BW1038 JAN 08,1997 4:59 PACIFIC 07:59 EASTERN
( BW)(COWLES-SIMBA) DVD will generate $74.1 million in movie and
software title revenue in 1997
Business Editors
COSTA MESA, Calif.--(BUSINESS WIRE)--Jan. 8, 1997--New Digital
Versatile Discs scheduled to hit the North American market this
spring will generate $74.1 million for multimedia title publishers
and movie studios this year, according to Digital Versatile Disc
1997: Market Assessment, Competition and Opportunities published by
Cowles/Simba Information.
While DVD was first developed primarily as a new movie player, it
has significant implications as a replacement to the CD ROM. The
DVD, which is identical in size and shape to the compact disc,
represents the next major leap in multimedia storage since the
introduction of the audio CD in the early 1980s. Each disc can hold
a digital quality, full-length feature film, or up to 17 gigabytes of
computer data.
"DVD growth will be slow in 1997 because of its spring launch,"
says Rob Agee, author of Digital Versatile Disc 1997. "While
shipments of DVD players in computers will outpace stand-alone DVD
units for movie playback, movies titles will generate more revenue
dollars than multimedia titles in the first year."
DVD is advertised by manufacturers and software developers as a
format that will unify the PC and TV. However, already there has
been some pushing and pulling between the computer and the consumer
electronics industries. Stand-alone players for the TV and DVD ROM
players for the PC are evolving as different products that share the
same background. "Because of the utility of this format,
manufacturers are likely to foster the successful implementation of
both DVD video and DVD ROM even if they develop separately," adds
Agee.
"While consumers are unlikely to automatically abandon their VCRs
in favor of DVD, the convenience and quality of the format,
widespread backing by consumer electronics manufacturers, and the
proliferation of digital video give DVD the potential to invigorate
the video industry."
Because of DVD's backward compatibility with CD ROM, computer
manufacturers will begin shipping the devices as a value added
feature to their high end computer lines. "In the year 2000, nearly
all computer manufacturers are likely to abandon CD ROM drive
production for personal computers in favor of DVD," said Agee.
Digital Versatile Disc 1997 analyzes the DVD platform, its market
potential, and its impact on the movie and multimedia businesses.
For more information or to order copies of the study, contact Laurie
Spens at (203) 358- 4246, or by e-mail at laurie_spens@simbanet.com.
Cowles/Simba's California-based television group also publishes the
newsletter Interactive Television Report and research reports: Cable
Modems - Business Dimensions and Market Opportunities; Wireless Cable
1997; The Future of Cable - Emerging Revenue Opportunities.
Cowles/Simba Information (http://www.simbanet.com) is a leading
provider of news, analysis and market research reports about the
media and information industry. Cowles/Simba Information is a unit
of Cowles Business Media in Stamford, CT.
--30--al/ny*
CONTACT: Rob Agee, 714-557-8800
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED
INTERACTIVE/MULTIMEDIA/INTERNET TELECOMMUNICATIONS PUBLISHING
REPEATS: New York 212-752-9600 or 800-221-2462; Boston 617-236-4266 or
800-225-2030; SF 415-986-4422 or 800-227-0845; LA 310-820-9473
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