Magazine article Information Today

InfoTech Forecasts Worldwide DVD-ROM Title Revenue to Exceed $500 Million in 1998

Magazine article Information Today

InfoTech Forecasts Worldwide DVD-ROM Title Revenue to Exceed $500 Million in 1998

Article excerpt

With the installed base of DVD-ROM-equipped PCs projected to reach 7 million by year-end as PC manufacturers begin volume shipments of these systems, worldwide DVD-ROM title revenue will rise from just $3.5 million in 1997 to $567 million in 1998, according to a new InfoTech report titled "Optical Publishing Industry Assessment, Ninth Edition."

Royalties from PC and upgrade kit title bundles will continue to contribute the majority of consumer DVD-ROM title publishing revenue in 1998, the report forecasts. By the second half of 1999, when DVD-ROM drives are expected to become a mainstream PC component, retail will become the dominant distribution channel for DVD-ROM titles, leading to a sharp increase in title revenue. By 2003, worldwide DVD-ROM title revenue across both PC desktop and TV set-top platforms is forecast to exceed $70 billion, as DVD-ROM supplants CD-ROM as the principal delivery format for all types of packaged interactive media, including applications software, business information, games, education, and computer-based training.

"As the industry transitions to DVD-ROM, InfoTech expects packaged interactive media to maintain a compound annual growth rate of over 10 percent through 2003 even as worldwide Internet usage increases, with DVD-ROM providing a high-bandwidth collectible format that is more complementary than competitive with online delivery," said InfoTech chairman and CEO Julie B. …

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