Abstract
New formats for DVDs will jump start another round of video replacement by consumers. In North
America, HD DVD will ship later this year, and will become the dominant new format. Blu-Ray
equipment and discs will become popular in Asia, Europe and the ROW. By having HD DVD in North
America, and Blu-Ray elsewhere, Hollywood will once again gain control of geographic distribution.
Rimage has a system that permits kiosks to securely "burn" DVD discs at the Point of
Sale, and on-line "download and burn" services will provide new ways for consumers to get
their hands on DVD movies, music videos, and non-traditional visual productions.
By 2009, we believe that nearly 55% of all TV households will be connected to Cable TV (analog or
digital), Satellite Pay-TV services, Digital Terrestrial networks, or emerging Broadband TV
services.
Sales of Hollywood movies on Standard DVDs will experience slowing growth, but the emergence of
new formats and new "content" coming to DVD will drive the value of the total market
forward. Worldwide value of all DVD discs will grow from about US$33 Billion during 2004, up to
US$76.5 Billion during 2009, a Compound Annual Growth Rate of 18.3%
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