Slower Than Expected DVD-ROM Acceptance

DVD-ROM has taken off slower than expected with the format regulated to relatively high-end PC and Mac portables and desktop computers. To date, DVD-ROM drives are not included in sub-$1,000 personal computers reportedly because of an estimated $40 manufacturing cost differential. CD-ROM drives cost about $40 compared to DVD-ROM drives which cost about $80. At those prices, computer manufacturers are opting to stay with CD-ROM offerings to keep prices competitively low and are offering DVD-ROM capability only in their step-up models. Also, new hybrid CD-RW drive technologies are reportedly being developed by Yamaha and Kenwood in which DVD-ROMs can be played back. Such hybrids could attract sizeable consumer support if the price is right and daunt DVD-ROM expectations. Further contributing to the slow market penetration of DVD-ROM is the continuing recordable DVD format wars and non-compatible CD-R playback. The scenario is still quite confusing and there is no industry standard, which is essential in the computer world.As for sub-$1,000 DVD-ROM realization, there will have to be further cost reductions in optical head and other component manufacturing for prices to decline to the point that DVD on lower-end models is feasible. Then too, there still is not a lot of content offered on DVD-ROM. Developers are waiting for a greater installed base of DVD-ROM drives and at present are not clamoring to release titles. Those few titles that have been market appealing are multidisc CD-ROM sets, such as IBMís World Book Discoveries and the National Geographic 100-year set that are reduced to a single or less-quantity disc DVD-ROM package. Such packages eliminate or substantially reduce disc swapping, which is a common consumer complaint with multiple-CD titles. Nor has the DVD-Video movie play feature of DVD-ROM particularly ignited demand for DVD-ROM-equipped PCs and Macs.Industry observers are now predicting that DVD-ROM shipments will barely exceed those of CD-ROM drives by the year 2000. Beyond 2000, predictions are virtually non-existent due to non-standardization and looming hybrid CD-RWs.