Eject Cassette, Insert Disc

According to a report in The New York Times, sales of digital videodiscs (DVDs) have surpassed sales of videocassettes for the first time, even though DVD players are in only about one-third of American households. (By comparison, videocassette recorders are in more than 90 percent of U.S. homes.)

The Times says that according to industry projections, Americans will spend nearly $3 billion more on DVDs this year than they did last, an increase of 50 percent.

DVD players entered the market in 1997. At the time, they cost between $600 and $700. They now go for as low as $150, with some retailers offering Christmas specials of as little as $75.

Industry research shows that in 2001, about 52 percent of the $10.3 billion film purchase market went for DVDs. The estimate is that by the end of 2002, the total market will have increased to $12.4 billion, and the DVD market share will be 65 percent.

In the movie rental market, DVDs gained 116 percent in the first half of 2002 versus a year ago, while video rentals — though still enjoying a larger market share — dropped 22 percent.