Consumer spending overall on movie and TV videos rose by 26% to $17.3bn in eight key markets; UK, Germany, France, Spain, Italy, Australia, Japan and the US in 2007. Despite the rise, spending on buying movies declined everywhere except the US, UK and Australia.

That was one of the key findings of latest research from media analyst Screen Digest into the relationship between box office takings and subsequent video sales (DVD or HD) of a film.

While movie titles continue to dominate video sales, their share has been eroded by at least 5 per cent in every market except the UK, and by over 20 per cent in France and Germany.

The analysis examined the reasons behind the slowing of movie sales - from the quality of the actual titles to alternatives to home movie viewing. It suggests that part of the decline is due to the dramatic increase in sales of TV series on video

In terms of box office, the research highlights that in five of the eight markets researched, consumers spent more on trips to the cinema in 2007 compared to the previous year.

Commenting on the findings, Helen Davis Jayalath, Head of Video at Screen Digest said: 'Understanding the link between box office success and video sales is the Holy Grail in movie analysis for Hollywood studios and other rights holders. Video sales represent on average 41 per cent of the worldwide revenue generated by a film, compared with just 25 per cent generated at the box office, so understanding how box office trends are affecting video sales in each territory is critical to planning in today's changing economic climate.'

The research showed that each of the markets has its own characteristics. UK and Australia were the only markets to see growth in both cinema and video sales in 2007.

France, Spain, Japan and the US experienced a decline in video sales despite stable Box Office takings. In Italy video takings continued to fall despite an upturn at the Box Office in 2007.