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Although online content deliver services are going to expand at a rapid pace this year, it does not mean that traditional packaged media will extinct. Quite otherwise, Blu-ray disc (BD) will flourish in the coming years thanks to dropping prices. Unfortunately for manufacturers of consumer electronics, their BD-related revenues and profits will drop.

The global Blu-ray disc (BD) player market in set to grow 33% in 2012 to reach 42.4 million units, according to Strategy Analytics, a market research company. The global installed base of Blu-ray disc players is forecast to total around 108.3 million units in 2012 [not counting PlayStation 3 game console which life-to-date sales exceed 60 million units] thanks to hardware prices that are getting more affordable as well as widening choice of content and lowering costs of software.

BD player unit sales will continue to grow throughout the forecast period to reach 68.5m units by 2016, representing a compound annual growth rate of 14%. The global installed base of BD players is forecast to almost triple from 108.3 million units in 2012 to 299.4 million units in 2016, representing a 28% CAGR.

By contrast, BD player market value will decline from $7.6 billion in 2011 to $3.9bn by 2016, minus 10% CAGR. The continuing general decline in packaged media sales, the reduced consumer importance placed on owning content and the increased availability and convenience of streaming services will provide challenges in the Blu-ray player market. Nonetheless, that market will continue to grow for at least four years.

Tags: Blu-ray

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