NEW YORK -- The International Recording Media Association, Princeton, N.J., expects a "breakthrough year in optical media" to have positive effects in the food channel as better-than-expected DVD sales are seen paving the way for expansion of the format within supermarkets.
IRMA president Charles Van Horn, who spoke at a recent press conference here, characterized the breakthrough by saying that total replication of optical media units, including all DVD and CD formats (DVD-Video, DVD-ROM and DVD-Audio and CD-Audio, CD-ROM, and CD-R, among others), will exceed the 10 billion mark worldwide this year. The projected total of 10.3 billion for 2000 is a 9% increase over the 9.2 billion mark reached in 1999.
With household penetration of DVD video players expected to reach at least 175 million in U.S. and world markets by 2004, expansion of the format in grocery would be a logical step, according to Van Horn. "I think supermarkets have been very successful with VHS rental and sales programs, and many of them already carry DVDs," he said. "For the amount of times a week consumers go to the supermarket, it's natural to just pick up a DVD."
In the U.S. and internationally this year, the number of DVD-Video units replicated will more than double (474 million discs) last year's total of 194 million.
Van Horn told SN he expects sell-through DVD-Video to be inviting to food retailers, since they only take up space, as opposed to DVD-Video rentals, which also take time and effort to check in and out. Van Horn added that he expects the DVD to continue to flourish in all distribution channels.
IRMA, which projects 10% of all households in the U.S. will be using the DVD format before the end of the year, could not contain its excitement and surprise over the success of the format. Van Horn said, "Who would have believed that DVD would go from 0 to 60 in little more than three years?" He added, "Not in our wildest dreams could we have hoped for a format that spans all vertical industries" including the motion picture and computer industries. In addition to DVD players, creating demand for DVD, according to IRMA, are DVD-PC drives and Sony's new PlayStation 2 game console, expected to be launched in limited supply this month.
In light of this outlook, Van Horn noted that VCR sales are hardly slowing down and the VHS format should not be overlooked. VCRs are still setting records "and still bode well for the foreseeable future," said Van Horn.
