very, very well," said Michael Gartenberg, Vice-President of mobile strategy at Jupiter Media. "Several years after introduction, it's still very hard to find. And the reason again long-term perceived value and because it's perceived as something everyone in the family can enjoy."
    When it comes to DVDs, experts say consumers will be just as picky, opting for the big hits of the year. "The Dark Knight" which was the year's top grossing film taking in more than 530 million dollars (USD) since being released this summer is expected to be a big seller. The movie stars Heath Ledger who died earlier this year of an accidental overdose. Experts also say "Iron Man", which has grossed 318 million dollars (USD) will be a hot gift as will "Indiana Jones and the Kingdom of the Crystal Skull".
    While DVDs and videogames appear to be winners this holiday season, CDs seem to be stuck with coal in their stockings. Experts say people now prefer to give itunes gift certificates to friends and family because they see it as more valuable in terms of getting exactly what you want.

    "The problem with the CD is I'm stuck with that collection of music. What we're seeing is consumers saying 'I'm willing to spend a CDs worth of money - 10 or 12 dollars but I'll pick the songs that go into the collection, not the artist," said Gartenberg.
    The predictions indicate that this year, the gloomy economy is pushing consumers into hibernation mode.
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