DVD............................
asiansources.com
Steep price of hardware, software seen as temporary setback
<Picture>Korean giants already make second-generation DVDs, expect strong worldwide demand for the line
Contents
EVEN THE staunchest proponents of the DVD player admit that the line has yet to meet sales expectations. But with this year's first-quarter rollout in the United States successfully achieved, and a market foothold won, optimism is at last running high. Distributors, dealers and retailers alike see DVD as the driving force behind a forecast resurgence of consumer electronics sales.
All probable obstacles to the growth of the line are being addressed, including the key issue of software shortages. Entertainment suppliers, movie studios and manufacturers have all vowed to step up the release of DVD titles this year, and this is bringing down prices to more reasonable levels, they say. Typically, a movie on DVD currently retails for between $24.99 and $29.99 in the United States.
And a US industry association promoting the product said that from fewer than 300 going into the fourth quarter, the number of DVD titles is forecast to more than double by the end of 1997. As Hollywood now appears to have bought into the technology, further, rapid growth can be expected.
Developments have been slower in Europe, where standardization issues have held up business. But a similar picture is now emerging, with a group of movie studios planning to launch about 100 DVD titles in Europe in the first quarter of the year. By year-end, they expect the total to top 250.
Their move is being complemented by the leading hardware manufacturers, which have unveiled plans to release LD-compatible DVD players by spring. Predictions also see the eventual lowering of hardware prices in the same way that prices of CD players fell. A top-end, multifeatured Sony model sells for about $1,000 in the United States. One Hong Kong manufacturer expects to produce its own DVD player for less than $300, FOB.
That's when the mass market is ready. Elsewhere in Asia, production is already underway. The Korean chaebols are moving into second-generation supply, including production of a portable model by Samsung. And in China, one firm launched the country's first DVD player in August last year. Full production is scheduled to begin mid-1998. - Asian Sources Electronics, January 1998 |
