3DsoundSurge Press Release: NPDTechworld Reports DVD Sending Home Theater Sales Through The Roof

NPDTechworld Reports DVD Sending Home Theater Sales Through The Roof

PORT WASHINGTON, N.Y.--(BUSINESS WIRE)--July 1, 2002--The popularity of the DVD is having a tremendous impact on sales of home theater components, according to the latest sales figures released by NPDTechworld(SM), the leading provider of consumer electronics and information technology market information.

DVD player unit sales increased 68.8 percent in 2001 compared to sales in 2000. Unit sales have increased 20.7 percent during the first five months of 2002 when compared with the same period the year prior. Sales of home theater systems with DVD increased 230 percent in 2001 versus 2000 and more than 987 percent during the first five months of 2002 when compared with the same period in 2001.

Televisions 30 inches and larger have also experienced a steady increase, with unit sales rising 9.4 percent in 2001 over 2000 and a slight increase so far this year.

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      Home Theater Components:
 Year-over-Year Growth (unit sales)    2000     2001   Jan.-May 2002
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      30" and larger screen TVs       +2.1%    +9.4%       +0.2%
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             DVD Players              +85.9%   +68.8%      +20.7%
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     Home theater audio systems       +39.5%    +59%      +131.3%
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    Home theater systems with DVD      NEW     +230%      +987.8%
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 Component amps & receivers with
        Dolby Digital                +140.1%   +22.6%       +57%
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Source: NPDTechworld consumer information

"Ten years ago, a 19-inch television with stereo speakers qualified as a home theater, but today big screens and big sound is the choice," said Tom Edwards, senior analyst, NPDTechworld. "DVD has created an awareness of better picture quality and better audio . . . a true theater experience in your own home."

While DVD and home theater components have taken off, videocassette recorders (VCR) have experienced significant sales declines. VCR unit sales decreased 40.5 percent over the first five months of 2002, compared to the same period in 2001. The high-quality picture generated by DVD technology has made it the movie player of choice.

"The VCR is not going to disappear overnight. After twenty-five years of sales, VCRs are in 90 percent of U.S. homes and many of those models will be replaced by better performing and more affordable components. The VCR is also the home movie player for all those camcorder tapes accumulated over the years," Edwards added.

About NPDTechworld

NPDTechworld is a leading provider of essential market information and insights organized around business issues. Through powerful interactive features, NPDTechworld provides the consumer electronics, information technology and imaging industries with gold standard point-of-sale tracking services provided by NPD INTELECTŽ Market Tracking combined with information from The NPD Group's world-class online consumer panel for unique perspective on what is selling, where, to whom and why. To learn more about NPDTechworld, visit www.npdtechworld.com.

NPDTechworld is a registered service mark of The NPD Group, Inc. NPD INTELECT is a registered trademark of The NPD Group, Inc.

Contact:

     The NPD Group, Inc.
     Jarad J. Smith, 703/376-6226
     jarad_smith@npd.com
              or
     Sean P. Dolan
     sean_dolan@npd.com, 516/625-2288