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Friday, January 31, 2003
DVD is the fastest growing Consumer Electronics Segment, report says!

DVD: The most meteoric growth of any consumer electronics technology ever introduced! The DVD market is a bright star on the technology economy horizon, according to a new report available today by international analyst firm, Jon Peddie Research. The report, "DVD Market: Players, Recorders, Media and Future" projects that the total number of DVD systems in 2006 will be over 420 million units. The total market for all types of DVD systems is growing at 31.4 % compound annual growth rate (CAGR) while DVD recorders alone account for 271% CAGR.

The growth of the DVD market has positive implications for the computer, consumer electronics, automotive and semiconductor industries. Semiconductors involved in DVD products are enjoying a 44% CAGR and media production for DVD will exceed 1.6 billion discs by 2006 -- a CAGR of 159%.

Since DVDs players started shipping in Japan in 1996 and the first commercial title, A Hard Day's Night, was published on DVD the following year, DVD has enjoyed the most meteoric growth of any consumer electronics technology ever introduced. Pricing has reflected the rapid adoption of DVD with players falling from $504 in July 1998 to $129 in December 2002 with some units going for as low as $59.

Controversial issues such as copy protection and digital rights management are not deterring the momentum of the DVD market, the report confirms. Despite early marketing experiments resulting in some questionable combinations of DVD, TV, Personal Video Recorders (PVR) and legacy VHS, the DVD market has seen over three years of stupendous growth, said Dr. Jon Peddie, president of Jon Peddie Research. "It shows no sign of slowing down and this year it's poised to explode again as DVD enters new markets."

Markets for DVD technology are expanding from traditional standalone players to computer player/recorders (74% CAGR), set-top boxes (31%), mobile computers (47%), and automobile multimedia systems (71% CAGR). Other markets include industrial systems and appliances (74%).

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