Blockbuster the global video rental giant, has reported a 92% increase in third-quarter earnings as it continues to benefit from the increasing growth and higher margins of the burgeoning DVD market.

The company said that it expects that its DVD business, where margins are some 10% higher than that of video, to continue to drive revenues and gross margins in the fourth quarter.

Early indications are that the video and DVD markets have been boosted by the after-effects of the Sept. 11 attacks on the United States.

Less than two months ago (Screendaily Sept 12, 2001), Blockbuster chairman John Antioco announced plans to discard 25% of its stock of video tapes to make room for the growing number of DVD releases - at a cost of some $450m to the company.