Our take...

Further analysis of the results indicates a decline of 2.4 per cent in volume and 6 per cent in value across these three key markets which between them represent two-thirds of the total West European video market (66 per cent of consumer spending in 2008), suggesting that the downward trend in European video spending experienced in 2008 is set to continue in 2009. First quarter results can be somewhat misleading due to the flexible timing of the Easter break, an important gift-giving period. In 2009 this fell in the second quarter rather than the first as it did in 2008. However, in the UK, where Easter is an important gift-giving season, even though sales picked up in April 2009 it was not enough to put the year in line with 2008. Extending the analysis to the first four months of 2009 only slightly reduces the volume decline (to 8 per cent) and actually exacerbates the downturn in value to 14 per cent. Meanwhile France appears to be on course for what is widely expected to be its fifth consecutive year of decline. For Germany, however, a country with traditionally low home entertainment spending per head of population, the first quarter results are encouraging, boding well for the rest of the year - particularly following the relative stability the market experienced in 2008.