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Entertainment Headlines
Monday May 3 1:09 AM ET
DVD boom cuing up
By Marc Graser
HOLLYWOOD (Variety) - Lower prices, growing consumer demand and the
introduction of recordable DVDs could boost the number of players in homes to a
better-than-expected 3.5 million by the end of the year, according to a new report.
Earlier projections from industry watchers DVD Video Group and the Consumer
Electronics Manufacturers Assn. anticipated over 2 million players to make their way
into homes this year, but investment firm Nationsbanc Montgomery is more bullish.
''Our most recent industry checks show expectations for DVD unit sales have
increased due to strong carry-over demand from last Christmas,'' said Doug Gordon,
managing director of Nationsbanc's consumer hardline retail division. ''We believe ...
that this is a real product cycle and that it has a lon Nationsbanc's consumer hardline
retail division. ''We believe ... that this is a real product cycle and that it has a lon g,
long, long way to go.''
He added that unit demand will ''continue to be strong'' because of broadening
consumer acceptance, increased availability of the product, rental availability in
national video chains and a projected price point of as low as $199 for players this
Christmas.
Player sales also are expected to be fueled this gift-giving season by the introduction
of recordable DVD devices from major manufacturers for as low as $250.
The report went on to say electronics retailers Best Buy and Circuit City are expected
to benefit the most from the surge in sales.
DVD hardware and software sales already account for 2.5% of total sales for the
Best Buy chain, while Circuit City attributes 1.5% of its sales to the technology, the
report said. Best Buy controls nearly 25% of the market share for the DVD category
among electronics retailers.
The report said nothing about the future of floundering pay-per-view rival Divx, which
lags far behind DVD in hardware and software sales. Circuit City owns a majority
stake in the technology.
Reuters/Variety |
