DVD discs in WalMart & Target in June?
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Optical disc media market analysis...........
twice.com
Recording Media Association Announces First Optical Study - -May 14, 1998
By Martha McDonald
Worldwide replication of optical media is expected to grow from 6.4 billion in 1997 to 6.9 billion this year and to continue this
pattern through 1999, when it will peak at 7.5 billion, according to a new study being published by the International Recording
Media Association (IRMA), formerly known as the ITA.
After 1999, the total is expected to level off and remain flat at 7.4 billion units through 2002. The study also reports that North
America accounts for the largest percentage, 40%, of the world's total optical disc replication and produced 2.46 billion discs
in 1997.
The 200-page study, Worldwide Optical Media Intelligence, is the first optical study published by the association, which is
based in Princeton, N.J., and has 450 members. IRMA executive VP Charles Van Horn expects there will be other studies
and stated, "My view is it will be continued."
The study also found that CD-audio replication in North America increased 4% from 1996 to 1997, reaching 1.49 billion units
last year. It is expected to show only a 1% increase this year, to 1.5 billion -- peaking at 1.6 billion in 1999 and then declining
to 1.3 billion by 2002, due to competition from DVD-audio.
CD-ROM replication, on the other hand, is showing strong increases. North American production is expected to increase
12% this year, reaching 1.1 billion units. CD-audio and CD-ROM combined are expected to reach 2.610 billion units in
North America, up 5% from 2.482 billion in 1997.
Dick Kelly, president of Cambridge Associates of Stamford, Conn., the company that conducted the study for IRMA, says
CD-R is the fastest growing category. He puts worldwide production at 380 million units this year, up 85% from last year's
205 million. This is expected to produce revenues of $495 million this year, up from $468 million in 1997, as price erosion
continues. Kelly put North American DVD-video disc production at 11.5-12 million units in 1997 and noted that only 3.5
million sold through at retail. He estimated that DVD-video and DVD-ROM production will total 35 million this year, and
CD-ROM will see a slowdown as DVD-ROM picks up.
The study will be available to IRMA members in June for a fee of $9,500, which includes an executive briefing session. The
price for non-members is $12,500. |
