Recorded media forecast: DVD up, CD & VHS down

DVD is becoming more and more populair these days. While the replication of CD and VHS is going down the replication of DVDs is a growing market:



DVD-Video is still riding a strong crest of production, while CD Audio, CD-ROM and VHS are beginning respective descents after long-entrenched positions as format standards, explained Cambridge principal Dick Kelly. CD-recordable growth has slowed, but still on the rise through 2002.

He reported that replicators in North America produced in 2001 435 million DVD discs, but had capacity for 765 millions discs. This year, based on interviews with replicators, he projects 760 million DVD discs to be replicated against a capacity for 955 million discs.

"Five replicators produce over 90 percent of the work," he said, adding that he expects further consolidation this year so that four companies will account for the lion's share of replicated DVDs, with overflow and niche customers making up the difference.

DVD-Video is providing 86 percent of the work, he pointed out, noting slow DVD-Audio and DVD-ROM demand. In addition, low margins and licensing fees for patent usage are also negatively impacting on DVD replication, Kelly observed.

All with all there are a lot of CDs, DVD and videotapes produced. And the end of VHS is nearing I guess we all already knew that. I'm just wondering when they are going to say that the loss of sold VHS tapes is due piracy...

Source: Medialinenews.com

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