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Audio Growth Exceeds Video In ’00 Home Theater

ARLINGTON, VA. -Factory-level sales of home theater components grew 5 percent in 2000 to $9.98 billion, led by a double-digit gain in home-theater audio sales, statistics from the Consumer Electronics Association show.

Sales of A/V receivers and speakers grew 26 percent to $1.09 billion, CEA said. Sales of home-theater-related video, on the other hand, rose a meager 2 percent, but at $8.89 billion, their volume exceeded audio volume by more than eight times.

The CEA’s definition of a home theater consists of:

  • A projection television or direct-view TV set with a diagonal screen size of at least 25 inches.
  • A video source such as a HiFi/stereo VCR or a DVD player.
  • A surround-sound-equipped receiver or compact shelf system.
  • And four or more speakers.

In audio components, A/V receiver sales rose 16 percent in 2000 to $551 million, while sales of speakers and speaker packages rose 38 percent to $539 million.

Sales of direct-view TVs with a minimum 25-inch screen size were flat at $4.58 billion, and sales of analog projection TV fell 9 percent to $1.48 billion.

DVD player sales, on the other hand, grew 56 percent to $1.71 billion, but HiFi VCR sales contracted 18 percent to $1.12 billion.

Fourth-quarter home theater growth slowed considerably, posting a gain of only 2 percent to $3.09 billion. Again, video growth lagged audio growth. Video sales were flat at $2.76 billion, while audio sales rose 24 percent to $328 million.

Fourth-quarter video sales were dragged down by a 22 percent decline in analog projection sales to $420 million and a 20 percent decline in HiFi VCR sales to $345 million. Analog direct-view sales were flat at $1.37 billion. DVD sales, however, surged 47 percent to $627 million.

In audio, fourth-quarter sales of speakers rose 45 percent to $176 million, while receivers grew 6 percent to $152 million.

Factory Sales of Home Theater Products/$ in millions

* Includes home-theater-in-a-box.

Note: Totals may not equal the sum of the detail due to rounding.

Source: Consumer Electronics Association, Arlington, Va.cTWICE 2001