Stat Sheet

Screen Digest: MOD will grow to $1.1 billion business - April 20, 2008

Consumers will spend $1.1 billion by 2012 buying DVDs manufactured on demand (MOD) in stores and online in the U.S. and Europe, according to research firm Screen Digest.

Almost two-thirds of the spending on MOD, $665 million, will be new revenue, while the remainder will replace traditional DVD spending, according to the report, “On-demand Media: Re-inventing the Retail Business Model.” Screen Digest refers to MOD as on-demand media, a term it believes is more inclusive of future digital developments. 

Consumers will spend $33 million this year in the U.S. and Europe on discs manufactured on demand, Screen Digest predicts. Most of that spending will be online through Amazon.com, which produces DVDs on demand through its CreateSpace subsidiary for CNN, CBS News, Charlie Rose and other suppliers and independent producers.

Screen Digest believes online MOD will grow faster at first because consumers don’t need to make changes in how they shop, as MOD titles are marketed online similar to pre-manufactured titles and available in the same timeframe.

MOD in stores will be offered through kiosks, and consumers will have to wait about 10 minutes for the discs to be pressed.

Screen Digest predicts that in the next five years, in-store MOD will grow, accounting for half of MOD spending by 2012. Retailers are expected to begin launching pilot tests of kiosks in stores this spring in the U.S. —J.N.

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