Discs are initially bright red and gradual turn an unusable black with exposure to the air. The red disc is compatible with all players, DVD drives and gaming systems that can play DVDs. The system was reminiscent of an earlier pay-for-play disc system called DivX, which allowed users to pay a rental fee to unlock a disc for a 48-hour viewing period. That system eventually failed to generate a sustainable market.

Progressive Scan Progresses:
Since 2000, DVD player sales have included a progressive-scan output feature, which is designed to feed a 480p format picture to DTV-capable sets and monitors. Most progressive-scan units now in the market use a system known as 3:2 pull down, which is a special process for converting films shot at 24 frames per second to the 30fps rate of video. Like the progressive scan system, the technique helps to further clean the image of artifacts to produce a film-like appearance.

Audio Takes on Bigger DVD Role:
As for other new product trends, more DVD players are adding the ability to play back different forms of audio files, such as the Internet-friendly MP3 and Windows Media Audio (WMA) compressed audio formats. Additionally, many step-up players will decode one or both of the new high-bit-rate multi-channel audio formats: DVD-Audio and Super Audio CD (SACD). In addition to presenting higher-fidelity stereo music than CDs, these formats will allow the use of high-resolution multi-channel music playback. For more information, see the audio section of Digital America.

Manufacturers increasingly are adding DVD in combo TV systems (TV/DVDs or three-way TV/DVD/VCRs). In other cases, DVD players show up in integrated HTiB shelf systems, digital satellite TV decoders and in hard-drive-based digital video recorders (DVRs). (For more information see the audio section.) In 2004, CEA reported the TV/DVD combo player sales category sold 2.1 million units to dealers, representing a 37.9 percent increase.

Digital Imaging Comes to DVD Video:
A popular feature in many DVD video players to be sold in 2005 is the ability to play back digital still photos in the JPEG image format from CD-R/RW discs or, in some cases, from removable flash memory cards using built-in flash media readers. Some players even enable users to connect a printer via a USB port to make hard copies of still images.

DVD Recorders Generate Mass Market Acceptance:
As the sales pace of DVD players slows, shipments of DVD recorders are expected to accelerate in 2005. U.S. DVD recorder unit shipments reached over 1 million in 2004, according to market research firm In-Stat’s tabulations. By 2008, In-Stat forecasts annual DVD recorder shipments to increase to 20 million units as the price difference between a DVD recorder and a DVD player declines.

DVD recorder prices dropped as low as $129.99 in some Black Friday promotions in 2004, and In-Stat forecasts that threshold plummeting to $99 during the 2005 holidays.

For five years, DVD recorders have been building momentum as a replacement for the VCR. These decks offer users the ability to record programming at resolution levels falling somewhere between analog S-VHS VCRs and 480p EDTV. Additionally, the discs can be used to archive precious home movies on a format that will last longer than magnetic recording tape.

Key trends that hit the DVD recorder market in 2004 and that are expected to continue in 2005 and beyond, center on integration. Demand rose steadily in 2004 and into 2005 for DVD recorders that include built-in hard disk drives (HDDs). According to estimates from market research firm In-Stat, U.S. DVD recorders featuring built-in HDDs accounted for 35 percent of all DVD recorders sold in 2004, with that level expected to grow significantly in 2005.

Similarly, VCR/DVD recorder combination products have proven popular in the United States. Consumers easily understand the concept of combining VCR and DVD recorder functions in one box. Such devices make it easy to copy VHS tapes, though they are not supposed to enable the copying of copy protected movies on VHS cassettes, consumers can find a variety of options to skirt such limitations.

In addition, DVD recorders will continue to replace DVD player-only functions in combination products like home-theater-in-a-box systems.

Still, the DVD recorder was hindered to some degree in 2004 by high product returns. This was due to complexity of use in some models (typically related to poorly written user manuals), confusion over compatibility of recordable disc formats, and the discovery that users could not copy DVD movies or copy protected VHS tapes.

DVD Recordable Disc Formats:

When DVD recorders were first launched, manufacturers lined up behind one of three format camps for rewritable DVD media: DVD-RAM, DVD+RW or DVD-RW, with most also recording to one of two forms of less-expensive write-once media, either DVD+R or DVD-R. A brief description of the qualities of each follows:

Source: CEA Market Research

DVD­RAM:

This rewritable format was developed by a group of companies including Panasonic, Hitachi and Toshiba and is supported by Samsung. The format is authorized by the DVD Forum but is not compatible with the majority of current DVD video players or most DVD-ROM computer drives. It is offered in the standard disc size, although a smaller version is used in a new class of DVD-RAM camcorders. The format's primary applications are for video editing or for use in dedicated DVD-RAM recording decks. A key advantage over the other disc formats is its flexibility when performing non-linear video editing. Sequences are moved easily around on a disc. This is helpful for the use of chasing playback functions, which allows users to view the beginning of a recording while the programming still is recording. Typically, DVD-ROM decks also will record on DVD-R write-once discs.

