Apple, Compaq adding recordable DVD drives

Daily Newsletters

Sign up to ZDNet UK's daily newsletter.

NEWS
Could be, if Apple and Compaq have their way. Both companies are scrambling to offer the ultimate in amateur moviemaking: the capability to record movies onto DVDs via a computer. Besides movies, the drives also can be used to make audio DVDs. Warner Music released the first DVD audio titles in October, setting the stage for a shift from music CDs to DVDs, which can be spruced up with music videos, games and links to online interactive content. Apple is expected to unveil new Power Macs next week capable of recording DVDs and CDs, according to sources who warn that these plans could change at the last minute. Compaq this week announced a new Presario consumer PC with a combo DVD/CD recordable/rewritable drive. That system ships in March. Using computers to make and edit movies is nothing new--whether in the home or in a professional setting. Sales of consumer digital camcorders, for example, which shoot movies that can be quickly transferred to a PC for editing, swelled to $3.3bn last year, or 5.7 million units, according to the Consumer Electronics Association (CEA). DVD is seen as the future for movie watching and making because of the format's crisp digital playback and its growing popularity. The CEA describes DVD players as the fastest-selling consumer-electronics device ever. On Friday, the trade association projected $2.4bn in DVD player sales for 2000, or 12.5 million units sold. But consumers have had limited options for storing and playing back their movies. The ability to record DVDs at home and then send them to grandma to watch in her DVD player is compelling, say analysts. In fact, PC Data analyst Stephen Baker described DVD recording as an essential technology for reinvigorating computer sales at retail, which in 2000 declined for the first time. "This is the kind of stuff that is going to rekindle demand in the future," he said. "DVD recording absolutely would be a compelling reason to buy a new PC." Both Apple and Compaq have good reason to try to spur PC demand. The drop in PC sales hit the consumer market first, and affected Apple and Compaq more seriously than some other computer makers. Both companies watched inventory on dealers' shelves swell, as retail revenue plummeted 30 percent in December compared with last year, according to PC Data. For Apple, DVD recording is a natural fit, particularly since the company already offers movie-editing software on all Macs. Apple's iMovie 2 lets consumers transfer content from a digital camcorder for editing on Macs and transferring to other media, such as a CD or a VHS tape. For some time Apple has also offered DVD-RAM, one of several competing DVD recording formats, as an option on Power Macs. But DVD-RAM is more suitable for data storage than for recording home movies, and the discs cannot be played in DVD players, said Dataquest analyst Mary Craig. "There are just too many compatibility issues with DVD-RAM," she said. Late last year, Apple started evaluating DVD-R (DVD recordable) drives from Pioneer, which the company plans to ship to computer makers sometime in February. Pioneer acknowledged Apple had been evaluating the drives, but would not comment on any product plans. However, sources familiar with the matter said Apple is likely to unveil a Pioneer DVD-R/CD-RW (CD rewritable) drive as an option on new Power Macs during next week's Macworld Expo trade show in San Francisco. The company also is expected to offer DVD/CD-RW drives on some Macs. The DVD-R drives are expected to appear first as a build-to-order option as early as late February. Apple, as part of its policy, would not comment on its product plans. Craig said the reasons for favouring DVD-R over DVD-RAM are obvious, particularly because of DVD-R's wide compatibility with DVD drives and DVD players. "If what we're hearing is true, you should be able to play the [recorded discs] in many players." Apple's DVD authoring software plans are uncertain. But at Macworld, Roxio--the software spinoff from Adaptec -- will release a new version of its Toast CD authoring software capable of recording to DVD-RAM and DVD-R/RW discs, said sources close to the company. Compaq's plans are more definite than Apple's, and perhaps more developed. On Wednesday, the Houston-based company introduced the MyMovieStudio Presario 7000 PC, equipped with IEEE 1394, or FireWire, ports and software for editing movies. In March, the company will begin offering Pioneer DVD-R drives on its Presario 7000 PCs, said Mark Vena, Compaq's director of consumer desktop marketing. Compaq expects to start accepting orders in about 30 days, he added. The PC maker is betting that pent up demand for making home movies on DVDs will help drive DVD-R sales. "The chief reason we're excited about DVD-R, DVD-RW technology is that it allows people to put out portable movies and play [them] on a DVD player," he said. Besides those interested in digital movies, Vena sees a lot of potential "for people who are just looking for large mass storage". Compatibility and the cost of DVD-R discs also influenced Compaq to adopt DVD-R. "The good thing about this drive is it's perhaps the most flexible of all the formats," Vena said. "It will be a DVD-R drive -- meaning you can record movies to recordable DVD discs, which are about 10 bucks -- but going forward that drive will be DVD-RW compatible with a software update." Compaq will provide software with the drives that will allow consumers to add menu and chapter options to their DVD-R discs similar to those found on professional DVD movies. Coincidently, Ulead next week will unveil a new version of its VideoStudio software with similar DVD authoring capabilities, the company said. DVD-R is not the only DVD recordable format out there, and the major competitors -- DVD-RAM and DVD+RW -- have major backers, such as Panasonic and Hewlett-Packard. But DVD-R is the first widely compatible format to market, with DVD+RW not expected before the second half of 2001. But the cost of the drives could create problems getting it to market. Andy Parsons, Pioneer's vice president of product development, would not comment on what PC makers will pay for the drives, but Vena put it at a few hundred dollars. Standalone drives sold at retail will carry a suggested price of $995, Parsons said, which some dealers could choose to discount. "That's too much. That's the wrong answer," said Craig, questioning whether drive costs will push up computer price tags too high for the majority of consumers. Craig said the margins on the drives and media, or discs, are enormous. "You can make the DVD-RW media for about the same price as the CD-RW media. It's dirt cheap. It's the whole chicken and egg thing. They need the volume, they want the volume, but they don't want to crash the price too soon." Parsons said DVD-R discs would sell in the $10 to $15 range and DVD-RW in the $20 to $25 range. But he expects that price to drop quickly. Pioneer initially will ship the drives with DVD recording capability but not rerecording. After a February meeting of the industry body known as the DVD Forum, which will finalise DVD-RW standards issues, Pioneer plans to release a software update enabling DVD rerecording. "We're just trying to follow the rules, be good guys and not jump the gun and say we're going to do that before we have the final OK from the forum," Parsons explained. Ultimately, DVD recording is here to stay, said Craig, who expects the technology will find its footing this year. In 2001, market researcher Dataquest expects manufacturers will ship 1.8 million DVD recordable drives -- for all formats -- up from 585,000 units last year. Dataquest predicts the number will reach 13.8 million units by 2004. For comparison, Dataquest forecasts that 40 million to 50 million CD-RW drives will be shipped this year. To really take off, retail drive prices must drop, PC Data's Baker said. "To reach the mass market, the drive prices have to come down, and $399 is probably where you want to be." Have your say instantly, and see what others have said. Click on the TalkBack button and go to the ZDNet News forum. Let the editors know what you think in the Mailroom. And read what others have said.

