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DVD+RW
Recorders flooding market at ever lower prices
November 24, 2003
Consumer Electronics Daily
Although it was Johnny-come-lately
to the home DVD-recorder derby, in pricing and SKUs the
DVD+RW format is quickly outpacing
its early-entry DVD-RAM and DVD-RW rivals in the run-up
to year-end holiday selling. And, with prices already
tracking as low as $299 on the U.S.
retail scene, DVD+RW is shaping up to be the
odds-on favorite in the stretch run in the CE industry's increasingly
important 4th quarter. That performance is being
replicated on the PC side, where DVD+RW burners and combos
with DVD-RW capability have broken the $100 price point
for add-ons and dominate
the turf for build-ins even in sub-$1,000 PCs. Meanwhile,
DVD-RAM in PCs increasingly seems
an also-ran, selling as an aftermarket add-on
only and virtually never seen as a build-in with mass-marketed
PCs.
In a pre-Thanksgiving "Black Friday" count,
DVD+RW home decks were available from
8 brands representing at least a dozen SKUs. Pricing is
a movable feast, depending on the retail deal-du-jour,
but has hit as low as $299 for Go-Video's R6530 and typically
runs below $400 on more-sophisticated
decks. Those include RCA's DRC8000N, available for $339
at Sam's Club. The RCA model has 8-hour
recording and Gemstar's Guide+ one-touch programmable time-shifting, rarities shared
only with the top-shelf Philips DVDR80, which sells for
about $500 but adds an IEEE-1394 input for making digital-to-digital
dubs from digital camcorders. The RCA model, like all China-sourced
sub-$400 DVD+RW decks, offers only analog S-Video input.
Latecomer PC brand Gateway recently busted the IEEE-1394-ready
price-point with a $349 DVD+RW deck sourced in China, a
move industry observers contend will force Philips, Thomson
and other high-profile brands to match such step-up value,
even at the cost of margin. Typically, a digital IEEE-1394
jack adds $80-$100 to the retail sticker, at about $35-$50
cost at the manufacturing level, including royalties.
The
pickings are slimmer on the home deck front for DVD-RAM
and DVD-RW. Panasonic remains the visible champion of price-competitive
DVD-RAM-only decks: Its DMR-E50K is the lone battleship
against the DVD+RW onslaught, selling in the $350-$400
range, with the IEEE-1394-equipped DMR-E60 not far behind.
Samsung quietly hangs in around $400 with a DVD-RAM-only
home deck. Toshiba also is a DVD-RAM inventor and contender,
but has abandoned DVD-only recording. Like Panasonic, it's
staking out the high ground with value-added, PVR-like
DVD-RAM/hard disc combos. Such combos have yet to be offered
by the DVD+RW camp, which seems to be leveraging the low-cost
and "cookie-cutter" Philips "reference design" to
concentrate its ammunition on the entry-level segment and
thereby build market share. Meanwhile, the DVD+RW camp
has multipurpose recorders coming, executives in-the-know
told us. In the DVD-RW format, Pioneer is the only brand
running a foot race against the arrows. Sharp, on paper
at least, has DVD-RW decks, but from launch-to-date has
hidden its light under a bushel. Each company, like its
DVD-RAM brethren in the DVD Forum-blessed DVD-RAM camp,
has shifted emphasis away from single-function DVD recorders
to more sophisticated PVR-like combos with hard disc recording
and switchable fixed-disc/removable-media dubbing.
Bottom-line?
Here's the tale-of-the-tape from research firm NPD: The
DVD-RAM format for home DVD recorders had 58.9% market
share in retail sellthrough to consumers through Sept.,
compared with 40.1% for DVD+RW. DVD-RW showed at 1%.
More to the point, 80% of DVD burners are sold as build-ins
with PCs, and with DVD+RW stalwarts Dell and Hewlett-Packard
the 800-lb. gorillas in PC sales, 2/3 of all PCs shipped
with DVD drives have dedicated DVD+RW burners aboard
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that's +RW exclusively, not dual-format burners. Also
per NPD, blank media sales for the DVD+RW rose to 55% market
share through July, with the formerly dominant DVD-RW
slipping
to 44%. DVD-RAM blank media accounted for 1% in retail
sellthrough, NPD said. The think tank's sales input lacks
heavy hitters such as Wal-Mart, which especially through
its Sam's Club does high-end CE and PC sales and consistently
has the lowest prices we've found on home DVD recorders.
But NPD's sellthrough research does cover most leading
CE and PC chains. Sources in China told us at least 3
additional brands sourced there would be air-freighting
DVD+RW home
decks and PC burners to U.S. retail for the holiday rush.
Article reprinted with permission
of
Warren Communications News,
2115 Ward Court, NW,
Washington, DC 20037.
Phone 800-771-9202
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