ABI Research Reveals Another ’’Cultural Revolution’’ in China

OYSTER BAY, NY -- March 15, 2005 -- Another “cultural revolution” is sweeping China. This time the small but powerful objects at the center of the storm are not little books, but portable audio and video players, along with high-definition DVD players and TVs.


While high-end TVs are gradually replacing CRT TVs in China and will do so at an increasing pace, 2004 was a disastrous year for domestic DVD player makers squeezed between high patent fees and falling prices. Three high definition disc standards surfaced in 2004: EVD, HVD and HDV, and in February, 2005, EVD was authorized as the recommended national standard for high definition disc.

EVD, HVD and HDV player makers face two big problems: first, they have to produce DVD-compatible players. Secondly, there is a severe shortage of movie content in domestic high-definition formats. While that situation lasts, soaring HD-DVD player sales will not improve the outlook for the domestic disc standard.

Meanwhile, the MP3 player is replacing the traditional CD player as the mainstream audio device. Flash memory models far outnumber hard disk-based players; color screen MP3 players are appearing, but due to their high price and small memory, ABI Research does not expect them to sell very well.

Two of ABI Research’s new studies shed new light on these and other important changes in the Chinese personal entertainment market.

“TV, DVD Player and PVR Market Trends in China” analyzes the product lines and recent movements of domestic TV, DVD, HD DVD and PVR makers, and offers readers a comprehensive understanding of the market’s current status and future prospects.

“The Chinese Portable Audio and Video Market in Transition” presents a complete list of MP4 and portable DVD player products and assesses their market prospects, while identifying devices that attract Chinese consumers - in turn defining opportunities for vendors and content providers.

Founded in 1990 and headquartered in New York, ABI Research maintains global operations that support annual research programs, quarterly intelligence services and market reports in wireless, automotive, semiconductors, broadband, and energy. Their market research products can be found on the Web at www.abiresearch.com, or by calling 516.624.2500.

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