DVDs to Remain Popular According to In-Stat, HD DVD and Blu-Ray to Both Win.

March 22, 2005 08:01 AM US Eastern Timezone

DVDs to Remain Popular According to In-Stat, HD DVD and Blu-Ray to
Both Win

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--March 22, 2005--New digital
delivery services are not likely to supplant the DVD business, but
rather bring digital entertainment to people by adding either
convenience or accessibility that complements what the "Packaged
Goods" can provide, reports In-Stat (http://www.in-stat.com). More
consumers want instant access to video on their TV sets, portable
devices and cell phone handsets, but DVDs will continue to be a
popular medium and will continue to experience substantial growth. The
worldwide value of all published DVD products is expected to grow with
a compound annual growth rate of 18.2%, from about $33 billion during
2004, up to $76.5 billion by 2009, the high-tech market research firm
says.

"In North America, HD DVD will jump-start a round of growth for
high-definition versions of Hollywood movies, as consumers begin
replacing their libraries of old VHS tapes and DVDs," said Gerry
Kaufhold, In-Stat analyst. "HD DVDs will appear later this year, to
take advantage of the growing installed base of HDTV sets in the U.S.
However, we expect Blu-Ray products to take off in Asia in 2006, and
in Europe and the ROW during 2007. Music videos, DualDisc products and
locally produced DVDs will account for 20% of the market value by
2009."

In-Stat also found the following:

-- Point-of-sale systems, like those from Rimage, will be connected to
secure networks that are already in place to support digital signage
applications. These kiosks will be used to "burn" DVD discs on
command, making it possible for book stores, airport shops, coffee
sellers, convenience markets and other retailers to sell DVDs without
maintaining large inventories, while providing huge convenience to
consumers.

-- Outside of North America, Blu-Ray discs will become the dominant
high-definition format, because it is backed by the "who's who" of
international consumer electronics manufacturers, and ultimately
provides more storage capacity and better features.

-- Professional quality DVD authoring packages are becoming widely
available, which will increase the market for locally produced DVDs
with all kinds of "content" from local movies, musical groups,
churches, museums, businesses and regional video producers.

-- By 2009, nearly 55% of all TV households will be connected to at
least one of the non-traditional network delivery systems such as
cable TV, satellite networks, digital terrestrial TV or broadband TV
service.

The report, "Worldwide Electronic Entertainment: Packaged Goods Value
And Network-Connected Households" (#IN0501914CM), examines the
worldwide market for consumer-oriented digital video entertainment.
The report provides in-depth discussion and analysis of five trends
that are shaping the DVD industry, and three trends that are shaping
network-connected TV services. It contains forecasts for the regional
and worldwide value of DVD markets broken out by standard DVDs,
Blu-Ray DVDs, HD DVDs and music and locally produced DVDs. It also
includes forecasts for the number of TV households in four regions
that will be connected to traditional, over-the-air broadcast TV,
cable TV, pay-TV satellite services, digital terrestrial TV and
broadband (IP-TV) video services. For more information on this report,
please visit: http://www.instat.com/catalog/Ccatalogue.asp?id=212 or
contact Erin McKeighan at 480-609-4551; .
The report price is $2,995.

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Allan