CD-ROMs, CD-RWs, combo drives and DVD drives have all found a place in the everyday life of the Indian PC user. And trends suggest that ODDs are further penetrating into the PC user segment with steadfast consistency, says R Manikandan

CDs and DVDs are everywhere these days. Whether they are used to hold music, data or computer software, they have become the standard medium for distributing large quantities of information in a reliable package. The Indian market has come a long way in the sphere of optical disk drives (ODDs). The need to store, make copies and manage digital images, video, text and data quickly and easily has led to a spurt in the ODD market. The rising popularity of ODDs can be gauged by the presence of a large number of vendors—mainly MNCs—in this space coupled with the wide range of product offerings. The end-consumers have choices both in terms of technology and price. The product range spans from the ubiquitous CD-ROM to CD-RWs, combo drives and DVD drives.

ODDs have been steadily increasing their foothold in the PC segment in India and trends suggest that they are further penetrating into the PC user segment with steadfast consistency. Certain market studies estimate the size of the ODD market in India to be around 75-80 percent of the installed base of PCs in India. Given such a scenario it will not be long before we see an ODD in almost every PC in the country. The studies also indicate that of the estimated market size for ODDs, 70-80 percent would be CD-ROMs, 20-25 percent would be CD-RWs and 5 percent DVD-ROMs.

One of the prime factors that determine the choice of customers while buying CD drives is speed of the device in terms of loading, reading, rewriting, etc. The other significant factor influencing buying decisions is the stability of the device in terms of overall operations that can be executed. A discerning look at the buying patterns and buyer preference parameters reveals that customers are looking for devices that are high on the technology front, while being simple and easy-to-use.

The statistics for CD-ROMs suggest that the device has reached a certain level of maturity. But as far as CD-RWs are concerned, the market is steadily growing. Consumers are realising the immense benefits that these devices offer and the rate of adoption has seen a corresponding increase. It is because a CD-RW is a more powerful device than a CD-ROM and is packed with a host of features that easily translate to good value for money.

In the SOHO segment, CD-RWs are used mainly for storage and entertainment purposes, while the SME segment perceives good utility value from CD-RWs. The share of CD-ROMs may become minimum in A and B markets, though it could continue to sell in C class pockets. Price will be the biggest determining factor, and as the gap narrows with the CD-ROM drive, CD-RWs could become the norm. Some of the new technologies involved with CD-RWs include Buffer Under Run Proof, Mount Rainier technology support, ZCLV and PCLV.

A closer look suggests that CD-RWs will soon find application in all segments of the economy. The SOHO and SME segments would primarily be driving volumes of the CD-RW market as it would not find much acceptance in corporate circles. It is because corporates mostly operate in a networked environment and the concept of sharing resources would eliminate large scale usage. As far as the storage needs of corporates are concerned, they would be relying on other types of storage devices that come with functionalities like high capacity, high speed access, reliability and availability.

One interesting point to note on the DVD front is that DVD drives have not been able to catch the imagination of users as expected. Some large operators in the ODD market tried to push sales of DVDs by stopping the shipping of CD-RW devices, but eventually failed to capture the market because of prohibitive costs.

Besides, the non-availability of media titles in the DVD segment also deterred growth of this segment. Moreover, the media cost of DVD-ROM/R/RW is very high, making it prohibitive for most users and enabling piracy in DVD to catch on.

The target customers for DVDs are home users, basically looking for multimedia-based utilities. The higher storage capacity of DVD media would make it a more attractive purchase for them once the prices come down. With more low-cost CD-RWs coming in, buyers—mainly the home users—have yet to get used to the idea of switching over to DVD drives.

For choosing the right drive one should take into account three main parameters: price, application and brand. Brand should be an important consideration when deciding on a drive. Similar to the PC market space, the ODD market also has some good too. Apart from these, a host of local brands also exist. Branded products not only offer good quality products but also offer excellent after sales support.

The Indian market, like in any other segment, is quite price-sensitive in the ODD space too. Price consciousness is the major reason why the CD-ROM drive still has the lion’s share in the ODD market. But a careful analysis shows that the price difference between a CD-ROM and a CD-RW is not much, if we consider the value-adds that CD-RW provides over CD-ROM. Applications like copying music, recording videos, creating CD albums, creating data back-up will increasingly drive customers towards CD-RWs.

However what is needed is to create awareness among end-users, channels and retail sellers, regarding the advantages of CD-RW drives over CD-ROMs, in terms of price differentiation, applications, etc. The coming years would see the increasing use of CD-RW drives though the CD-ROM would continue to have its share of pie.

The author is deputy general manager (IT Products), LG Electronics India. He can be contacted at mani@lgindia.com