"..The total estimated value of unauthorized copies of PC application software CD-ROMs among consumer households is estimated to approach $675 million in 1999 in the U.S., according to a study sponsored by Macrovision and conducted in February, 2000 by San Mateo, CA-based Merrill Research & Associates. In 69% of the cases where unauthorized copies were made or borrowed, respondents indicated they would have purchased the software if copying were not an option.

The survey found that 20% of surveyed households have a CD-recordable drive currently installed in their household/home office. This represents a dramatic 200% increase in one year over the percentage of households that reported owning CD-recordable drives in Merrill Research's March 1999 study.

It is estimated that U.S. penetration of CD-recordable drives will more than double by the year 2001. This means that by 2001, most PC owners will know someone with a CD-recordable drive or will have one themselves, and will have access to CD-ROM copying capability. A doubling of the penetration of CD-recorders, coupled with consumers' growing familiarity with the capabilities of these devices, will give rise to at least a doubling in software industry's revenue lost through unauthorized copying, unless aggressive copy protection measures are used.

CD-recordable drives have only become widely available at affordable consumer price points under $200 within the past two years. The worldwide installed base of consumer-priced CD- recordable drives is expected to reach over 77 million in the next two years, with 35% in the U.S. and 30% in Europe. The International Recording Media Association forecasts that the replication of CD-R discs will exceed 1.3 billion units this year compared to 850 million units in 1999 worldwide. Given the fact that these discs can be purchased at retail for $1.00 or less, it is easy to see why CD-recordable drives have become one of the most popular consumer electronics products to become available in years.." NULL