Strategy Analytics has just released its latest research results in the DVD field, and although it appears to be overly optimistic, it shows just how much of a force DVD has grown to be, and believe me, when Playstation 2 hits American shores this October it will open flood-gates like we have never seen before.

According to “Strategy Analystics”, manufacturers will increase worldwide shipments of set-top DVD players by 300% this year. Retail revenues across the three major regions (US, Europe, Japan) will rise by 220% to $7bn. This year’s market is being driven by the launch of DVD-based games consoles, and DVD recorders will fuel the momentum from 2001 onwards. These conclusions are presented in a study entitled World DVD Planning Report and published recently by Strategy Analytics within its strategic advisory service, The Interactive Home.

The report also concludes that DVD will become the standard home video format within five years, largely replacing VHS cassettes. DVD video disc shipments this year will reach nearly 400 million units, and continue to soar to 2.3 billion by 2005, worth $44bn. Including other DVD formats (games, ROM, audio), shipments will reach 3.7bn by 2005, worth nearly $100bn.

The report shows that rising hardware sales are being offset by falling prices. Chinese-sourced players in particular are having a noticeable impact.

Overall consumer sales of DVD devices (set-top, PC, other) will reach 46 million units this year, including 21 million in the US and 17 million in Europe. Basic DVD players will account for two-thirds of set-top shipments in 2000, the remainder being DVD games consoles. The US leads the way, with expected sales of 9.0 million players, followed by Europe, with 4.9 million.

By the end of 2000, 14% of US and 5% of European homes will own at least one TV-based DVD player. In addition, many homes are acquiring DVD-capable PCs, so that overall household access to DVD is 25% in the US and 14% in Europe.