Alexander & Associates’ latest Product Flow Report was released in February 2002. This analysis takes a look at final results for the Third Quarter of the 2001 video rental  market, discusses the current outlook for the Fourth Quarter of 2001, and sets expectations for the First Quarter of 2002. Following is a summary of our findings:

• Third Quarter 2001 rentals climb, up 4% from 2Q01: Combined VHS and DVD rentals for Third Quarter 2001 totaled 975.4 million. This is up 4% from Second Quarter 2001, which produced 938 million total rentals.

• Fourth Quarter 2001: VHS rentals for the first five weeks of Fourth Quarter 2001 are consistent with the first five weeks of Fourth Quarter 2000, at the same time DVD rentals were up 130%.

 
• First Quarter 2002: Forecasts are still uncertain due to lack of solid release date information. Current box office flow for First Quarter 2002 might be 15% lower than First Quarter 2001