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HD DVD and Blu-ray Transforming Media Market as High-Definition Content Becomes Key for the Consumer Electronic, Gaming, Entertainment, and PC Industries
DigitalMediaStocks.com -- DVD and DVDR Continue to Dominate the Existing Media Storage Market While Battle for Next Generation DVD Moves Forward
POINT ROBERTS, WA and DELTA, BC -- (MARKET WIRE) -- November 29, 2006 -- www.DigitalMediaStocks.com,
an investor and industry news portal for the digital media sector, takes a
look at the ongoing format battle between Blu-ray and HD DVD and its impact
on market participants. Despite the uncertainty surrounding the next
generation DVD format, the growing consumer demand for high-density media
continues to strengthen the existing DVD/DVDR market, which has become the
storage medium of choice for digital entertainment. Participants such as
DVDR manufacturer Infosmart Group, Inc. (OTCBB : IFSG ), chip makers Broadcom
Corp and NECElectronics, as well as industry giants Sony, Toshiba and
others within the consumer electronics industry, continue to take advantage
of current DVD and DVDR demand with the flexibility to evolve and benefit
from future directions surrounding high-density technology.
As the format rivalry continues between Blu-ray and HD DVD, most agree that
content availability is critical to the success of the new formats. The
growing availability of high-definition content has created a potentially
lucrative market for next generation DVDs and market participants are all
vying for a piece of the pie.
Impacting the decisions of manufacturers are many key factors such as cost,
time and probability of market share success by each format. On the HD DVD
side, cost savings is a significant benefit for manufacturers choosing this
direction. Andy Kwok, CEO of global DVDR manufacturer Infosmart Group, Inc.
(OTCBB : IFSG ), explains, "As a media manufacturer, we are more than happy
to push HD DVD format rather than Blu-ray for several key reasons. There is
less re-tooling and capital investment. We can upgrade our existing
production lines to HD DVDR production, which means less investment capital
and a minimization of the new investment risk. Production cost is also
lower than with Blu-ray, which is then transferred to the consumers. With
price being a key decision making factor among buyers, HD DVD's cheaper
market price becomes important."
Many industry experts foresee dual format drives as likely to emerge,
supporting both Blu-ray and HD DVD formats. The market is already seeing
signs of this as chip makers such as NECElectronics and Broadcom announce
chip systems that will work with both standards and ultimately cut the cost
of building the necessary players.
The ongoing format battle has brought high-definition media further into
the spotlight, but has also become a driver to additional growth within
today's DVD world. According to The NPD Group's director of industry
analysis for consumer technology Ross Rubin, "Most significantly, the
format war increases the allure of the previous generation of DVD where you
have a single standard and abundant content and a mature ecosystem and you
don't have to worry about buying someone a gift of a movie in the wrong
format." This combined with the fact that DVDR volumes have picked up in
the past few years as the prices have come down and installations of DVDR
drives in personal computers continues to increase, bodes well for further
growth within the global DVDR market.
Infosmart's Andy Kwok adds, "At this moment, no one knows who will win this
format battle, but both formats will be co-existing in the market for a few
years before either one format finally takes over the other, or both are
unified. As a media manufacturer, we will keep our eyes closely on
developments and time our entry into this next generation high definition
DVD market carefully."
Read the Full Article:
http://www.digitalmediastocks.com/Articles/112906a.asp
To read more on Infosmart Group visit:
http://www.digitalmediastocks.com/CO/DFXN/Default.asp or the Company's
website at www.DigitalFX.com
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