A recent report from the Santa Clara Consulting Group has summarized the ongoing trends for the CD and DVD industry this year of 2012. The verdict: the market for optical drives and media are definitely going down, but not with the quickness that most techies are associating with the media. Quick obsolescence has become a natural association to optical media because of the continued rise of digital content. The ways people get their hands on music, videos, and data may be changing, but not so much so that CDs, DVDs, and their corresponding drives are experiencing a shocking hit in sales.
According to the Santa Clara Consulting Group report, CDs, specifically CD-Rs, experienced lower revenues in the third quarter of the year. The percentage was an almost 6% decrease compared to the second quarter in a market that is valued at about $90 million. CD disc writers suffered the most in terms of sales. Fact is, they don’t really sell and are on the way to obsolescence thanks to the built-in technology found in DVD and Blu-ray disc writers. For the CD format overall, almost 500,000 million CD-Rs were sold. That makes up about 98% of the CD format market. The other miniscule 2% was occupied by CD-RWs. In the global distribution of CD sales, North and South America had the largest consumption at 49%. Europe takes second with 28%, Asia, third with 15%, and Japan, fourth with 8%.
The DVD format is on the decline, but faring a lot better than the CD format. Sales were only down by 1% from the second quarter. Total sales volume figure for the third quarter of the year was $732 million. The figure is composed of DVD drive sales (found either in PCs or in VCRs) and recordable media sales. $600 million of the total revenue comes from the DVD drive sales, and the additional $132 million comes from the recordable media. Countering the situation of CD disc writers, DVD disc writers experienced a growth of 0.25%, attributed mostly to increase manufacturing of computers. Just as for CDs, North and South America make up the bulk of sales with 39%. Europe is at 27%, Japan at 24%, and Asia at 10%.
That’s the report about the CD and DVD market around the world. It’s a consistent downtrend, but does it mean obsolescence? Not by a long shot.