CCID Consulting Co., Ltd. News

CCID Consulting: BD's Future Direction in China

BEIJING, June 18 Xinhua-PRNewswire — CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), recently released its article on China's BD market.

With Toshiba's announcement on its decision to stop HD DVD player production in February 2008, the competition for new DVD standards came to a close, with Sony's BD standard leading the way in future development standards. Sony's BD standard won support from both content providers and retailers. The coming of Beijing Olympic Games fuelled sales of high definition products, which is also seen as a great opportunity for BD products.

Does it mean BD is taking up the DVD market? According to CCID, in terms of the market status, BD only dominates its competitors at the standard level. In China's HD market, the market prospect of BD players and optical drivers is still not clear.

HD Standards Not Being Unified in China's Market

Firstly, CH-DVD still takes part in China's market. In accordance with the cooperation contract, Toshiba will keep supporting CH-DVD projects both in technology and market development, which is the last chance of Toshiba. Secondly, BD's success accelerates the convergence of China's independent red- ray HD standards. Although BD is technique superior to red-ray HD, industry alliance of domestic HD enterprises will help optimize the DVD industry.

Digital Download Threatening the Prospect of BD

Optical discs are not the only HD media to consumers any longer at present. People have more choices such as set-top box and online video. Digital download, including downloading from Internet and Video on Demand provided by Cable TV, has a much better growth compared with next generation DVDs. The explosion of online video websites has succeeded in training netizens' online watching habits now.

Moreover, consumers are more likely to have their own digital libraries, in which audios, videos, and texts to be stored, managed and searched in digital formats. The bottleneck of digital download is bandwidth, from which consumers will suffer in a long time. However, consumers will have better download experiences with further development of communications technologies.

Price and Contents Being the Bottleneck

High price-tags distant BD products from common consumers. In the market, BD players have to compete with low price DVD players and digital issuance. Cable and satellite TV providers have updated their equipments so that consumers will receive HD programs, making HD products more competitive even in middle-end market though BD is clearer.

Few varieties of BD discs is another bottleneck in the popularization of BD. Cooperating with content providers and providing consumers with high quality and low price digital contents is a new issue for BD camps.

Cooperation and Competition among BD Members

BD camps are facing both technique and marketing challenges. The lasting standard competition slows down consumers' understanding to next generation HD standards. BD members have to make consumers accept this new standard as soon as possible, popularizing BD disc standard together. On the other hand, BD members are doing their best to launch various products to compete in HD market.

Generally speaking, BD has a long way to go in China's HD market though being the only next generation HD format standard.

About CCID Consulting

CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: 8235.HK), is directly affiliated with China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has branch offices in Shanghai, Guangzhou, Shenzhen, Wuhan and Chengdu, with over 300 professional consultants after many years of development. The company's business scope has covered over 200 large and medium-sized cities in China. Based on major areas of competitiveness: industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrading, development strategy and planning, marketing strategy and research, HR management, IT programming and management. CCID Consulting's customers range from industrial users in electronics, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to becoming the No. 1 advisor for enterprise management, the No. 1 consultancy for government decisions and the No. 1 brand for informatization consulting.

For more information, please contact: Cynthia Liu Coordinating Manager CCID Consulting Co., Ltd. Tel: +86-10-8855-9080 Email: liuyan@ccidconsulting.com

SOURCE CCID Consulting Co., Ltd.

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