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Home arrow Market Research Findings arrow Electronics and Electrical Goods arrow DVD Recorders Get Blue Slower Than Expected
DVD Recorders Get Blue Slower Than Expected PDF Print E-mail
Written by IMS Research   
10 Jan 2007

DVD Recorders Get Blue Slower Than Expected  
 
The DVD recorder market experienced smaller than expected growth in 2006, but IMS Research estimates the volume of DVD recorders shipped worldwide in 2011 will reach 90 million units generating approximately US$32.7 billion in revenue.

Several factors define the red and blue format DVD recorder market. Rapid price erosion of red laser DVD recorders, the lack of a definitive value proposition for DVD recording in high definition (HD), and digital rights issues concerning recordable HD broadcasts have extended the practical longevity of the red laser DVD recorder market.

Analyst Mark Meza states, “We had thought the tipping-point to blue recorder formats would begin to occur sometime in late 2008 or early 2009, but blue recorder penetration isn’t expected to reach significant levels until after the end of the decade.” At a current price point of about US$3000, blue laser recorders have not generated significant demand worldwide, as securing content distribution rights seems to be the frontline issue in the escalating format war.

Wide-scale transition to blue laser DVD recorders will not occur as soon as the industry would have liked. “Low-yield diode production and limited sourcing is mostly to blame, as the majority of blue diodes were allocated to the PlayStation3 rollout in late 2006” states Meza. “This should change, however, as higher blue diode yields are expected in 2008 as Tier 2 and Tier 3 OEMs apply for blue diode production patents.”

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