DVD Media To Hold 15% Share In '03: Maxell

Fair Lawn, N.J.— Blank DVD media sales should account for 15 percent of total blank video media sales in 2003, predicted blank media maker and marketer Maxell Corporation of America. This sales direction is expected to ignite sales growth in the overall video category for the first time in a decade, Maxell said.

"This trend mirrors the effect that new digital technologies have had on the audio and camcorder media categories, where these have accounted for rapidly increasing percentages of the business and have fueled growth dramatically," said Maxell VP/marketing Peter Brinkman.

For example, Brinkman cited CD-Rs going from 24 percent of the audio business in 2000, to more than 60 percent in 2002. Likewise, he said, camcorder media, MiniDV and Digital 8 tape went from 18 percent of the business in 2000, to more than 35 percent in 2002. "And both categories are growing very strongly at nearly 25 percent and 30 percent, respectively," he said.

Maxell predicted video media category growth of over 3 percent in 2003, reversing a trend that projects VHS video category sales will decline by nearly 8 percent in 2002.

Maxell said blank DVD media demand is being prompted by increased sales of DVD player/recorders, which the company said are projected to increase to nearly 100,000 units in the fourth quarter of 2002. This is up from 21,000 units in this year's first quarter. Total hardware sales of computer and video are anticipated to top 700,000 units in the fourth quarter, said Maxell.

"Concerted efforts by hardware and software manufacturers to educate the consumers about recordable DVD, and more focused promotional programs by manufacturers and retailers are raising consumer awareness and beginning to drive sales," said Don Patrican, Maxell executive VP/marketing and sales.

"We expect that be the end of 2004, DVD media sales will account for almost 30 percent of total blank video sales, and continue to grow," he said.

Maxell also expects DVD hardware pricing will continue to decrease in 2003, and that hardware makers will continue to alleviate consumer confusion over competing DVD formats with drives and player/recorders that are compatible with multiple formats.

"Digital formats have invigorated the audio and camcorder recording categories, producing overall category sales growth, and we expect that DVD will do the same for the video category," continued Brinkman.

"But while multiple formats have caused some confusion among the trade and consumers," he said, "we think 2003 will be the breakout year for DVD, leading the way toward a positive year for the video category."