Audio Video News

DVD will continue its rapid growth over the next four years, according to a report released January 29 by international analysis firm, Jon Peddie Research. The Tiburon, CA–based research firm predicts that the future looks bright indeed for the most successful new consumer electronics technology ever launched.

In DVD Market:Players, Recorders, Media and Future, Peddie projects that there will be more than 420 million "DVD systems" in use by 2006, with growth of the format uninhibited by controversial issues such as copy protection and digital rights management. The total market for all types of DVD systems is growing at a compound annual growth rate (CAGR) of 31.4%. The market for DVD recorders is especially hot, with a 271% CAGR.

The growth of the DVD market bodes well for all associated industries, including computers, consumer electronics, automotive products, and semiconductors. DVD-related semiconductors are enjoying a 44% CAGR, and media production for DVD will exceed 1.6 billion discs by 2006—a CAGR of 159%, the report notes. DVD technology is quickly expanding from traditional standalone players to computer player/recorders (74% CAGR), set-top boxes (31%), mobile computers (47%), and automobile multimedia systems (71% CAGR). Other markets include industrial systems and appliances (74%).

The format's stupendous growth has been fueled by a sharp decline in player prices. The first DVD players appeared in Japan in 1996, and in the US the following year, at four-figure prices. By July 1998 the average price per player was $504, and reached $129 in December 2002. Entry-level players can now be found priced as low as $59.

The DVD market will continue to grow as companies find new applications for the technology. "It shows no sign of slowing down," said Dr. Peddie. "And, this year it's poised to explode again as DVD enters new markets."

The JPR DVD Market Study is available by calling (415) 435-9368 or by visiting Jon Peddie Research.