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DVD Recorders to Grow More Than 69 Percent by 2007

29 Aug, 2003 By: Erik Gruenwedel

Citing ongoing consumer demand for the DVD format and ever-evolving hardware, the DVD recorder market is expected to grow more than 69 percent by 2007, according to a report by Semico Research Corp.

The study, which included polling OEM manufacturers and semiconductor component suppliers, says shipments will reach 48 million units with sales topping $8.3 billion.

This year, 3.5 million DVD recorders will be sold, resulting in more than $1.4 billion in sales, according to Jason Blackwell, director of end-market research for the Phoenix-based company.

“We looked at what would grow the market, including penetration and uptake rates,” said Blackwell.

The study, which didn't differentiate among the competing DVD-R/-RW, DVD+R/+RW and DVD RAM standards, was based on the premise that DVD recorders will ultimately replace VCRs in most homes, according to Semico analyst Adrienne Downey.

“I think people are sick of dealing with tapes and rewinding and fast forwarding them,” Downey said.

She said entertainment industry concerns about the illegal copying of movies are legitimate, but she doubts that piracy will ultimately fuel sales.

“I don't think people see [DVD recorders] as a means to record movies as much as they see it as a VCR replacement,” she said. “I don't think that is going to [negatively] impact this market. I think the interest is coming from a different direction.”

The report said that as DVD recorders add internal hard drives for memory and improve functionality by adding user menus and the ability to share media across all players, computers, digital camcorders and other devices, they will encroach upon a personal video recorder market controlled by TiVo and Replay TV.

“The archiving capability is a key advantage over currently shipping [DVD recorders],” Blackwell said.

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