DVD sales in Germany passed the 100-million mark for the first time in 2006, but revenues fell 4%, according to the latest figures from video trade body Bundesverbande Audiovisuelle Medien (BVV).

German retailers sold 100.7 million DVDs last yyear, compared to 98.7 million in 2005. In December alone, 18.6 million DVDs were sold, against 16.8 million in December 2005.

"There are some distributors selling films dirt cheap on DVD," Kogel told the Handelsblatt business daily, quoted by Variety, after the GfK market research institute reported that revenues fell to €1.73 billion ($2.28 billion) in 2006 from $2.37 billion in 2005 even though unit sales rose to 101 million from 98.7 million in 2005. "The fall in prices will continue," Kogel said.

Increased competition in the sell-through market has forced down prices. Last year a new release cost an average of €12.9, compared to €13.4 in 2005. Overall, sell-through profits fell 4% to €1.3 billion from €1.4 billion a year earlier.

Rental revenue in 2006 dropped 11% to €284 million compared to €320 million in 2005. Rental unit figures fell to an all-time low of 112 million, affected in part by the World Cup in Germany as well as a long, hot summer that dampened demand.

The industry's total profit of €1.6 billion last year represented a 5.6% drop but was still almost double the €814 million taken at the German boxoffice last year, according to the BVV-commissioned figures.

Story filed 01.03.07