Analysts Suggest 2001 Unit Sales Will Double Last Year’s
Figure
PORT WASHINGTON, NEW YORK, September 24, 2001 – According
to leading marketing information provider NPD INTELECT®
Market Tracking, almost 4.3 million Digital Video Disc (DVD) players
have been sold year-to-date, (Jan. – July 2001), compared to 6.7
million units sold in all of 2000. NPD INTELECT analysts suggest DVD
player sales for 2001 could reach 13 million units, double last year’s
unit sales figure.
Annual Unit Sales of DVD Players
|
Year |
Units (Millions) |
|
1998 |
697,432 |
|
1999 |
3,086,686 |
|
2000 |
6,664,807 |
|
2001 (Jan. – July) |
4,257,913 |
Source: NPD INTELECT
"It took 25 years for the VCR to become ubiquitous in the
American home. By current projections, it should take the DVD no
more than 10-12 years," said Tom Edwards, NPD INTELECT analyst.
The main drivers for the surge in sales are a reduction in the
average selling price and improved picture quality when compared to
VCR technology. The average selling price fell to $192 in July 2001,
compared to $504 in July 1998. Also, DVDs feature 550 lines of
resolution vs. 240 lines of resolution for videocassettes. Other
reasons for the popularity of DVDs include:
- Superior sound (Dolby Surround vs. VHS stereo sound)
- DVDs are more durable and less vulnerable to damage (DVDs do
not degrade over time)
- Searching is substantially faster, and DVD discs never need to
be rewound.
- DVD movies may include special features such as trailers,
director and/or actor commentaries, outtakes, etc.
Interestingly, consumer demand for the DVD player has produced a
ripple effect among the home theater categories. With the purchase
of DVD players, many consumers are upgrading their televisions and
their sound systems, thereby increasing the sales of other consumer
electronics such as digital television sets and PVRs (Personal Video
Recorders).
"Despite the tentative economic consumer outlook, soaring sales
of DVD players have not yet hit their potential. Recordable DVD is
just becoming available. The future will see DVD players with PVRs
coming into play to combine the best of all worlds -- recording of
broadcast, cable or satellite programming, plus the enjoyment of
purchased or rented video software. Just like DVD players, PVRs will
eventually decrease in price, giving consumers more choices when it
comes to recording and opening up another space in the American
living room. Add broadcast signal delivery, and you may never have
to leave the living room," added Edwards.
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