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Question #1: How many hours (or days) per year are you watching DVDs at home? Such question is relevant, when one considers the following… US consumers have spent almost $23 billion (£13 billion) in DVDs during the year 2005 according to the Digital Entertainment Group (DEG). Such figures consist of sales of DVDs for $16 billion (£9 billion) and $6.5 billion in rentals. The latter number represents a 14 percent increase, while the former is up 5 percent from 2004.

To read this massive amount of DVDs, consumers bought 37 million DVD players, of which 17 million (almost 46 percent) in the last quarter.

US consumers spending on Home Video (DVD, VHS, Rentals, Sell-through) since 1999

Question #2: will they be willing to jump into Blu-ray or HD-DVD in the year 2006? After all, almost 82 million US households own one or more DVD player, and this goes up to 89 million when one includes DVD-capable gaming consoles. Less than 20 million households own a single, living room installed DVD player; more than 80 percent of homes have more than one player. Total figures since the inception in 1997 of the DVD format are astounding, with more than 164 million DVD players sold. That would include sub-categories such as combos, set-top, portable etc. (see below)

US DVD Hardware Sales by Quarter (millions)

Meanwhile, confused consumers have received a clear-cut support from those who ultimately sell most of their purchases: the US retailers. Don’t feel desperate and alone, the Circuit City (NYSE:CC), CompUSA, Best Buy (NYSE:BBY) people performed a live version of “Grapes of Wrath” (colorized) at the CES 2006. Retailer chains top notches delivered clear messages about the ongoing format battle, and the confusion it triggers among consumers.

Noth American DVD-Video Shipemnts by Quarter (since 1997)

Best Buy CEO Brad Anderson said “we are frustrated” at a panel session that took place on Friday 6 January here. The recognition of the very existence of such a battle between Blu-ray and HD-DVD formats was qualified as “stupid” and “nightmarishly unfriendly.” Brad Anderson continued: he added "We are going to wind up with some number of consumers probably buying a format that dies, and we are probably going to wind up having to sell it to them. They are not going to be happy with us."

In fact, manufacturers act as if they have learnt nothing from the decades-old and costly battle between VHS and Betamax. Bottom line, retailers said, we are going to sell millions of boxes, one version of which will be obsolete or even abandoned one day or another. And that will not only confuse, it will spark anger in the consumers’ minds. The said average consumer could well decide not to buy anything before the conflict finds an issue. Since brands haven’t been able to settle a unified format, the brawl will settle on the battlefield, to the great sorrow of both retailers and consumers.

Visit the Digital Entertainment Group here