Video on demand competition coming as DVD sales peak

December 8, 2005

News from
down under! Over at Australian IT today, we can read that word is out saying DVD
movies are peaking, whilst the PC industry is "champing at the bit" to provide
digital download alternatives for those hungry for video on demand.

"The PC
industry is champing at the bit to provide downloaded movies that might
compete with DVD sales, and Pay-TV services want to add movies to their
video-on-demand services, to their new disk-drive-equipped set-top boxes,
and to their emerging high-definition TV services," said Gerry Kaufhold,
an In-Stat analyst and author of the report.

DVD sales growth is slowing, according to several
recent reports. A study released by Adams Media Research in October
forecast DVD sales of about $US17.3 billion ($23.1 billion) this year, a
12 per cent rise from 2004. Adams forecast a 9 per cent rise to $US18.9
billion in 2006.

The industry also is grappling with a scuffle over
what technology will underpin the new wave of high-definition DVDs, the
report said.

"The migration to next-generation high-definition
optical disc formats is not going smoothly," Mr Kaufhold said.

Wow, thanks for the news flash there
Kaufold concerning the HD discs on the horizon. But, we are still hoping
for the best for that crazy blue laser. In the meantime though, keep the
alternatives coming! If there is one thing we like here at CD Freaks, it's
alternatives.

Source: Australian IT