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Study: Format wars won't hinder DVD sales

Sales of published DVD products are set to rise to $76.5 billion by 2009, new study says.

    Published DVD products will rake in $76.5 billion worldwide in 2009, up from about $33 billion last year, In-Stat/MDR said Tuesday.

    That means the battle over next-generation DVD formats won't slow sales, the market researcher said.

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    The HD DVD format--which allows for high-definition discs that hold up to 30GB of data--will lead in the near future, the market researcher said. An added benefit of HD DVD is that the technology is backward-compatible with current DVDs.

    But Blu-Ray products will start gaining in 2006, spreading from Asia to Europe and the rest of the world in 2007, In-Stat said. Blu-Ray discs can store up to 50GB of data; by comparison, current DVDs can store up to 9GB for dual-sided discs, roughly 4.5GB per side.

    In North America, the researcher said, consumers will start replacing their libraries of old videotapes and DVDs with high-definition discs, fueling HD DVD growth.

    Elsewhere, Blu-Ray discs will become the dominant high-definition format because of support from leading gear makers, In-Stat said.

    "High-definition DVDs will appear later this year to take advantage of the growing installed base of HDTV sets in the U.S.," Gerry Kaufhold, an analyst at In-Stat, said in a statement. "Music videos, DualDisc products and locally produced DVDs will account for 20 percent of the market value by 2009."

    In-Stat said point-of-sale offerings such as those by Rimage will facilitate "burning" DVD discs from kiosks, making it possible for bookstores, airport shops and other retailers to sell DVDs without keeping inventories.