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DVD Recorders Coming On Strong, Players Subsiding (19/2/2004)

DVD recorders are expected to slowly take over for DVD players, in standalone products as well as in combination products such as DVD+VCR, DVD+HTiB, and TV+DVD, reports In-Stat/MDR. In 2004, the first DVD recorder combination products are entering the market. There are several DVD recorder+VCR and Home Theater in a Box (HTiB)+DVD recorder systems scheduled to ship in 2004. The high-tech market research firm finds that in 2003 alone, DVD recorder unit shipments increased over 200%, as more manufacturers entered the market and the prices declined. As more products come on to market, over 50 million DVD recorders are expected to ship worldwide in 2007.

"However, there is still a lot of life in the DVD player market," says Michelle Abraham, a Senior Analyst with In-Stat/MDR. "Automotive DVD systems and portable DVD players are expected to grow over 30% annually for the next five years. In addition, while households in Europe, North America, and Japan will convert to DVD recorders, markets like China will continue to consume DVD players." DVD player unit shipments in 2003 were 98 million units and will top 100 million in 2004. The total market will then begin its decline in 2005, though the portable and automotive segments will still continue to grow.

In-Stat/MDR also reports that:

* DVD players are commonly available in Europe and North America for less than $50. By 2007, prices will be under $30 on a regular basis.

* DVD recorder prices will drop below $199 for the holidays in 2004. Besides hard drives, step-up features on DVD recorders will include Electronic Program Guides (EPGs), and network connections in 2004, with DTV tuners and DVD-Audio and SACD playback added in 2005.

* Blue laser player/recorders will become mainstream products, but not before 2008. The two competing blue laser formats will finalize their read-only formats in 2004, so In-Stat/MDR expects more product introductions in 2005.

The report, "DVD: Recorders Coming On Strong, Players Subsiding" (#IN040708ME),contains five-year worldwide unit shipment, ASP, and revenue forecasts for DVD players and recorders by region. Five-year unit shipment forecasts for SACD, DVD-Audio, connected DVD players, DVD recorders with hard drives, DVD recorders with DTV tuners, connected DVD recorders, and blue-laser recorders are part of the report, as are five-year forecasts for DVD player and DVD recorder bill of materials.

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