CEMA: Home Theater on the Rise
Sales of home-theater-specific video products rose 8% in the first half of 1999. Sales of surround-sound receivers grew by 5%, even though audio in general declined by 6%. Overall, the industry enjoyed revenues of $196 million for the first six months of the year.
Sales of projection televisions also rose by 6% in the first half of the year, to $645 million. DVD sales represented almost 10% of total revenues from home-theater products, a figure that CEMA's report calls "phenomenal." Last year, DVD accounted for only 3% of home-theater-related sales.
Sales of all blank media products went up slightly during the first half of 1999, with corresponding dollar volume sales to dealers up 2%, to $368 million. Videocassette sales (VHS, DVC, and 8mm) rose 4%, to $77 million. Even though unit sales of VHS tapes to dealers increased, declining prices caused a 15% drop in dollar sales, to $203 million, in an otherwise profitable period.