DVD recorders will supersede standalone DVD players within the next four years, newly published market research has predicted.
Analyst IDC said that revenues from DVD player semiconductors will plummet by a compound annual rate of 21 per cent to $637.8m in 2008.
In contrast, DVD recorder semiconductor revenue is expected to achieve a compound growth rate of almost 40 per cent over the period and reach $3bn in 2008.
IDC also predicted that overall DVD semiconductor revenue will grow from $2.4bn to $3.7bn, and that DVD recorder semiconductors will be the dominant market force.
IdaRose Sylvester, IDC's senior research analyst for semiconductors, said: "Total DVD semiconductor revenue will grow steadily through the forecast period of 2004-2008, with a notable decline in DVD player semiconductor revenue and a significant rise in DVD recorder semiconductor revenue.
"DVD recorder semiconductor revenue will drive and support the DVD semiconductor revenue through this forecast period, while offering both significant opportunity and risk to industry participants."
The IDC market analysis found that integration is the leading trend, and an important cost reduction driver for DVD players in today's market.
The study noted that DVD player systems are "almost maxed out" on semiconductor integration, but that DVD recorder semiconductor integration is just starting.
Due to the complexity of DVD recorder systems, semiconductor costs are expected to remain relatively high throughout the forecast period.
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