Wave Issue 0307 3/14/03 Article 5-01

***Jon Peddie Research Releases DVD Market Study
(February 17)

Jon Peddie Research (JPR) has announced the completion and
availability of their 2003-2006 DVD market study, entitled "DVD
Market: Players, Recorders, Media, and Future." The report
details a 420 million-unit world market for all types of DVD
systems, including players, recorders, set-tops, PCs, etc. That's
a CAGR of 31.4% combined, and 271% for recorders alone.

The average selling price fell from $504 in July 1998 to $129 in
major retail outlets as of December 2002 with some units going
for as low as $39.

There are five recordable formats for the DVD disc: DVD Audio,
DVD+R, DVD-R, DVD-RAM, and DVD-ROM, where DVD-ROM is mass
produced for movies, games, and computer programs, and DVD+R, -R,
and RAM may be produced by consumers. DVD audio is mass produced
for music.

Two organizations exist, the DVD+RW Alliance (+R), and the DVD
Forum (-R, and RAM). Multi-function drives are being offered that
will write in most if not all of the formats, hopefully putting
an end to the confusion.

Copy protection and Digital Rights Management exists in the form
of the Content Scrambling System (CSS), and regional coding.
Hollywood wants more aggressive copy-protection, especially when
the DVD player can output the information in digital form. This
is a highly controversial issue right now

The report covers the market size and forecast for five
platforms:

- Stand alone CE devices (set top boxes), which includes Stand-
alone Consumer Electronics Players (CE-Ps), and Stand-alone
Consumer Electronics Recorders (CE Rs).
- Integrated CE (TV, DVR, A/V systems and others), which
includes game consoles and Integrated Consumer Electronic
Players, and Integrated Consumer Electronic Recorder.
- Computer, which is comprised of desktop PCs, mobile computers,
and workstations and includes Computer-based Stand-alone External
Players and Computer-based Stand-alone External Recorders.
- Automotive, which includes entertainment and other systems.
- Personal mobile, which includes players and camcorders.

In addition, the report addresses DVD associative industries,
including semiconductors, software, new technology, the eDVD,
licensing, and copy protection.

- Media production for DVDs will exceed 1.6 billion discs in
2006, a CAGR of 159%.
- Semiconductors makers will benefit greatly from this phenomenal
growth, enjoying a 44% CAGR of 44% by 2006.
- Software decoders, editors, and encoders also to benefit from
the explosion of the DVD market.

The report is supplied electronically in printable PDF form.
Printed copies are also available from JPR. Contents include 50
figures and 31 tables. The report is available on the Jon Peddie
Research website for US $2495.

www.jonpeddie.com