Post your comment

In order to post a comment you need to be registered and logged in.

You can also log in with Facebook. Log in or create your ZDNet UK account below

  • Login

Will not be displayed with your comment

By signing up for this service, you indicate that you agree to our Terms and Conditions and have read and understood our Privacy Policy. Questions about membership? Find the answers in the Community FAQ

Get ZDNet UK's daily newsletter

Enter your email address to sign up

ZDNet UK Live

Freebies202

Duplicate comments are not made intentionally. Its very good to know that now you are keeping check on this problem because sometimes a commenter...

5 hours ago by Freebies202 on Microsoft fixes blog comments, speeds up blogs with open source
kevinmchapman

"the very significant number of users" and "many (most) of us" - you have no evidence for these statements. It is a fact that most users are saying...

13 hours ago by kevinmchapman on A tale of two distros: Ubuntu and Linux Mint
Marg Menzies Harrison

Another grammar faux pas is the improper use of "you". When sitting down down in a restaurant, for example, I get cringe when the waitress...

15 hours ago by Marg Menzies Harrison via Facebook on 10 flagrant grammar mistakes that make you look stupid
zdnetukuser

And NOW, folks, for Canonical's next trick... Kubuntu is late. Here's a pencil. Draw your own conclusions. cf.:...

15 hours ago by zdnetukuser on Linux Minterface
Moley

@kevinmchapman. The discussion here reflects the very significant number of users who really do like the traditional menu system and who wish to...

17 hours ago by Moley on A tale of two distros: Ubuntu and Linux Mint
kevinmchapman

Er, no... It is an efficient means of finding the application/file/setting you need in one place. The icons are a simply a fallback for when you...

19 hours ago by kevinmchapman on A tale of two distros: Ubuntu and Linux Mint
TerryRK

Isn't the provision of a text based search an admission by the developers that the mass of icons approach does not work? I don't need to use a...

20 hours ago by TerryRK on A tale of two distros: Ubuntu and Linux Mint
kevinmchapman

"Unity and GNOME 3 both abandon the old text-based cascading menus in favour of a graphical icon-driven system." Point truly missed. Both use a...

21 hours ago by kevinmchapman on A tale of two distros: Ubuntu and Linux Mint
TerryRK

whs001 - Thank you, I'm glad you liked the article. I absolutely agree with you on your first point. I should perhaps have made it clearer that...

21 hours ago by TerryRK on A tale of two distros: Ubuntu and Linux Mint
Dennis Nilsson

If we allow corporate interest to dictate the way our government circumvents due process against foreign entities then we should accept the same...

22 hours ago by Dennis Nilsson via Facebook on ACTA stumbles in Germany
GHar123

I totally dislike pirating of works, I fear that artists will be deterred from creating works if they think that they are going to get ripped off....

24 hours ago by GHar123 on ACTA stumbles in Germany
JCB33

How dare film makers, artists or anybody that invests in creativity stop us pirating their works for free. I want to be able to walk into my local...

1 day ago by JCB33 on ACTA stumbles in Germany
Moley

@GrueMaster. I prefer horses for courses rather than one size fits all. I, and I suspect most other computer users, do not really wish to have...

1 day ago by Moley on A tale of two distros: Ubuntu and Linux Mint
greycynic

The product that scares me every time I have to use it is the Office 2007 version of Excel. The first bug that I found was applying the median...

1 day ago by greycynic on Ten flawed products that derail productivity
GrueMaster

Nice review and very informative. One thing I'd like to add (in reply to whs001's 1st question), the main reason to have the same interface from...

1 day ago by GrueMaster on A tale of two distros: Ubuntu and Linux Mint
Frederick Wrigley

I'be been using Mint 12 since the RC came out, and I am far more happy with the Cinnamon, the Mate, and, yes (with extensions), theGnome 3...

1 day ago by Frederick Wrigley via Facebook on A tale of two distros: Ubuntu and Linux Mint
bdantas

Excellent article. One small correction, though--although a fresh installation of Linux Mint 12 will, indeed, provide the user with a version of...

1 day ago by bdantas on A tale of two distros: Ubuntu and Linux Mint
Alan Ralph

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

1 day ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material
Alan Ralph

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

1 day ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material
Moley

For Gnome 2 die-hards, it is possible to add icons to the bottom panel (or top top panel, if you prefer) which provide the exact Gnome 2...

1 day ago by Moley on A tale of two distros: Ubuntu and Linux Mint