(6 January 2010 1:00 pm)

MUMBAI: The recession has brought back American audiences to the theatres. DVD sales has taken a dive while box-office collections have soared, according to Adams Media Research.

Disc sales, including DVDs and Blu-ray, dropped 13 per cent year-over-year to just $8.73 billion in 2009, down from $10.06 billion a year ago.
Box-office spending, however, rose 10 per cent to $9.87 billion in 2009 in the US.

Company president Tom Adams, however, clarified that the 2009 figures are preliminary as late December figures are being worked on.

According to the report, disc rentals remained almost flat while video on demand rentals increased minimaly as did online purchases. Sales of DVDs have been undercut by the rise of low-cost rental.

Hollywood has traditionally relied on DVD sales to underwrite the cost of production and marketing films, but the market has diversified in recent years.

The demand for on-demand television and online distribution has been steadily increasing. Companies such as kiosk chain Redbox, which rents DVDs for $1 a day, are proving to be popular with the public, where DVDs can be picked up and returned in fast-food restaurants, pharmacies and shops.

Online subscription services such as Netflix Inc have also been a success in the past decade as they offer a "watch instantly" service where some subscribers can watch films on a PC or TV at home.