Market Analysis of the DVD Sector
Market Analysis of the DVD Sector 5.1 Market Analysis Since the early 1990’s the technological world has advanced at such a pace that is often hard to gauge the usage or popularity of a specific piece of technology. ... DVD stands for ‘Digital Versatile Disc’ and its target audience is strongest from the young to the middle-aged and is fairly un-age specific within that. Each group – based on modern evolution - have their own economic factors compelling them to purchase DVD products. ... These stores are already multimedia stores and exploit the new generation of media consumers – who are already into music, games, films and phones – by flooding the DVD market with deals. ... Whereas the Mp3 has challenged the very model of the Music Industry, DVD has enjoyed a relatively trouble free entry into the market place. ... There are four areas where DVD has excelled; Film, Computer Games, Storage and Audio which, with reference to competing formats will form the basis of this analysis. DVD video is helping the video industry to rapidly become the leading industry in the home entertainment sector. ... The DVD format is now out-competing the VHS format with sales of 154m units in 2002 – a 111% increase since 2001 – over 74m unit sales for VHS – which fell 13% (www. ... This can go two ways in the future; one, DVD-re-writable hardware becomes cheap enough and has an intuitive enough system to be mass-usable replacing the video cassette recorder; Two, Digital Television and the Internet combine to give much more viewing on demand, enabling the user to recall already broadcast shows for viewing in their own time. In-Stat/MDR’s report published in January 2003 predicts that by 2006 “the total worldwide market for all types of DVD systems (players, recorders, set-tops, PCs, etc) will be over 420m units” and although at first slowly the majority of consumers worldwide will make the switch to DVD recording. Michelle Abraham, a senior market Analyst for InStat/MDR says “The DVD recorder Market’s rise will be propelled by falling prices” which although inevitable, will have to correspond with good marketing campaigns to educate the consumer in the technology and its uses. ... As for the future of DVD-Video two possibilities stand out, the continuation in refinement of the DVD and streaming technologies. HD-DVD (High Definition/Density DVD) was born from the need to offer high definition movies and to be able to record high definition TV programming. The DVD Forum decided that larger disc capacity would be needed and the technology firms involved advanced their ideas for formats. ... com) more for the home recording market.