STRATEGY ANALYTICS: DVD's time has come
Presswire - May 06, 1998 14:25
--Home PC will be DVD platform of choice, according to latest research
European shipments of DVD players will reach 1.2 million units in 1998, compared to only negligible shipments in 1997. The
arrival of DVD-ROM drives in new 400MHz PCs will be the major factor behind this market growth.
These findings are taken from the Multimedia Market Forecast recently released by Strategy Analytics (formerly BIS Strategic
Decisions), the leading technology marketing consultancy, within its strategic advisory service, "Emerging Consumer Products
and Services", which predicts new consumer technology market opportunities on behalf of major industry players.
"The success of DVD hinges on the home PC market," says David Mercer, Emerging Consumer Technologies Analyst at
Strategy Analytics. "DVD Video may achieve modest success, but its potential is limited. By contrast, millions of home PC
buyers will choose DVD-ROM simply as a better CD-ROM."
DVD (Digital Versatile Disk) reached the European market in small quantities during 1997, but shipments of both DVD
Video and DVD-ROM were limited by lack of software. Major players have now begun a "soft launch" of DVD Video, and
DVD-ROM is beginning to appear in high end home PCs.
1998 will be the first year of significant DVD sales in Europe. Strategy Analytics sees shipments of DVD Video players
reaching 50,000 units, but demand for DVD-ROM drives will soar to 1.1 million units, driven by second half sales of new,
faster PCs incorporating the new drives along with MPEG2-decoding software. DVD-ROM will then quickly become
standard fitment in home PCs.
This emerging home multimedia platform will encourage interactive software developers to consider DVD-ROM versions as
enhancements of CD-ROM titles. DVD will eventually lead to a new era of sophisticated edutainment and games titles which
incorporate genuine full-motion, full-screen video and high-quality 3D graphics.
DVD Video will continue to appeal to the videophile market, but sales will plateau at around 200,000 units a year until DVD
recorders arrive in around 2002. This will lead to the eventual replacement of the VCR in the second half of the next decade.
"DVD will be successful, but not as its creators originally intended," says Mercer. "Multimedia is where the real opportunity
lies. Video will have to wait its turn."
Key European Market Forecasts
Total DVD Drives (DVD Video and DVD-ROM combined) Shipment Forecasts (Millions Units) 1997 - negligible 1998 -
1.2 1999 - 4.8 .. 2005 - 22.8
DVD Video Players - Shipment Forecasts (Millions units) 1997 - negligible 1998 - 0.05 1999 - 0.14 .. 2005 - 2.5
DVD-ROM Drives - Consumer Shipment Forecasts (Millions Units) 1997 - negligible 1998 - 1.1 1999 - 4.7 .. 2005 - 20.3
Editor's note: More detailed data and charts for specific technologies or regions are also available. Please contact Strategy
Analytics for more information.
Company Background: Strategy Analytics, formerly BIS Strategic Decisions, provides information and insights which help
competitors develop strategies in consumer electronics and media, communications, personal computing, automotive
electronics, and enabling technology business. Working on a truly global basis, Strategy Analytics delivers planning support in
published and consulting formats to meet the decision support needs of clients in Europe, North America, Japan and the Far
East.
CONTACT: David Mercer Tel: +44 (0)1582 405678 e-mail: dmercer@strategyanalytics.com
newsalert.com |
