DVD sales slump in wake of Zavvi and Woolworths collapse

The collapse of Woolworths and Zavvi hit sales of DVDs last year, according to new figures, while cash-strapped consumers are increasingly deciding to rent the latest movies rather than buy them. The actual number of DVDs sold in the UK dropped 5.6% last year, the first decrease since 2005. The fall was sharpest in new-release titles, which make up about a quarter of the market, with sales down 15% in 2009, according to the British Video Association's yearbook, published today. Including the embryonic digital download market for video, which is dominated by Apple's iTunes, total sales were down 4.7% at 250.7m The average price of a DVD was £8.62, down 60p in the year, and overall DVD sales by revenue were just over £2bn, down 13.3%. Including digital downloads, sales were £2.19bn, down from £2.4bn in 2008. But the rental market actually grew – to £415m last year from £412m in 2008 – as consumers opted for easy postal rental services such as Lovefilm. The BVA also blamed the "Mamma Mia" effect for the drop in sales. In 2008, Mamma Mia! – The Movie sold 5.1 million copies, many to people who do not regularly buy DVDs, and there was no equivalent blockbuster last year: the three bestselling DVDs were Harry Potter and the Half-Blood Prince, the James Bond film Quantum of Solace and the vampire saga Twilight.