To: Stoctrash who wrote (48003 ) 12/24/1999 10:55:00 AM From: John Rieman Respond to of 50808
The DVD market in Europe...................................globalsources.com Quick move to DVD for home users The outlook for DVD is definitely optimistic, rising from 4 percent penetration in 1999 to 34 percent by 2002, according to market research company Strategy Analytics Ltd. Total DVD shipments this year will reach 77 million units across the United States and Europe, with more than 2 billion discs to be shipped annually by 2005. Europe lags the United States, with its corresponding figures of 11 percent penetration in 1999 and 58 percent in 2002. Growth will nonetheless be healthy, as DVD players are expected to become widespread over the next five years. Annual worldwide sales of DVD devices will reach 17 million units in 1999, a growth rate of 182 percent. By 2005, this figure will soar to 144 million. DVD PCs currently account for 75 percent of the installed base in Europe, but this will fall to 59 percent by 2002 as TV-based DVD gains ground. Additionally, DVD-based games consoles will be in 11 percent of European homes by 2002, and should help generate sales of video and games software. Although between 70 percent and 90 percent of European households still own a VCR, the shift to DVD software is expected to be rapid. Many early DVD owners are avid movie and video enthusiasts who account for a major share of video sales and rentals. By 2005, DVD-Video will account for 25 percent of European DVD software sales; DVD-ROM, 43 percent; and game formats, 25 percent. Several leading European video publishers are already publishing their own DVD titles, and the number of companies capable of DVD pressing has reached double digits. Said David Mercer, senior analyst at Strategy Analytics, "DVD is set to become the dominant media platform for the next decade. DVD players will be everywhere, and the discs will be even more pervasive than CDs today." The market will be further boosted by new DVD games consoles from Nintendo and Sony. DVD-Audio will soon be launched for the hi-fi market and DVD recorders are just around the corner. Philips is promising a 12X DVD-ROM drive for PCs in 2001, while others are developing combo drives with DVD and CD-R facilities.