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DVD Burning Catches Fire

Boot Camp feature for Friday, December 26, 2003

DVD burning catches fire. Bloomberg Boot Camp, a report on today's technology. The price of drives that can be used to create DVDs has been falling all year long... .and the pace picked up as the holiday season approached. Even stand alone DVD recorders used in home entertainment systems have dropped below three hundred dollars. Just a couple of years ago, they were a thousand or more. That's good news for companies like Imation... which make the blank discs used to record on. CEO Bill Monahan...

"I expect in the next couple of years every PC, laptop to have a writeable DVD drive in it. The big difference is CD capacity is under a gigabyte, DVD capacity is over 8 gigabytes and it's going to move higher than that. We see Blue Ray coming on, AOD as new technologies in DVD and that's going to expand the capacity beyond 25 gigabytes per disc. So this has a lot of life. The storage products have a lot of life in them. A lot of capacity and speed increases in the future. So it's a pretty exciting area."

And even though the prices of blank discs have also dropped dramatically... .Monahan says they are still a profitable business...

"We expect to grow very aggressively in the CD and DVD businesses in the coming years. DVD is moving into the business to business space, it won't just be in the retail space as we move forward over the next couple of years and that's going to be very positive."

Imation CEO Bill Monahan. Bloomberg Boot Camp, I'm Fred Fishkin.