To: DiViT who wrote (38585 ) 1/26/1999 12:59:00 PM From: DiViT Respond to of 50808
China: Plans laid to stave off chaos in DVD market 01/25/99 China Daily Copyright(C) 1999 CHINA DAILY While anticipating a boom in DVD (digital versatile disc) sales soon, China is taking care to avoid a repetition of the trend in the current VCD (video compact disc) market. The DVD offers higher video and audio quality, greater convenience and convergence and inter-operability between consumer electronics and computer environments. China's DVD market, after nearly three years of "warming-up," is expected to see sales of 1 million units in 1999. Experts predict that demand will reach much higher levels in the next few years. However, the overall development of the market relies heavily on an advance industrial plan whose main aims are to prevent the mushrooming of manufacturing facilities and to fight against piracy. Last Monday, more than 60 domestic consumer electronics companies and software developers and a group of world-famous companies like Sony, Philips and Warner Bros attended an international conference in Beijing to discuss the issue. The conference was sponsored by the China Audio Industries Association and several other institutes. The participating companies touched on a wide range of topics related to DVD development in China and possible co-operation between local and foreign companies. Most companies sent high-ranking executives to the event. Although no concrete outcome was reported from the conference, it provided a forum for companies to get connected with each other and deal with possible problems by joining forces. China's DVD development relies on co-operation between local and foreign companies and between hardware and software companies, said Ding Yuankang, executive deputy secretary-general of the China Audio Industries Association.Over 30 companies have begun production of DVD players in China. Prices of DVD players are expected to drop significantly over the next year or two. In terms of software, China has eight plants making DVD discs. To promote the development of China's DVD industry, more than 30 domestic companies, research institutes and universities have joined together to take universal measures to speed up development of DVD products and key components for DVD players.