DVDs to Remain Popular According to In-Stat, HD DVD and Blu-Ray to Both Win.

SCOTTSDALE, Ariz. -- New digital delivery services are not likely to supplant the DVD business, but rather bring digital entertainment to people by adding either convenience or accessibility that complements what the "Packaged Goods" can provide, reports In-Stat (http://www.in-stat.com). More consumers want instant access to video on their TV sets, portable devices and cell phone handsets, but DVDs will continue to be a popular medium and will continue to experience substantial growth. The worldwide value of all published DVD products is expected to grow with a compound annual growth rate of 18.2%, from about $33 billion during 2004, up to $76.5 billion by 2009, the high-tech market research firm says.

"In North America, HD DVD will jump-start a round of growth for high-definition versions of Hollywood movies, as consumers begin replacing their libraries of old VHS tapes and DVDs," said Gerry Kaufhold, In-Stat analyst. "HD DVDs will appear later this year, to take advantage of the growing installed base of HDTV sets in the U.S. However, we expect Blu-Ray products to take off in Asia in 2006, and in Europe and the ROW during 2007. Music videos, DualDisc products and locally produced DVDs will account for 20% of the market value by 2009."

In-Stat also found the following:

--Point-of-sale systems, like those from Rimage, will be connected to secure networks that are already in place to support digital signage applications. These kiosks will be used to "burn" DVD discs on command, making it possible for book stores, airport shops, coffee sellers, convenience markets and other retailers to sell DVDs without maintaining large inventories, while providing huge convenience to consumers.

--Outside of North America, Blu-Ray discs will become the dominant high-definition format, because it is backed by the "who's who" of international consumer electronics manufacturers, and ultimately provides more storage capacity and better features.

--Professional quality DVD authoring packages are becoming widely available, which will increase the market for locally produced DVDs with all kinds of "content" from local movies, musical groups, churches, museums, businesses and regional video producers.

--By 2009, nearly 55% of all TV households will be connected to at least one of the non-traditional network delivery systems such as cable TV, satellite networks, digital terrestrial TV or broadband TV service.

The report, "Worldwide Electronic Entertainment: Packaged Goods Value And Network-Connected Households" (#IN0501914CM), examines the worldwide market for consumer-oriented digital video entertainment. The report provides in-depth discussion and analysis of five trends that are shaping the DVD industry, and three trends that are shaping network-connected TV services. It contains forecasts for the regional and worldwide value of DVD markets broken out by standard DVDs, Blu-Ray DVDs, HD DVDs and music and locally produced DVDs. It also includes forecasts for the number of TV households in four regions that will be connected to traditional, over-the-air broadcast TV, cable TV, pay-TV satellite services, digital terrestrial TV and broadband (IP-TV) video services. For more information on this report, please visit: http://www.instat.com/catalog/Ccatalogue.asp?id=212 or contact Erin McKeighan at 480-609-4551; [e-mail]. The report price is $2,995.

About In-Stat

In-Stat (www.in-stat.com) is the leading provider of actionable research, assessments and market forecasts of semiconductors and advanced communications equipment and services. Our forecasts, analysis, and insights are derived from both a deep technology understanding and a unique research methodology, which examines each segment of the value chain for each market. Technology vendors, service providers, technology professionals and market specialists, worldwide, rely on In-Stat's tenured, experienced staff and in-depth research to support critical technology, product and success decisions.

In-Stat is a strategic segment of the $8 billion Reed Elsevier global information network, with access to an expansive worldwide electronic network, extensive technology databases and well-informed personnel. In-Stat analysts gain exceptional insight into geographic marketplaces and specific technologies within markets such as electronics, cable and wireless. As a member of Reed Business Information, In-Stat is a division of the largest business-to-business publisher in the United States.