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Technology Stocks : C-Cube
CUBE 36.29+1.9%Nov 21 9:30 AM EST

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To: DiViT who wrote (44573)9/8/1999 5:56:00 PM
From: John Rieman  Read Replies (1) of 50808
 
11% of US households will own at least one DVD device by the end of this year................

dvdinsider.com

The Decade of DVD - 9/8/99

US sales of DVD software will reach 57 million discs this year, worth $1.5 billion, and by 2005 more than 1.3 billion discs will be shipped annually, worth $36 billion. Annual sales of DVD devices will reach 9.1 million units in 1999, a growth rate of 128 percent, and will continue to soar, reaching 52 million by 2005. These findings are presented in "World DVD Planning Report", recently released by Strategy Analytics advisory service, "The Interactive Home.?

TV-based DVD video players are becoming the format of choice for movie fans and videophiles. DVD also will become a standard feature of home PC systems within the next year or so. New games consoles from Nintendo and Sony will also be DVD-based, DVD Audio will soon be launched for the hi-fi market, and DVD video recorders are around the corner.

The report predicts that 11 percent of US homes will own at least one DVD device by the end of 1999, and 58 percent by 2002. DVD PCs currently account for 75 percent of the installed base, but this share will fall to 59 percent by 2002 as TV-based DVD becomes more widespread.

In spite of the relatively low penetration (4 percent) of DVD video players (90 percent of households own a VCR), the shift from VHS to DVD software will happen quite rapidly, since early DVD owners are the avid movie and video enthusiasts who account for a major share of pre-recorded video sales and rentals.

Thorough analysis of historical software buying patterns combined with ownership projections for all types of DVD device has enabled the analysts to develop detailed sales projections for DVD Video, ROM, games and audio software. Video titles currently account for over 90 percent of the software market. By 2005 their share will have fallen to 43 percent, while DVD-ROM will account for 28 percent and games formats 24 percent.

"DVD is set to become the dominant packaged media platform for the next decade," says David Mercer, senior analyst with Strategy Analytics. "DVD players will be everywhere, and discs will be even more pervasive than CDs are today."

CONTACT: Strategy Analytics strategyanalytics.com
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