Worldwide DVD-VIDEO, DVD-ROM Sales are Accelerating, New InfoTech Report Finds
WOODSTOCK, Vt.--(BUSINESS WIRE)--June 15, 1998--Benefiting from a rapidly expanding catalog of movie titles and falling hardware prices, DVD-Video player sales are on pace to increase over 140% to 1.2 million units worldwide in 1998 and DVD-ROM drive sales should exceed 6.5 million units, according to InfoTech's new DVD Assessment, Third Edition.
Based on the current release rate, InfoTech projects that worldwide DVD-Video titles in print will exceed 3,000 by year-end 1998, up from 732 in 1997. According to InfoTech Chairman and CEO, Julie B. Schwerin, "The motion picture industry has cast a strong vote of confidence in DVD-Video by investing in new titles ahead of the installed base curve, despite the advent of alternative formats like DIVX."
In the PC segment, OEM prices for a complete DVD-ROM solution are trending towards $100, suggesting that DVD-ROM drives will be available on many mid-priced PC models by year-end. By late 1999, DVD-ROM will begin to replace CD-ROM drives in sub-$1,000 systems as well. InfoTech forecasts a worldwide installed base of almost 70 million DVD-ROM drives by 2000.
PC industry demand will create economies of scale for shared components, helping move DVD-Video players towards mass-market pricing by 2000. As prices drop, DVD-ROM is also expected to migrate to the TV set-top in 1999, in the form of DVD-ROM equipped videogame consoles and Internet appliances, with sales of 5.5 million units projected for 2000.
"1998 is a building year for the DVD industry, when all of the required elements for success-competitive pricing, title availability, advertising, and distribution-are being put into place," Schwerin said. "Companies that invest now should be well positioned to reap the rewards in 1999 and beyond."
DVD Assessment, Third Edition is the definitive study of the worldwide DVD industry. It examines digital video and audio, desktop computers, and interactive TV set-top devices, including videogames-with comprehensive sales data by region through year-end 1997, and forecasts through 2005. DVD Assessment, Third Edition ($1295 US) is available by calling InfoTech at +1.802.763.2097 or via the Web at infotechresearch.com.
Headquartered in Woodstock, Vermont USA, InfoTech is an independent market research and consulting firm specializing in quantitative analysis and forecasting of the electronic publishing, information technology, and interactive entertainment industries.
EDITORS: Chart available; Schwerin available for interview.
CONTACT: InfoTech Jason Aldous, 802/763-2097 info@infotechresearch.com
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