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Technology Stocks : C-Cube
CUBE 36.52+0.3%Dec 12 9:30 AM EST

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To: DiViT who wrote (18103)7/9/1997 4:12:00 PM
From: Rodger Wenzel   of 50808
 
Film studios set nationwide rollout for DVD

Reuters

LAS VEGAS -- Home video divisions of Time Warner Inc. and Metro-Goldwyn-Mayer Inc. on Tuesday unveiled a
nationwide digital video disc launch for this fall, escalating the rollout of the closely watched technology.

Digital video disc, also being called digital versatile disc or DVD, was launched this winter after years of battling over
hardware standards and copyright protection.

DVD puts movies in several formats and languages on one disc the size of a compact audio disc. Supporters think it
might eventually replace videocassette recorders, and it is widely seen as a first step in converging computer and
television technologies because DVDs can be played on both.

Several electronics companies have begun making DVD players, but so far only three of the seven major film studios
are selling DVD movies. The rollout has occurred in only seven U.S. cities -- Chicago, Dallas, Los Angeles, San
Francisco, Seattle, New York and Washington -- while supporters wait for early sales figures to determine how to
proceed nationally.

Obviously, for Warner, that time has come.

``In our first three months, Warner Home Video has sold nearly 1 million discs,'' Warren Lieberfarb, president of the
the video unit, said in a statement. ``Clearly, DVD's superb digital picture and audio quality have captivated
consumers.''

Warner made its announcement as the huge Video Software Dealers Association convention began in Las Vegas.

Warner will be joined in the nationwide rollout by sister company New Line Home Video, which also is a Time
Warner unit, MGM Home Entertainment and HBO Home Video.

Warner said it plans to aggressively market DVD in the fall and by year's end produce 127 DVD movies. Combined,
New Line, HBO and MGM plan to produce 81 more titles by the end of the year.

Film companies such as Sony Corp's Sony Pictures Entertainment Inc. and Polygram NV and hardware makers
Toshiba Corp., Philips Electronics NV and Thomson SA also support DVD.

Some giants of the film industry, however, like Walt Disney Co, Seagram Co. Ltd.'s Universal Inc, Viacom Inc. and
News Corp Ltd.'s Fox studios have withheld support awaiting further copyright protection.
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