A DVD for Every Home?
David Mercer, Senior Analyst with Strategy Analytics, authors of the report, says that "DVD is set to become the dominant packaged media platform for the next decade. DVD players will be everywhere, and discs will be even more pervasive than CDs are today." The report points out that TV-based DVD-Video players are becoming the format of choice for movie fans and videophiles, and that DVD is also expected to become a standard feature of home PC systems within the next year or so. New games consoles from Nintendo and Sony will also be DVD-based, DVD-Audio will soon be launched for the hi-fi market, and DVD-Video recorders are around the corner.
The report predicts that 11% of US homes will own at least one DVD device by the end of 1999, and 58% by 2002. DVD PCs currently account for 75% of the installed base, but this share will fall to 59% by 2002 as TV-based DVD becomes more widespread. "In spite of the relatively low penetration (4%) of DVD-Video players (90% of households own a VCR), the shift from VHS to DVD software will happen quite rapidly, since early DVD owners are the avid movie and video enthusiasts who account for a major share of pre-recorded video sales and rentals."