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DVD Adoption Increasing in Key Markets

5 Jul, 2003 By: Jessica Wolf

Though the United States continues to enjoy the deepest DVD hardware penetration in the world, other key markets over the next few years will experience growth rates alongside the hefty American market, according to a study from Understanding & Solutions.

The United States makes up 63 percent of the global DVD market, according to the study, and boasts the highest player penetration (DVD-capable players, including DVD-ROM drives abd DVD-enabled game consoles) -- 40 percent in 2002, with a forecast of 60 percent by the end of 2003 and nearly 170 percent penetration by the end of 2007 (more than one in many homes). Understanding & Solutions predicts the United Kingdom will have about 150 percent penetration by 2007; France will land at about 130 percent; Germany will have 110; and Japan, which lags the rest of the world because of high software and hardware prices, will reach 70 percent penetration.

At the end of 2002, there were 93 million DVD-capable players in the United States, including DVD-ROM drives and DVD-enabled game consoles. There were 15 million players in use in the United Kingdom, 13 million in Germany and 12 million in France, the study found.

Of the 35 million DVD players in use in Japan by the end of 2002, about 25 million were DVD-ROM drives or enabled game consoles. According to the study, 18 percent of PlayStation 2 owners in Japan said they use the console mainly to watch DVDs -- only two percent of PS2 owners in the U.S. and in the U.K. said they use the game console mainly for DVD viewing. None of the PS2 owners surveyed in France said they mainly watch DVDs on the PS2.

As in the United States, DVD hardware prices around the world are dropping, especially in Western Europe, where the entry-level DVD players costs 85 euros ($98) and should drop to 59 euros ($68) by 2007, according to the report. The entry-level player for Western Europe in 2000 was 160 euros ($184).

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