Stores sell more DVDs than CDs

SALES of DVDs have soared by almost a third in the past year, outstripping CDs at leading music stores for the first time.

HMV, which once prided itself on being 'top dog for music', has just reported that DVDs now make up 44.3% of all sales at its 208 British stores.

At the same time CD sales have dropped to 43.9% as the emphasis changes from music to movies.

The fall in music sales has been blamed on the increasing number of outlets selling songs and albums, from supermarkets to Internet download sites such as iTunes.

While a record number of albums were sold in the UK last year, shoppers have been deserting traditional music stores to download chart CDs for prices starting from £7.99

HMV chief executive Alan Giles said: 'DVD growth has been extraordinary and will be larger than music this year. It is the most rapidly adopted new entertainment format of all time.'

DVDs have soared in popularity since the cost of players plunged to as little as £25. The average price of the discs has also dropped, from £17 in 2003 to just under £15, and is due to come down still further because of an increasingly competitive market.

Sales of DVDs have also gone up since electrical stores such as Dixons began phasing out the video cassette recorder after more than a quarter of a century to concentrate on its successor, DVD players and recorders.

HMV spokesman Paul Barker said: 'The decline of the VHS is an important factor as people have started transferring from video to DVD. Just over 60% of households in the UK now have DVD players - up from about 45% in 2003. That should rise to 70% by the end of the year. Once customers have invested in the hardware, they want decent quality software to match.

'DVDs and their players are now incredibly affordable. We think music sales have come down as a result because consumers have only so much to spend on home entertainment.'

The growing popularity of DVDs was thought to be a factor in the group's 13.5% increase in pre-tax profits to £134m last year.

Retailer Woolworths, where CDs and DVDs make up a quarter of all sales, says it is making room for movies and cutting down on space for music. Sales of DVDs outstripped those of CDs by 28% in its 827 stores last year. A spokesman said: 'In terms of growth, DVD sales have been phenomenal and far greater than music.'

Matt Phillips, of the British Phonographic Industry, the music industry trade body, said a record 163.4m albums were sold in the UK last year. He added: 'DVDs are a relatively new format whereas the CD is now fairly mature.

'However, the UK music market is still very strong thanks to a rise in the number of alternative outlets such as supermarkets and the internet.'