Digital video discs get a boost
By Christopher Parkes in Los Angeles
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09/05/97
Financial Times
London Edition
Page 4
Copyright Financial Times Limited 1997
The embryonic digital video disc market was given a substantial lift yesterday by Walt Disney's announcement that it is to release its first batch of films in the format in time for the Christmas gift season.
The decision to set aside reservations about the potential for piracy of its coveted film library, and to join Warner Bros and others who launched the CD-like products last spring, is also likely to bolster the entertainment industry's profits.
According to a recent Wall Street analysis, sales of films in the new format could raise Disney's earnings by up to 17 per cent in the next few years.
The first players and discs went on sale in Japan and the US late last year, and the products are now moving into Europe and other markets. Disney, which did not disclose which titles would be available, said its roll-out beyond the US would closely follow availability of hardware.
The entrance of the company, which dominates world home video sale and rental markets with it vast library of animated and live action features, all but assures the DVD format of wide consumer acceptance, one analyst said yesterday.
After successful trials in seven large US cities early this year, the pioneers recently announced plans to go national in time for the holiday gift season. Universal Studios also said it would join Warner, MGM and New Line which initiated the tests.
At the time, Sony and Toshiba, leading DVD player makers, said national distribution promised retailers "a very exciting fourth-quarter selling season".
Warner Home Video said it had sold almost 1m discs in its first three months in the US market, which is forecast to absorb 5.6m discs this year. |