DVD­RW:

Developed by Pioneer, this rewritable format also was authorized by the DVD Forum and boasts playback compatibility with a majority of DVD video players, depending on the selected bit rate settings.

DVD­R:
This is one of the most universal recordable DVD formats. DVD-R was sanctioned by the DVD Forum, which authorizes the DVD video standard. It is used by PC drives based on either the DVD-RAM or DVD-RW rewritable disc formats. Recordings made on the discs can be played back in most home DVD video players and DVD PC drives.

DVD+RW:
Developed by Philips and Sony, this format was hyped as the most universally compatible rewritable disc format for playback on existing DVD video players. The standard-setting DVD Forum has not authorized the DVD+RW format, although Philips has aligned a number of recorder and drive manufacturers to support the system, including Yamaha, Hewlett Packard, Ricoh, Thomson (RCA) and Mitsubishi.

DVD+R:
This is the write-once sub-format for DVD+RW system. Its attributes are said to be ease of use - no disc formatting or finalization are required in certain applications - and compatibility with a majority of the DVD video players in the market.

DVD-Multi Deck Arrives:
A big trend in 2004, which will grow significantly in 2005, was the decision by most DVD manufacturers to develop DVD recorders compatible in record and playback modes with multiple recordable DVD disc formats. Today, most DVD recorder makers offer decks that will play and record discs based on two or more rewritable and write-once disc formats. While most such decks record in the -RW, +RW and -R formats, a growing number of models in 2005 also will include the DVD-RAM format. This multi-format adoption increases the deck's ability to produce a disc that can be played by most DVD players.

IEEE­1394 Capability:
Most DVD recorders include IEEE-1394 digital connectors designed to accept only signals in the digital video (DV) format used by most digital camcorders. Lacking multi-industry acceptance of a digital copy protection solution for DTV signals, manufacturers have held off using more robust digital connectors for direct digital recording of DVDs and other sources.

High-Definition Optical Disc Formats Arrive:
The first disc players designed to present pre-recorded movies in full high-definition resolution are scheduled to arrive in one of a number of formats by fall of 2005. The two biggest contenders for this next-generation video disc system are based on blue-laser technologies, instead of the typical red laser systems used in DVD and CD players. However, a number of vendors were plotting to preempt the blue-laser system launched by dropping in low-cost high-definition disc recorders based on MPEG 4 compression systems and red laser optical pickups.

The special lasers in either red or blue color spectrums are specially developed to read more densely compacted pit alignments on a disc.

Mini-DVDs Pop Up:
Warner Brothers Home Video, which has intellectual property interests in the DVD format, pushed forward an adaptation of the DVD format for tiny portable players. The format, known as “Mini-DVD,” uses three-inch DVD-ROM discs offering high quality, full color pictures for tiny handheld DVD players targeted at the youth market. The tiny discs also will playback in standard DVD players. So far, Mini-DVD movie content has centered on titles appealing to children 15 years old and under.
First HDTV DVDs Appear:
Technically, the first high-definition optical discs arrived in 2004 in the form of a somewhat experimental red-laser DVD system pioneered by computer software giant Microsoft. The company announced 16 HD movies on (red laser) DVDs that use the HD video capabilities of Windows Media 9, which also is known as "WMV HD." Several deck manufacturers previewed possible DVD players that support the format.

However, without component players to support the discs, the market demand for WMV HD discs was virtually non-existent. The WMV HD discs were supported only by a handful of Windows XP PCs or Windows XP Media Center-PCs equipped with a 2.4GHz Pentium 4 or better processor.

China, Taiwan Develop Red Laser HD Formats:
A group of government-backed Chinese electronics makers announced plans to develop their own optical disc format which could support both standard and high-definition content. The format, called EVD (enhanced versatile disc), was developed primarily as a means of skirting heavy royalty payments Chinese manufacturers must pay for the right to produce DVD technology.

Chinese factories currently produce most of the world’s DVD players, and the Chinese market is one of the largest markets in the world.

Also heralding from China are the high-definition digital video disc (HDV) and the high-definition versatile disc (HVD) formats, while Taiwan companies have developed a forward versatile disc (FVD) HD disc format. All use advanced compression technologies and promise relatively low-cost options for high-definition playback and recording.

In the U.S., the Asian formats all face a stiff challenge in getting U.S. studios to agree to support the new systems. This may mean that if such decks do arrive here, they will be relegated to recording in-the-clear broadcast content, home videos or playing back software imported from Asia and Europe.